Hedge Fund Project
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You are launching a hedge fund and need to prepare a summary of the offering documents to present to the investor
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Hedge Fund Project
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You are launching a hedge fund and need to prepare a summary of the offering documents to present to the investor. The summary needs to include the following:
Fund Structure
Fee structure
Subscription and redemption terms
Strategy – Choose one of the strategies listed in the lecture.
i.This needs to be a thorough description and give details to the types of investments utilized (bonds, equities, options, futures, swaps, forwards) and specific industries/sectors that will be invested in.
ii. Provide detailed reasoning as to how you are going to diversify the portfolio, manage risk, and generate reliable returns (foreign markets, currency hedges, derivatives used to hedge, etc.)
iii. Explain how you are going to use quantitative and/or fundamental analysis to make investment decisions.
Pick two specific companies that fit within your strategy and provide the following:
Give a detailed description of the company and the sector/industry they are in.
Will you be going long or short in the position? Why?
Do you plan to hold the investment long-term? Why or why not?
Compare the company to a competitor’s stock. Why was this company chosen instead of a competitor?
What potential risks may the company face that could impact their stock price? (political, environmental, natural disasters, holidays, etc.). What would cause a price increase? Decrease?