The MBA Hedge Funds Fundamentals Course

Name: The MBA Hedge Funds Fundamentals Course
Rating: 4.5 (91 reviews)

Learn about Hedge Fund Trading and Investment Strategies. Understand How Hedge Fund Strategies have Evolved over Time.

Created byRaj Gupta, Ph.D, Licensed Insurance Agent, MBA Teaching Experience

Last updated 7/2021

English

What you'll learn

Learn How Hedge Fund Managers Develop their Trading Strategies.
Learn How Hedge Fund Strategies Originated and Grew Over Time.
Learn How Corporate Finance Inspired Hedge Fund Strategies.
Learn How Financial Regulation Impact Hedge Fund Strategies.
Discover How MBA Level Courses in Hedge Funds are Delivered.
Learn How Various Hedge Fund Strategies have Performed over Time.
Learn About Major Hedge Fund Failures such as Long Term Capital Management.
Learn How Failures can Lead to the Dissipation of Billions in Days or Weeks.

Course content

6 sections • 110 lectures • 14h 21m total length

Course Introduction Video7:34
In this Lecture, I will provide an Introduction to the Course.
Course Materials11:33
In this Lecture, we will discuss Course Materials.
Features of MBA Courses6:46
In this Lecture, we will discuss the Features of this Course that make it an MBA Level Course.
The Basics of Excel13:23
In this Lecture, we will discuss the basics of Excel.

Why Corporate Finance Matters4:37
In this Lecture, we will set the stage for a discussion on how Corporate Finance inspired Hedge Fund Strategies.
The Company Life Cycle11:58
In this Lecture, we will discuss various stages of a company from start-up to IPO.
Investment and Financing Decisions13:03
In this Lecture, we will discuss the two key types of Financial Decisions, Investment and Financing Decisions.
Balance Sheet and Equity Values13:04
In this Lecture, we will examine the differences between Book and Market Values.
Modeling the Stock Price12:15
In this Lecture, we will examine the process of discounting dividends to calculate the Stock Price.
Assignment 1: Calculate Value of Growth Opportunities
Bond Prices and Characteristics14:23
In this Lecture, we will examine the features of bonds.
Calculating Bond Prices Part 113:08
In this Lecture, we will calculate Bond Prices in Excel.
Calculating Bond Prices Part 25:04
In this Lecture, we will calculate prices and yields of bonds in Excel.
Coupon Rates and Yield to Maturity7:24
In this Lecture, we will compare coupon rates and yields to maturity.
Determining Coupon Rates and Yields Part 18:39
In this Lecture, we will examine how coupon rates on bonds are determined.
Determining Coupon Rates and Yields Part 28:26
In this Lecture, we will further examine how coupon rates on bonds are determined.
Clean and Dirty Bond Prices2:33
In this Lecture, we will define Clean and Dirty Bond Prices.
Assignment 2: Calculate Bond Prices
Economic Breakeven11:20
In this Lecture, we will define and calculate Economic Breakeven.
Returns and Performance Measurement12:55
In this Lecture, we will examine the process of calculating returns.
SEC Forms Part 112:20
In this Lecture, we will review forms that companies must file with the SEC.
SEC Forms Part 27:46
In this Lecture, we will further review forms, companies must file with the SEC.
Forms in Other Jurisdictions5:04
In this Lecture, we will discuss forms in other jurisdictions as well as regulators in other jurisdictions.
Risk Management12:53
In this lecture, we will discuss various risk management tools companies use such as futures and options.
Role of Relative Value Hedge Funds6:18
In this Lecture, we will discuss how corporate finance inspired relative value hedge funds.
Role of Event Driven Hedge Funds5:26
In this Lecture, we will discuss how corporate finance inspired event driven hedge funds.
Role of Opportunistic Hedge Funds5:43
In this Lecture, we will discuss how corporate finance inspired opportunistic hedge funds.
From Corporate Finance to Hedge Funds1:46
In this Lecture, we will transition from corporate finance to Hedge Funds.
Corporate Finance Quiz

