Overview
Hedge Fund Fundamentals Course Overview
This course covers a comprehensive overview of hedge funds. You will learn the common characteristics of hedge funds, how they are structured, and the mechanics of management and performance fees. You will also learn to measure performance using metrics such as the Sharpe and information ratios. Lastly, the course provides insight into several hedge fund strategies: directional, arbitrage, or global macro. After completing this course, you will better understand the hedge fund universe and its role in the financial markets.
Hedge Fund Fundamentals Learning Objectives
Upon completing this course, you will be able to:
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- Define the characteristics associated with a typical hedge fund
- Describe the structure of a hedge fund, the services it requires, and the investors it attracts
- Calculate management and performance fees based on high-water mark and hurdle clauses
- Assess hedge fund performance using key metrics such as the Sharpe and information ratios
- Understand the short-selling process and long/short equity strategies
- Identify fixed income arbitrage and event-driven strategy opportunities
Who should take this course?
This introductory hedge fund course is perfect for anyone interested in learning a comprehensive overview of hedge funds. These types of funds are becoming increasingly popular, so it’s essential to understand the role these institutions play in the financial markets. Anyone interested in a career in the capital markets should ensure they understand how hedge funds operate, how they are structured, and how they impact the markets.
Get Recognized With CFI
See All Certification ProgramsWhat you'll learn
Lesson
Multimedia
Exams
Files
Course Introduction
Hedge Fund Structures
Hedge Fund vs. Corporate Structure
LPs and GPs
Interactive Exercise 3
Hedge Fund Management Company
Hedge Fund Manager Background
Prime Services
Executing Broker
Interactive Exercise 4
Offshore and Mirror Funds
Funds of Hedge Funds
Limited Partner's Interest Example
Redemptions, Liquidity and Restrictions
Interactive Exercise 5
Hedge Fund Fees
Management Fee Example
High-Water Mark
High-Water Mark Example
Hurdle Rate
Hurdle Rate Example
Interactive Exercise 6
Fund Fee & Ownership Calculators
Midway Check In
Directional Strategies
Short Strategy
Covered vs. Naked Short
Short Selling Risks
Long and Short Equity Overview
Pairs Trading
Long and Short Equity Mechanics
Interactive Exercise 8
Convergence vs. Divergence
Long and Short Question 1
Long and Short Answer 1
Long and Short Question 2
Long and Short Answer 2
Long & Short Calculator
Event-Driven Strategies
Course Summary
Qualified Assessment
This Course is Part of the Following Programs
Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.
All Capital Markets & Securities Analyst (CMSA)® Courses
Hedge Fund Fundamentals is part of the Capital Markets & Securities Analyst (CMSA)® certification, which includes 41 courses.
- Skills Learned Trading strategies used in the finance and capital markets
- Career Prep Work in capital markets, whether on the buy-side or the sell-side
What our students say
Wonderful
Among all the Course Subjects with CMSA, this was so far the best course took on by me. Thank you CFI for this Subject!
Among all the Course Subjects with CMSA, this was so far the best course took on by me. Thank you CFI for this Subject!
PETER FERNANDEZ
Robotic Voice
Why every course in CFI is like a robot talking? please, the human vocal cords are amazing and more comfortable than robots, just leave the voices unchanged
Why every course in CFI is like a robot talking? please, the human vocal cords are amazing and more comfortable than robots, just leave the voices unchanged
Ibrahim Alghamdi
Mr Powell nailed the topic
Looking forward to taking advanced Hedged Funds Topics
Looking forward to taking advanced Hedged Funds Topics
Stephen Akinosi
AWESOME
Definitely recommend this course for those interested in setting up their own Hedge Fund or simply managing one or being a limited Patrner. Thank you for a wonderful insight.
Definitely recommend this course for those interested in setting up their own Hedge Fund or simply managing one or being a limited Patrner. Thank you for a wonderful insight.
