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Approx 380 hours of Core Learning
Comprehensive revision of the entire curriculum in ~100 hours for Platinum and Platinum Plus Packages.
Hard Copy Study Material for self-practice
PDF Class Notes To Make Optimum Use of Their Prep-time
1 Full CBT Mock for Gold Package, 2 Full CBT Mock for Platinum Package and 4 Full CBT Mock for Platinum Plus Package
Complimentary Course - Advanced Excel & Financial Modelling
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Welcome to the first warm-up session of the CFA Level 2 Alternate Investments series, focusing on hedge fund strategies. This class builds directly upon your CFA Level 1 knowledge of hedge funds and sets the foundation for deeper exploration at Level 2.
In this class, we revisit the fundamentals of hedge funds and move forward into the sophisticated realm of strategy-based investing, including topics such as:
🔹 What is a hedge fund?
🔹 Key characteristics and classifications of hedge funds
🔹 Sources of hedge fund returns: Alpha vs Beta
🔹 Fee structure of hedge funds (Management Fee & Incentive Fee)
🔹 Evolution of hedge fund strategies (now shifted from CFA Level 3 to Level 2)
📈 Detailed Strategy Discussions Include:
💡 Convertible Bond Arbitrage
How undervalued convertibles create opportunity
Short selling the underlying stock to eliminate directional exposure
Real-world example of the Citadel fund and its origins
Market saturation & the downfall of the strategy
💡 Merger Arbitrage Strategy
Going long on the target, short on the acquirer
Understanding deal risk, event-driven exposures, and payoff calculations
Use of options to hedge the deal risk
🎯 Learn how hedge funds aim for absolute return and focus on generating alpha, not beta. Discover why fund managers are paid high fees only for delivering true performance that’s uncorrelated with traditional market benchmarks.
👨🏫 This lecture also traces the historical roots of hedge funds, from Alfred Winslow Jones in 1949 to modern-day strategy evolution.
📌 Who Should Watch This Video?
CFA Level 2 candidates
Finance students exploring hedge fund strategies
Aspiring portfolio managers and analysts
Anyone curious about real-world hedge fund mechanisms
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