The Origins Of Hedge Funds4:14
In this Lecture, we will discuss the Origins of Hedge Funds and the roles of Ben Graham and A. W. Jones.
What are Hedge Funds?11:20
In this Lecture, we will discuss what Hedge Funds are.
Purpose of Hedge Funds4:51
In this Lecture, we will discuss the purposes of Hedge Funds.
Financial Intermediaries8:47
In this Lecture we will define and discuss the roles of Financial Intermediaries.
Purpose of Hedge Funds - Find Poorly Performing Companies3:01
In this Lecture we will discuss how hedge funds can derive value by taking positions in poorly performing companies.
Purpose of Hedge Funds - Funding Startups2:28
In this Lecture, we will discuss how hedge funds can derive value by investing in start-ups.
Purpose of Hedge Funds - Find Irregularities1:48
In this Lecture, we will discuss how hedge funds can derive value by finding irregularities.
Purpose of Hedge Funds - Finding Fraud1:27
In this Lecture, we will discuss how hedge funds derive strategies when companies engage in fraud.
Purpose of Hedge Funds - Find Inefficiencies in the Economy5:39
In this Lecture, we will discuss how hedge funds derive value from inefficiencies at companies.
What Motivates a Hedge Fund Manager?4:34
In this Lecture, we will discuss what motivates a Hedge Fund Manager.
Further Hedge Fund Insights2:44
In this Lecture, we will set the stage for a general discussion of Hedge Funds.
Long and Short Positions13:43
In this Lecture, we will discuss Long and Short Positions.
Investments Versus Investment Strategies10:37
In this Lecture, we will discuss the distinctions between Investments and Investment Strategies.
Securities Act of 193316:10
In this Lecture, we will discuss the Securities Act of 1933.
Investment Company Act Part 111:38
In this Lecture, we will discuss the Investment Company Act of 1940.
Investment Company Act Part 210:07
In this Lecture, we will continue our discussion of the Investment Company Act of 1940.
Investment Advisers Act5:51
In this Lecture, we will discuss some highlights from the Investment Advisers Act of 1940.
Hedge Fund Regulation10:00
In this Lecture, we will discuss how Hedge Fund Regulations have evolved.
Form PF9:42
In this Lecture, we will discuss Form PF.
EU AIFMD6:28
In this Lecture we will discuss EU AIFMD, the European Framework for regulating Hedge Funds.
Growth of Hedge Funds10:30
In this Lecture, we will discuss the evolution of Hedge Funds between 1949 and 2020.
Recap of Hedge Fund Fundamentals1:16
In this Lecture, we will recap the basics of hedge funds.
Hedge Fund Fundamentals Quiz

How Hedge Funds Operate1:16
In this Lecture, we will discuss the operational characteristics of hedge funds.
Parallel Funds Versus Master Feeder Arrangements9:06
In this Lecture, we will distinguish between Parallel and Master Feeder Structures.
The Prime Broker and Custodian9:10
In this Lecture, we will discuss the roles of the Prime Broker and Custodian.
What Hedge Funds are Not5:59
In this Lecture, we will examine the role of Market Makers.
The Administrator8:16
In this Lecture, we will discuss the role of the Administrator.
Top Administrators and Prime Brokers Worldwide2:34
In this Lecture we will examine the major services providers worldwide.
The Auditor and Law Firm4:26
In this Lecture, we will examine the roles of the Auditor and Law Firm.
Net Asset Value7:13
In this Lecture, we will discuss the calculation of Net Asset Value.
Service Providers Play a Key Role0:28
In this Lecture, we will review the roles of service providers.
How Hedge Funds Operate

