Hedge Funds may use various types of financial models to evaluate investment ideas and opportunities. Examples of these types of models are discounted cash flow (DCF) analysis, internal rate of return (IRR) analysis, as well as sensitivity and scenario analysis. There is a wide range of hedge fund investment strategies and thus models may vary significantly from fund to fund.
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CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further: