Introduction to Hedge Funds

Short history of hedge funds and fundamental features

• Significant events
• Figures and sources of information
• Investors
• Critical analysis of performance data

• Practical workshop

• Hedge fund indices and the extension of the efficient frontier

Alternative management techniques

• Security lending, shorting and use of leverage
• Risk management
• Hedge fund business model

• Practical workshop

• Construction of a long-short fund

Investment forms

• Single and multistrategy
• Funds of funds and managed accounts
• CPPI and options
• CFO

• Practical workshop

• CPPI fund simulation

Arbitrage Funds or Relative Value

• Long-short equity
• Statistical arbitrage
• Convertible arbitrage
• Fixed income arbitrage

• Practical workshop

• LTCM and fixed income arbitrage

Event Driven Fund

• Risk arbitrage
• Activist hedge funds
• Distressed securities

• Practical workshop

• TCI and other activist funds

Directional Funds

• CTA
• Global macro
• Emerging

• Practical workshop

• Currency trading

Regulatory Framework

• Offshore and on-shore legal structures
• Role and status of the prime broker
• Regulations (FSA, SEC, BAFin...)
• Other key-players : depositary, transfer agent, accountant, ...

• Practical workshop

• European regulatory approach

Selection, due diligence and investment

• Performance analysis
• Questionnaire and Due Diligence
• Diversification

• Practical workshop

• The Madoff case