Analyzing Hedge Fund Strategies1:36
In this Lecture, we will set the stage for our analysis of hedge fund strategies.
Side Pockets and Co-Investments6:59
In this Lecture we will discuss Side Pocket and Co-Investment Structures.
Introduction to Relative Value Strategies8:16
In this Lecture, we will discuss Relative Value Strategies.
Defining Convertible Arbitrage and Bonds7:49
In this Lecture, we will define Convertible Arbitrage and examine the features of a Convertible Bond.
Convertible Bond Mutual Funds12:59
In this Lecture, we will examine the features of Convertible Bond Mutual Funds.
Convertible Arbitrage - The Details15:16
In this Lecture, we will examine how Convertible Arbitrage Managers implement their trades.
Convertible Arbitrage - A Numerical Example8:21
In this Lecture, we will examine a numerical example of a Convertible Arbitrage Trade.
Convertible Arbitrage Performance8:34
In this Lecture, we will examine the historical performance of Convertible Arbitrage.
Convertible Arbitrage Outlook Going Forward5:44
In this Lecture, we will discuss the Outlook for the Convertible Arbitrage strategy going forward.
Fixed Income Arbitrage Performance7:19
In this Lecture, we will examine the Historical Performance of Fixed Income Arbitrage.
Fixed Income Arbitrage Numerical Examples Part 110:57
In this Lecture, we will examine Yield Curve Patterns and Bond Pricing.
Fixed Income Arbitrage Numerical Example Part 29:12
In this Lecture, we will examine Yield Curve Arbitrage.
Fixed Income Arbitrage Outlook Going Forward9:47
In this Lecture, we will discuss the Outlook for the Fixed Income Arbitrage strategy going forward.
Defining Equity Market Neutral Strategies6:31
In this Lecture, we will define Equity Market Neutral Strategies.
Equity Market Neutral Historical Performance9:15
In this Lecture we will examine the Historical Performance and Details of Equity Market Neutral Strategies.
Equity Market Neutral Outlook Going Forward4:59
In this Lecture we will discuss the Outlook for the Equity Market Neutral strategy going forward.
Relative Value Strategies Quiz
Introduction to Event Driven Strategies2:14
In this Lecture, we will discuss Event Driven Strategies.
Merger Arbitrage - The Details11:24
In this Lecture, we will examine how Merger Arbitrage Hedge Fund Managers implement their trades.
Merger Arbitrage Historical Perfomance7:42
In this Lecture, we will examine the Historical Performance of Merger Arbitrage.
Merger Arbitrage Outlook Going Forward3:00
In this Lecture, we will discuss the Outlook for the Merger Arbitrage strategy going forward.
Distressed Securities - The Details12:25
In this Lecture, we will examine Distressed Debt Investing.
Distressed Securities Historical Performance7:52
In this Lecture, we will examine the Historical Performance of the Distressed Securities hedge fund strategy.
Distressed Securities Outlook Going Forward3:18
In this Lecture, we will discuss the Outlook for the Distressed Securities strategy going forward.
Event Driven Strategies Quiz
Introduction to Opportunistic Strategies3:55
In this Lecture we will discuss Opportunistic Strategies.
Long Short Equity - The Details12:56
In this Lecture, we will examine the details of the Long Short Equity Strategy.
Long and Short Positions13:28
In this Lecture, we will examine select Hedge Fund Long and Short Positions.
Long Short Equity Historical Performance2:19
In this Lecture we will examine the Historical Performance of Equity Long Short Hedge Funds.
Equity Long/Short Outlook Going Forward3:02
In this Lecture, we will discuss the Outlook for the Equity Long/Short strategy going forward.
Emerging Markets Details and Historical Performance13:24
In this Lecture, we will examine the Details and Historical Performance of the Emerging Markets Strategy.
Emerging Markets Outlook Going Forward1:49
In this Lecture, we will discuss the Outlook for the Emerging Markets strategy going forward.
Global Macro - The Details7:36
In this Lecture, we will examine the details of the Global Macro Strategy.
Global Macro Historical Performance7:46
In this Lecture, we will examine the Historical Performance of the Global Macro Strategy.
Global Macro Outlook Going Forward4:09
In this Lecture, we will discuss the Outlook for the Global Macro strategy going forward.
Managed Futures - The Details9:58
In this Lecture, we will examine the details of the Managed Futures Strategy.
Managed Futures Trades4:31
In this Lecture, we will examine how Managed Futures Hedge Fund Managers implement their Trades.
Managed Futures Historical Performance5:54
In this Lecture, we will examine the Historical Performance of the Managed Futures Strategy.
Managed Futures Outlook Going Forward2:10
In this Lecture, we will discuss the Outlook for the Managed Futures strategy going forward.
Opportunistic Strategies Quiz
Fund of Funds Details and Historical Performance8:56
In this Lecture, we will examine the details and historical performance of Funds of Funds.
Investor Responsibilities6:07
In this Lecture, we will discuss how Investors should approach Hedge Fund Investing.
Qualitative Hedge Fund Due Diligence7:40
In this Lecture, we will discuss the Qualitative Hedge Fund Due Diligence Process.
Quantitative Hedge Fund Due Diligence10:29
In this Lecture, we will discuss the Quantitative Hedge Fund Due Diligence Process.
Performance and Risk Measurement17:28
In this Lecture, we will examine key Hedge Fund Performance and Risk Measures.
Fund of Funds, Investor Responsibilities and Risk Measurement Quiz
Recap of Hedge Fund Strategies2:26
In this Lecture, we will recap our analysis of hedge fund strategies.

