Advanced knowledge of the latest research issues
The Hedge Funds Programme seeks to explain why hedge funds have been so attractive in recent years and contemplates whether this performance is sustainable.
Beginning with an overview of the hedge fund industry, it reviews the various hedge fund investment models in existence. Advances in research are introduced to establish a comprehensive framework that encompasses a wide range of hedge fund strategies.
This framework is then used to demonstrate how hedge fund investment models differ from those of mutual funds and how alphas can be measured. The programme draws on the research work carried out at the BNP Paribas Hedge Fund Centre.
Co-sponsored by CFA Institute
The programme is both academically rigorous and aligned with professional practice. CFA Institute members who complete the programme will obtain 24 continuing professional development credit hours.
The programme profiles investors in hedge funds and analyses how they select data and indexes to measure hedge fund performance. It details the specific criteria involved in the hedge fund manager selection process and the ensuing contractual negotiations. Features such as high watermark or hurdle rates, which are specific to hedge funds, are introduced.
During application to the programme, participants will be asked to submit three questions they would like to see the programme answer. Faculty will then use these questions to determine the emphasis put on specific topics.
Key topics include:
- return decomposition into alpha and beta across a range of hedge fund trading strategies using sophisticated statistical techniques
- persistence of alpha; whether age, capital flows, and size hurt alpha
- how incentives of managers (delta of the call option of the incentive fee contract) relate to future performance
- the effect of changing investor expectations and regulation (UCITS III)
- what the future of the industry may be, given the replicas or clones that are being offered.
Benefits to participants
The programme draws on the latest research conducted both at the London Business School and other leading Universities, and reflects the latest thinking giving you the expertise to stay ahead.
- diversity of the course participants means you will gain a truly international perspective on various issues involving hedge funds
- real life business cases and interactions with participants from all around the world provide new insights
- build a network as programme participants are all active in industry today and will remain great contacts
- gain both academic and practical insights to achieve a balanced perspective
- meet and discuss the latest issues and developments in the hedge fund industry with leading academics and industry professionals.
Benefits to sponsors and employers
Leading business school training brings solid technical expertise to your organisation.
- practical programmes bring immediate benefits: programme participants will be able to apply what they have learnt as soon as they get back to the office
- learning alongside other industry players and discussing real-life business cases will enable them to gain new insights on how to tackle challenges and problems.
Most participants will have some prior knowledge of hedge funds and their investment styles, trading strategies, structures, and compensation methods.
Program taught in: