Session 1:

Introduction

• Hedge Funds defined. Lock-ups, Gates, Hurdle Rates

• The pursuit of Absolute Return and Performance Fees. So what happened in 2008?

• How large is the Hedge Fund Universe? Lesson from 2008: Smaller than it was

• Where are they? Domicile, Onshore VS Offshore

• Asset Class performance or Manager value-added? The search for Alpha

Session 2:

Hedge Fund Tactics, Counter-Parties and Competition

• Tactics - Leverage & Short Selling. Lesson from 2008: Regulatory intervention

• Where is the competition? The reaction from the traditional Fund Managers

• External Relationships - Prime Brokerage, Custodians, Fund Administrators

• Lesson from 2008: Counterparty Risk

Session 3:

Issues for Hedge Fund Investors

• Rationale for Hedge Funds in an Investors’ Portfolio. Is it still there?

• The non-correlated Asset Class, Survivorship Bias, Drawdown

• Lesson from 2008. HNWIs leaving the ship, Institutions more cautious

• Lesson from 2008: Liquidity mismatch

• Leverage, Risk and Transparency

• Risk-adjusted performance measurement

• Institutionalisation of Hedge Funds, Index Providers – Benchmark Risk

Session 4:

Risk Management for Hedge Funds

• Market, leverage and Credit risk

• Political and legal risk

• Gap and liquidity risk, Mark-to-market risk

• Why do Hedge Funds fail? Do not forget Operational Risk

• Due Diligence. Lesson from 2008: The Madoff affair

• Tools for the Analysis of Financial Risk – From VaR to Stress Testing

• The Regulator’s standpoint

Course Close