Hedge Fund Fundamentals

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 how to measure performance using various metrics such as the Sharpe and information ratios. Lastly, the course provides insight into several hedge fund strategies, which are either directional, arbitrage, or global macro. After completing this course, you will have a better understanding of the hedge fund universe and the role they play in the financial markets.

Upon completing this course, you will be able to:

• 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

Hedge Fund Fundamentals is an elective course of CFI’s CMSA® program

CFI’s Capital Markets & Securities Analyst (CMSA)® program covers all the foundational, intermediate, and advanced topics about sales and trading, investment banking, and asset management. This program teaches you trading strategies used in the finance and capital markets industry. It is ideal for students who want to learn how to trade different asset classes. The program is completely online so that you can take it at your own pace, from anywhere in the world.

Common career paths for students who take the CMSA® are Sales & Trading, Asset Management, Wealth Management, Treasury, Risk Management, and other capital markets careers.

Who should take this CMSA® 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.