405Course · Professional

Hedge Funds

The vehicle, and the strategies inside it.

The Course

Hedge funds are a vehicle, not a strategy. This course teaches the structure, the fee model, and the taxonomy of strategies inside the vehicle.

You will finish able to read a fund's monthly letter with appropriate skepticism.

Outcomes
  • 01

    Distinguish hedge-fund strategies at a working level.

  • 02

    Read a fund's monthly letter with skepticism.

  • 03

    Understand the fee structure and its incentives.

Prerequisites
  • 402 — Private Markets.
Pacing

1 week · ~3 hours.

  • IModule · ~1.5 hours.

    The vehicle

    What a hedge fund is, structurally.

    Master-feeder, side pockets, gates — the vehicle's design determines investor experience.

    What You Will Be Able To Do
    • Explain the vehicle mechanics.
    • Read the fee terms.
    • Judge redemption rights.
    Why here

    Vehicle design matters more than strategy claims for most investor outcomes.

    1. 01Master-feeder, side pocket, gateArticle12m
    2. 02The fee structureArticle12m
  • IIModule · ~1.5 hours.

    Strategy families

    The taxonomy of the industry.

    The taxonomy — long/short, event-driven, macro, systematic — organizes the industry.

    What You Will Be Able To Do
    • Name the strategy families.
    • State each family's claim.
    • Judge the claim honestly.
    Why here

    The families cluster returns, fees, and risks in predictable ways.

    1. 01Long/short, event-driven, macro, systematicArticle12m
A Note from the Faculty

Two-and-twenty deserves an honest defense — and, more often, an honest refusal.