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Lessons

Understand it. Then drill it.

Every lesson covers one interview topic, question type by question type: the intuition, why it works, a worked example with live numbers, diagrams you can move, the same idea run backwards, and a check marked exactly like practice.

Hedge Fund topic lessons

5 of 5 topics ready
Interactive 52 min

Long / Short Equity

How a long/short book is measured, hedged, financed and sized: gross and net exposure, beta-neutral pairs, the cost of shorting, risk budgets, crowding and factor overlap.

  1. 1Gross and net exposure
  2. 2Beta-hedged pair trades
  3. 3The cost of carrying a short
  4. 4Sizing a position to a risk budget
  5. 5Crowding and factor overlap
0 of 5 chaptersStart
Interactive 53 min

Valuation Multiples

How a buy-side analyst prices a stock: EV/EBITDA against P/E, free cash flow yield, growth-adjusted multiples, sum of the parts, and where a stock's return comes from.

  1. 1EV/EBITDA versus P/E
  2. 2Free cash flow yield
  3. 3PEG and growth-adjusted multiples
  4. 4Sum of the parts
  5. 5The multiple bridge
0 of 5 chaptersStart
Interactive 40 min

Event-Driven

How event-driven funds price corporate events: merger arbitrage spreads, break prices, probability-weighted value and rights issues.

  1. 1The merger arbitrage spread
  2. 2Where the stock goes if the deal breaks
  3. 3Probability-weighted value
  4. 4Rights issues and dilution
0 of 4 chaptersStart
Interactive 51 min

Portfolio Risk

How a fund measures and limits risk across the book: portfolio volatility, contribution to risk, beta hedging, Sharpe ratios and leverage, and drawdown limits.

  1. 1Two-asset portfolio volatility
  2. 2Contribution to risk versus capital
  3. 3Hedging the market with index futures
  4. 4Sharpe ratio and leverage
  5. 5Sizing under a drawdown limit
0 of 5 chaptersStart
Interactive 50 min

Credit

How a credit fund prices and protects a loan: yield to worst, what a spread pays for, covenants, recovery analysis and the fulcrum security.

  1. 1Yield to maturity and yield to worst
  2. 2What a credit spread pays for
  3. 3Covenants: the lender's tripwires
  4. 4Recovery analysis
  5. 5The fulcrum security and loan to own
0 of 5 chaptersStart

Put it together

Uses recipes from several topics

Skill lessons string the topic lessons together the way the job does, so each chapter borrows the recipe it needs from wherever it lives.

Skill 70 min

Pitching Stocks (MM)

How a multi-manager long/short analyst builds a pitch: what the price already assumes, your numbers against the street's on a flat multiple, two cases and a probability with a date on them, the hedge, the size, and whether you can get out.

  1. 1Start from the price: what is already in it
  2. 2Your numbers, the target, and the flat-multiple test
  3. 3Risk/reward: two outcomes, a probability, and a date
  4. 4Hedge it: long the idea, short the sector
  5. 5Size it: a risk budget, a stop, and the smaller of the two
  6. 6Before you pitch it: what are you really long, and can you get out?
0 of 6 chaptersStart