UCL School of Management

Module Fact Sheet

MSIN0210: Hedge Fund Strategies

Taught by
Level
Masters, level 7
Terms
2
Delivery method
The module will be delivered over 5 weeks in 3-hour blocks.
Assessment
Examination (2 hours) 60%, Group coursework 40%
Previous Module Code
N/A

Course overview

The objective of Hedge Fund Strategies (HFS) is to expose students to the world of hedge funds by focusing on some of the most commonly used strategies employed in the industry. It covers different hedge fund strategies, which may include long/short equity, dedicated short bias, merger arbitrage, fixed income arbitrage, convertible arbitrage, global macro, and managed futures.  Beyond the lectures of the course, the class is divided into groups that form individual funds that are tasked with managing a portfolio of paper money using some of the concepts developed in class. Every class will include a discussion of market conditions as well as how funds are performing. This discussion mimics morning meetings ate real hedge funds. In so doing, the module helps students replicate the decisions made by some hedge fund managers in real-time, introducing the element of investment decisions in uncertainty to the module’s curriculum.

Learning outcomes

Upon successful completion of the module, students will be able to:

  • Comprehend and apply concepts such as arbitrage in hedge funds and critique the roles that short-sellers play in an efficient market.
  • Apply knowledge of equities, fixed income, and derivatives in building market-neutral portfolios.
  • Develop knowledge and understanding of a range of ubiquitous strategies used by hedge funds, including long-short, fixed income arbitrage, merger arbitrage, and convertible arbitrage.
  • Develop practical experience in managing a large portfolio of paper money in a team setting, and in real-time, not under simulated conditions.
  • Explore hedging and other techniques to improve risk-adjusted performance of fund and compute and interpret large portfolio metrics related to risk-adjusted performance.

Assessment summary

Examination (2 hours) 60%, Group coursework 40%

Essential reading

Suggested Reading:

Lhabitant, F.; “Handbook of Hedge Funds”. 2007. Wiley. 1ed.

Stefanini, F.; “Investment Strategies of Hedge Funds”. 2006. Wiley .7ed.

Past versions of this module

MSIN0163 18/19

Last updated Monday, 15 July 2019