The hedge fund utilized an option strategy labeled as a collar (further known as a bull spread or rent-strike conversion). The track record of the hedge fund was leading.
The fund's performance had not only conquered that of the S&P 500 Index over the same period but had done so with substantially lower monthly volatility return. Being a particular section of the due diligence, it was crucial to backtest the collar strategy and try to compute how much value the supervisor, BLM Investment Securities, LLC, (BLM) had added. The case is a concealed representation of a real hedge fund-the accurate individuality of BLM is revealed to pupils at the conclusion of the case discussion.
PUBLICATION DATE: June 21, 2013 PRODUCT #: UV6686-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