Hedge Fund Failures1:16
In this Lecture, we will set the stage for a discussion of hedge fund failures.
Insights on Hedge Fund Failures5:40
In this Lecture, we will discuss insights on how hedge funds fail.
Failure of Long Term Capital Management16:08
In this Lecture, we will examine the failure of Long-Term Capital Management.
Failure of Amaranth Advisors14:52
In this Lecture, we will examine the failure of Amaranth Advisors.
Failures Due to Insider Trading13:22
In this Lecture, we will examine hedge funds that failed due to Insider Trading.
Failures Due to Outright Fraud14:22
In this Lecture, we will examine hedge funds that failed due to outright fraud.
Recap of Hedge Fund Failures1:20
In this Lecture, we will recap our discussion of hedge fund failures.
Hedge Fund Failures Quiz
Some Additional Details4:47
In this Lecture we will discuss Investor Responsibilities and the Wells Notice.
MBA Course Outcomes3:09
In this Lecture, we will review MBA Course Outcomes.
Concluding Remarks9:10
In this Lecture, we will reflect on the material that we covered and conclude the Course!

Requirements

No Prerequisites are Necessary. We will cover all background knowledge before moving on to Advanced Topics.
No Knowledge of Finance is Necessary. We will cover all Finance Fundamentals before Moving on to Hedge Funds.
You will need access to Microsoft Excel to complete the exercises. We will cover the basics of Microsoft Excel in the Course.

Description

This is an MBA Level course on Hedge Fund Fundamentals. We will begin by examining how Corporate Finance inspired Hedge Fund Strategies. We will examine Capital Budgeting and Capital Structure decisions. We will examine Stock and Bond Pricing as well as Economic Breakeven. We will begin our Analysis of Hedge Funds by examining the Origins of Hedge Funds. We will examine how Financial Regulation starting with the Securities Act of 1933 shaped Hedge Funds. We will also examine the 40 Acts and Dodd-Frank. Hedge Funds were brought under regulatory purview following the Financial Crisis of 2007-2009. We will examine the adoption of Form PF in the United States and EU AIFMD in Europe. We will examine the growth of Hedge funds from its origins in the 1920s to the current time.

Once we have examined the Fundamentals of Hedge Funds, we will shift our focus to how hedge funds operate. We will examine the roles of the major Service Providers such as Prime Brokers, Custodians and Administrators. We will examine the process of Net Asset Value (NAV) calculation.

Following our Discussion of Service Providers, we will analyze hedge fund strategies. We will examine the three major Groups of Strategies which are Relative Value, Event Driven and Opportunistic. We will examine common trading strategies and map historical returns of those strategies. We will examine historical returns for the US, EU and other jurisdictions. We will examine historical returns from four sources: Credit Suisse, HFR, BarclayHedge and Edhec-Risk. We will discuss why certain strategies have not been able to generate stellar returns.

Finally, we will examine some of the major Hedge Fund Failures. We will examine the big four failures i.e. Long Term Capital Management, Amaranth Advisors, SAC Capital and Bernard Madoff Investment Securities.

This is a 14+ hours course with numerous downloadable resources. Each Lecture Video is accompanied by a Lecture Plan. The Lecture Plan is a Word Document listing 10-15 bullet points for each Lecture. I recommend viewing the Lecture Plan before watching the Videos. Scroll down and watch the Preview Lectures on Course Materials, Life Cycle of Companies and Origins of Hedge Funds. I will see you in the Course!

Who this course is for:

Any Financial Analyst Looking to Expand their Knowledge of Hedge Funds.
Any Aspiring Investment Banking Analyst Wishing to Broaden their Knowledge of Hedge Funds.
Anyone Applying to an MBA Program Wishing to Expand their Knowledge of Finance Fundamentals and Hedge Funds.
Anyone Applying for a Job at a Hedge Fund or a Private Equity Fund.
Any Current MBA Student or Graduate who was not Offered a Course on Hedge Funds.
Physicians, Lawyers, Engineers and Other Professionals Wishing to Learn about Hedge Funds.

The MBA Hedge Funds Fundamentals Course

What you'll learn

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Course content

Introduction4 lectures • 39min

From Corporate Finance to Hedge Funds22 lectures • 3hr 16min

Hedge Fund Fundamentals22 lectures • 2hr 37min

Operating Hedge Funds9 lectures • 48min

Hedge Fund Strategies43 lectures • 5hr 28min

Major Hedge Fund Failures10 lectures • 1hr 24min

Requirements

Description

Who this course is for: