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Professional Development Courses on 
Finance, Banking, Investment Protection, and Shareholders' Rights

online, in-class, or video lessons (self-paced)

Prime Finance and Hedge Fund Trading Strategies Specialization Course

This Specialization consists of 4 courses. The course will introduce you to the common hedge fund trading strategies, hedging and pay-offs, and introducing the concept of leverage to generate “alpha” returns. 
 

It is recommended that you take the full specialization, or you can choose to take individual courses of your interest. 


Each course consists of several sections and modules, there are quizzes at the end of each section and a test at the end of each module. 


Some courses may require you to pass each quiz and test before moving onto the next section and module. 

Prime Finance 

Course Overview

 

The course will cover how a Prime Finance department is structured within an investment bank, to support hedge fund trading strategies.

This will include:

  • Prime Brokerage department that finances hedge funds and provides leverage through cash loans on margin accounts.

  • Risk Management to monitor the risks associated with the loans and margin financing.

  • Stock Lending desk who locate borrows for short selling, and perform securitized lending to raise cash to enable margin loans.

  • Capital Introduction team who raise seed capital to hedge fund startups.

  • Sales and Trading to sign up new clients and facilitate their trading activity on an exchange or through other brokers.

  • Operations and Support teams that take care of all the post-trade activities, from settlements, reconciliations, corporate event and income processing, margin, treasury, legal, and compliance.

Learning Outcome

This will provide students with a full understanding of the process flows, and how each individual unit supports the ongoing activities of a hedge fund.

Hedge Fund Trading Strategies

Course Overview

Building on the understanding of the Prime Finance department's support functions, the course then examines the various hedge fund trading strategies, their risk/reward payoffs, how they are calculated, and how they are facilitated by the Prime Finance Department.

Students will learn about how borrowing stock for short selling, utilizing leverage to build up long positions, and how different hedging techniques can be combined to meet the different investment goals of hedge funds.

Learning Outcome

They will develop an understanding of how hedge funds can produce positive returns under different market conditions, what securities they trade for each strategy, and how they hedge against risks.

Leverage and Margin Financing

Course Overview

In this topic students will gain an in-depth knowledge of what leverage is, the risks involved, and how it is all calculated. They will learn the mathematics behind the margin financing calculations, and what this means for hedge funds who have an excess or a margin call. Haircuts, Equity, Mark-to-Market Pricing will be explained to provide a full understanding of how leverage is used and margin financing is performed.

Additionally, we will look in detail at how securitized lending and the money markets fit into the leverage and financing of hedge funds, to provide competitive interest rates. This will cover Rehypothecation and the Treasury Department to round off this topic, and give learners a full understanding of how hedge funds are able to operate. This will explain why hedge funds do not use traditional finance and have to seek out a Prime Broker to facilitate their operations.

Learning Outcome

students will learn through real case studies how hedge funds and their lenders the Prime Brokerage departments can blow up using examples such as Long Term Capital Management and the recent Archegos losses incurred by many investment banks.

Income and Asset Servicing

Course Overview

In the final topic, we examine an important function to support the administration of hedge funds. Hedge funds will trade around dividends, rights issues, acquisitions, etc, so this is an important area to understand the impacts on hedge fund performance, strategies, and administration of their accounts.

We will discuss the different types of corporate actions, to cover a broad range of events such as dividends, coupons, mandatory and voluntary events that impact hedge funds on their positions in different ways depending on if they are long and short.

Learning Outcome

All of these topics combine to provide students with a rounded knowledge of the investment landscape for hedge funds, and the crucial role the Prime Finance department takes in enabling these strategies.

Qalqon believes in providing quality education in all areas of finance and banking. We are continuously inviting professionals and academics to join our Fintech community to provide the most up-to-date news, knowledge, tools, and publications on finance and shareholders' rights. 

We cooperate with several institutions to provide courses on finance, investments, shareholders' rights, securities class action lawsuits. If your organization is interested in educating your employees in these areas, please contact us for more details.  

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