Question 7FINCE021W – Coursework On The Hedge Fund Modelling And Analysis


Introduction : 7FINCE021W – Coursework on The Hedge Fund Modelling & Analysis

General instructions to students

  • Present your coursework in a report format, referencing your literature reviews by utilising the Harvard reference system.
  • The assignment should be produced in Word and Excel spreadsheets.
  • The assignment needs to be undertaken in pairs ONLY (2 maximum)
  • Word limit is 2500, excluding appendices and tables.
  • Work submitted through the Module Blackboard links will be checked via turn it in for plagiarism.

 Coursework requirement : 7FINCE021W – Coursework On The Hedge Fund Modelling & Analysis

 Your role and responsibilities

Assume you work for a hedge fund or a mutual fund. You will carry out modelling and analysis of hedge funds (UCITS III compliant), constructing a portfolio and monitoring performance.

All information on Hedge Funds should be accessed from the Bloomberg resources.

Please answer the questions on the following page. Your coursework needs to be presented in a professional manner, in the form of an investment intelligence report

CW Requirements for 7FINCE021W

a) Outline performance characteristics of major HF strategies over the last 5 years. (Mark 10%)

b) Identify a private client who you may wish to advise or to work for as his/her Wealth Manager. Develop an appropriate Investment Policy for a high net-worth client (minimum investment £10 bln in the fund). (Mark 20%)

c) Select four (or more) different hedge fund strategies and create a Fund of Hedge funds (FoHFs). Assume this FoHF had been constructed by you in January 2017.

Present an outline of appropriate investment theory and reasons for your investment choices. (Mark 10%)

The period used to gather the capital market expectations should be based on previous performance during the time period January 2014 – December 2016.

d) Construct your portfolio based on market expectations and judgement and assume that it is fully invested at the beginning of January 2017. Utilise suitable performance measure(s) and demonstrate how your portfolio has performed over the period that extends from January 2017 to January 2018.     (Mark 30%)

e) Present a critique of your outperformance or underperformance and modifications that may be necessary. (Mark20%)

f) Presentation, research and report writing skills developed.

Marks will also be awarded for report writing skills, quality of analytical skills, research that will demonstrate review of theory and application of techniques. You are advised to consult journal articles. (Mark 10%)

Total: marked out of 100%.

30% of this mark awarded for your assessment, will be carried forward to your final TMM.

Submission arrangements

  1. Submit one copy electronically through the formal module submission system on your module link via Blackboard. Keep one for your own files.
  2. There are penalties for late submission. Mitigating circumstances will need to be applied for and your CL will advise in these special cases.
  3. Insert title page information on the module, names of group authors and date of submission.
  4. Word count.
  5. Please use Harvard referencing system.