Assessment:

50% individual assignment (take home exam) Students will have a deadline to submit
their individual assignment during the exam session period

50% presentation on the case study (assessed during the second session of the course)
Mandatory:
Yes
Mandatory course attendance :
Yes
Description:
Hedge funds are the fastest growing sector of the financial industry that is at the forefront of
investment innovation. This course provides an introduction to the major developments in the
hedge fund industry. It delves into the techniques used by hedge fund managers to trade and
invest. This course aims at giving participants a good understanding and workable knowledge of
the techniques that should be part of the toolkit of anyone investing in, analysing and/or advising
private clients on the inclusion of hedge funds in their portfolios. 1. Hedge fund overview 1.1.
Evolution of the hedge fund industry 1.2. Defining a hedge fund: key characteristics 1.3.
Operational and organizational structures 2. Hedge fund strategies 2.1. Understanding the tools
used by hedge funds 2.2. Hedge fund strategies 3. Investing in hedge funds 3.1. Evaluating
hedge fund performance 3.2. Benefits and risks of hedge fund investing 3.3. Incorporating
hedge funds in asset allocation 3.4. Outlook
Learning Outcomes:
On completion of the course unit successful students will be able to:
* Recognize the characteristics of alternative investments; * Understand the risk and return
profiles of hedge funds and the characteristics of major hedge fund strategies; * Understand the
techniques that hedge fund managers use to trade and invest; * Grasp the parameters for
building a successful hedge fund portfolio; * Understand the benefits and pitfalls of hedge fund
investing.
Note:
Bibliography: * Slide deck containing course material, including references for academic
papers * Case Study: o "AQR's Delta Strategy", Harvard Business School (HBS 9-212-038) *
Optional background reading: o Lhabitant, F.-S., Handbook of Hedge Funds, Wiley (ISBN: 978-
0-470-02663-2) o Lo, Andrew W., Hedge Funds: An Analytic Perspective - Updated Edition
(ISBN: 9780691145983)