Hedge Fund Practice Exam

About Hedge Fund
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated.

Hedge funds are regarded as alternative investments. Their ability to make more extensive use of leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, such as mutual funds and ETFs. They are also considered distinct from private-equity funds and other similar closed-end funds, as hedge funds generally invest in relatively liquid assets and are generally open-ended, meaning that they allow investors to invest and withdraw capital periodically based on the fund's net asset value, whereas private-equity funds generally invest in illiquid assets and only return capital after a number of years. However, other than a fund's regulatory status there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a "hedge fund".

Hedge Fund has gained immense popularity across the globe resulting in huge demand for certified professionals.

Why is Hedge Fund important?
Hedge funds are important is because they perform the role of linking capital with capital needs, which is a vital market function.

Hedge funds can manage of a lot of money (some manage billions of dollars) and how this money is managed can have a significant positive or negative impact on markets, different market segments and many people’s lives.

Hedge funds create demand for different types of assets helps set and regulate asset prices, which is important in financial markets to determine the appropriate relationship between asset risk and asset price.

Hedge funds have their strategy to achieve target returns regardless of whether the market is going up or down through taking combinations of long and short positions. It reduces market return volatility.

Hedge Fund certified professionals, executives and managers are in high demand in companies across the globe.

Important Concepts for Hedge Fund Practice Exam

• Hedge Fund Basics
• Market Participants
• Funds-of-Funds
• Hedge Funds Regulations
• Growth opportunities
  

Who should take the Hedge Fund Exam?
•    Finance professionals
•    Entrepreneurs
•    Anyone who wants to assess their hedge funds skills
•    Finance managers and senior executives
•    Investment or finance consultants
•    Any professional with skills and knowledge on hedge funds
•    Anyone who wants to learn the hedge funds skills
•    Individuals who encounters hedge funds within their day-to-day job

Hedge Fund Practice Exam Objectives

Hedge Fund exam focuses on assessing your skills and knowledge in concepts and managing hedge funds.

Hedge Fund Practice Exam Pre-requisite

There are no prerequisites for the Hedge Fund exam. Candidate should be well versed  in managing hedge funds to clear the exam.

Hedge Fund Certification Course Outline

1. Introduction to Hedge Fund
1.1 Equity Funds
1.2 Arbitrage Funds
1.3 Directional Funds
1.4 Event-Driven Approach

2. Player and Participants
2.1 Description about Players in the Market

3. Funds-of-Funds
3.1 Outlook
3.2 Structured Products
3.3 Multi-Strategy Vs Funds-of-Funds

4. Regulations of Hedge Funds
4.1 Supervision Approach
4.2 Structure of Hedge Funds
4.3 Primary Brokers
4.4 Risk Management

5. Pros and Cons of Hedge Funds
5.1 Role of Hedge Funds
5.2 Investor Return
5.3 Bell Curve of Returns

6. Future of Hedge Funds
6.1 Consolidation
6.2 130-130 Funds
6.3 Permanent/Fixed Capital
6.4 Fees and Cloning
6.5 Strategies for Future
6.6 Growth opportunities

Exam Format and Information
Certification name – Hedge Fund Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199