Hedge Fund Fundamentals

In Capital Markets, many of the best and the brightest aspire to work in a hedge fund. Get yourself started and pry open the covers to learn about this exciting industry.

Explore how hedge funds are organized
Understand how and why hedge fund managers are so well paid
Discover the investment strategies that hedge funds employ

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Corporate Finance Institute

Hedge Fund Fundamentals

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:

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.

What you'll learn

Lesson

Multimedia

Exams

Files

Course Introduction

Course Introduction Free Preview

Learning Objectives Free Preview

Downloadable Files

Hedge Fund Overview

What Is a Hedge Fund Free Preview

Hedge Funds vs. Traditional Funds Free Preview

Alfred Jones' Fund

Interactive Exercise 1

Leverage Overview

Leverage Example

Interactive Exercise 2

Performance Measurement

Sharpe Ratio Introduction

Sharpe Ratio Example

Information Ratio Example

Interactive Exercise 7

Which Fund (Sharpe Ratio)

Which Fund (Information Ratio)

Sharpe & Information Ratio Calculators

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

Arbitrage Strategies

Fixed Income Arbitrage Overview

Yield-Curve Arbitrage Example

Treasury Arbitrage Overview

Treasury Arbitrage Example

Treasury Arbitrage Answer

Leverage in Arbitrage Trading

Interactive Exercise 9

Event-Driven Strategies

Global Macro Strategy Overview

Global Macro Strategy Example

Global Macro Strategy Example Profit

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 42 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

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What our students say

Great Course for beginners

shahsta mostafa

Great course
Teach me a lot about hedge fund fee structure as well as different strategies used by hedge fund

Minh Tuong

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!

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

Ibrahim Alghamdi

Mr Powell nailed the topic
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.

Donald Patrick Okumu Ringa

Hedge Fund Fundamentals
The course is rich in content and well delivered. Would recommend taking this course.

Carlos Fernandes

Simplicity and Clarity
The Hedge Fund Fundamental Course is a great way to understand the fundamentals of this complex subject. All the sessions are very simple to understand and CFI videos bring clarity on the subject. The exam in the end also tests the students understanding of the subject. Well done team CFI

Amit Karode

Keep practicing
If you keep practicing and learning the lecture videos, you will obtain significant amount of knowledge from this special course.

Atinafu Asefa

Experience
Nice breakdown of course material

Newton Wachira

Relevant Course
Good comprehensive course on hedge funds. I learned a great deal during this course.

Desire Matabane

CFI courses are always excellent source of knowledge in finance, delivered in a practical and straight to the point teaching method.

Love Manigsaca

Excellent Presentation
the course is presented in a well simplified and easy to understand version covering all necessary points on hedge fund fundamentals. The calculations are also presented in an easily understood format

Charles Karanja Wamaitha

Great learning material
The lecturer presents the topic in such a interesting and informative way.

Auron Illing

Fun and profitable information
This is great education for many ages of people.

caleb jardot

Brilliant Course!
You know that you have stricken gold, when you are reading about Yield-curve arbitrage and Treasury Arbitrage and then next thing you read the news about BOE buying back bonds to stabilize the market and save pension funds from huge losses and understand fully why this has happened.

Konstantinos Lekkas

Amazing course thanks CFI Team give this valuable knowledge
Amazing course thanks CFI Team give this valuable knowledge

Nakul Vijay

Concise, comprehensive & Short
Amazing course help me to get better understanding regarding Hedge Fund.

Muhammad Arslan

Amazing
Great Course to explore the mechanics of Hedge Funds

Manoj Kumar P

Nice Learning Experience
Great Videos, fun to learn

Oliver Pang

Good
Courses are well structured and the lecturers are quite engaging. A very knowledgeable group of individuals indeed. I thoroughly enjoy learning the syllabus as it's directly related to the financial services market i.e. more pragmatic than theoretical. Finally, I honestly believe that CFI courses are effectively preparing me to be a most efficient finance professional. CFI is worth EVERY dollar spent.

LOUIS BOBB

Great content and detail
Great layout, content and detail

Kellee Lapallo

Good for all investors
A great course for hedge funds

Kwong Sang Yeung

Introduction to Hedge Funds
It is an amazing source of knowledge and helped a lot in having a better understanding about the industry.

Gabriel Rosmeteniuc

Great
No exercises were given

Alhassan Ndekugri

Great
No exercises were given

Alhassan Ndekugri

Introduction to Hedge Funds

Massimiliano Mauriello

Good lesson

MICHEL WAKENGE KYALONDAWA

Frequently asked questions

What are the requirements to take the courses?

All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements

Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

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You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.

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Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.

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Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

How are the exams conducted?

Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment

Can I email the instructor if I have questions?

While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.

Will these courses help me advance my career?

Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.

Hedge Fund Fundamentals

Overview

Hedge Fund Fundamentals Course Overview

Who should take this course?

Hedge Fund Fundamentals

Get Recognized With CFI

What you'll learn

This Course is Part of the Following Programs

What our students say

shahsta mostafa

Minh Tuong

PETER FERNANDEZ

Ibrahim Alghamdi

Stephen Akinosi

Donald Patrick Okumu Ringa

Carlos Fernandes

Amit Karode

Atinafu Asefa

Newton Wachira

Desire Matabane

Love Manigsaca

Charles Karanja Wamaitha

Auron Illing

caleb jardot

Konstantinos Lekkas

Nakul Vijay

Muhammad Arslan

Manoj Kumar P

Oliver Pang

LOUIS BOBB

Kellee Lapallo

Kwong Sang Yeung

Gabriel Rosmeteniuc

Alhassan Ndekugri

Alhassan Ndekugri

Massimiliano Mauriello

MICHEL WAKENGE KYALONDAWA

Frequently asked questions

Get certified for Capital Markets (CMSA)®