In this Hedge Funds Simulation, participants act as fund managers - designing strategies, managing portfolios, and responding to volatility while balancing risk, leverage, and investor expectations in highly competitive financial markets.
Participants step into the role of hedge fund managers navigating dynamic markets. Each round introduces new challenges - market swings, investor demands, regulatory scrutiny, or competitive strategies from rival funds.
They must allocate capital, balance long and short positions, apply leverage responsibly, and decide when to pivot strategies. The simulation emphasizes decision-making under uncertainty, blending technical analysis with investor psychology.
This simulation is ideal for university programs, executive training, and corporate workshops. It brings hedge fund strategy to life, showing how performance, risk, and reputation interact in real-world fund management.
Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:
Hedge fund structures and strategies (long/short, global macro, arbitrage)
Portfolio construction and risk management
Leverage and liquidity management
Market timing and tactical asset allocation
Regulatory and compliance issues in hedge funds
Investor relations and fundraising dynamics
Impact of market shocks on portfolios
ESG considerations in hedge fund strategies
Performance measurement and fee structures
Competition and reputation in asset management
Choose investment strategies tailored to market conditions
Construct and rebalance portfolios with long/short positions
Manage leverage, liquidity, and investor expectations
Respond to shocks like volatility spikes or regulatory shifts
Pitch performance updates to investors and stakeholders
Reflect on strategy effectiveness and adaptability
By the end of the simulation, participants will be able to:
Understand hedge fund structures and operating models
Apply long/short and other common hedge fund strategies
Manage portfolio risk with leverage and liquidity tools
Respond effectively to market shocks and investor demands
Balance risk-adjusted returns with reputation and compliance
Communicate performance clearly to investors
Recognize the role of hedge funds in financial markets
Explore ESG integration in hedge fund strategies
Develop judgment under conditions of volatility and uncertainty
Build confidence in fund management decision-making
The simulation’s flexible structure ensures that these objectives can be calibrated to match the depth, duration, and focus areas of each program, whether in higher education or corporate learning.
1. Receive a Scenario or Brief: Participants are introduced to a market environment with opportunities and risks.
2. Analyse the Situation: They review market data, fund mandates, and investor expectations.
3. Make Strategic Decisions: Participants choose investment strategies, adjust positions, and set risk levels.
4. Collaborate Across Roles: Teams may act as fund managers, analysts, or investors negotiating priorities.
5. Communicate Outcomes: Participants deliver investor updates, memos, or strategy presentations.
6. Review and Reflect: Feedback highlights performance, risk exposure, and investor sentiment. Strategies evolve across rounds.
Who is this hedge funds simulation designed for? It's ideal for participants interested in asset management, hedge funds, trading, or institutional investing.
Do I need prior trading experience? No prior experience is required. The hedge funds simulation includes instructional content for all levels.
How long does the hedge funds simulation run? Typically 3-4 hours, though it can be delivered in shorter modules or extended formats.
Is the hedge funds simulation individual or team-based? It supports both formats and is designed to reflect real hedge fund team dynamics.
What strategies are covered? Long/short equity, market neutral, global macro, event-driven, and more.
Are real-world datasets used? Yes. Participants work with simulated market data based on historical and real-time financial scenarios.
Can instructors customize the hedge funds simulation? Absolutely. Strategy focus, portfolio limits, and industry sectors can be tailored.
How is performance measured? Based on returns, volatility, Sharpe ratio, risk control, and investor communication.
What roles does this hedge funds simulation prepare participants for? It prepares participants for careers in hedge funds, asset management, trading, portfolio analytics, and more.
Assessment can be tailored to focus on financial performance, strategy, or communication. Participants may be evaluated on:
Portfolio performance and risk-adjusted returns
Effective use of hedge fund strategies
Responsiveness to volatility and market shocks
Investor communication clarity and persuasiveness
Collaboration and adaptability in fund management
You can also include memo writing and debrief presentations as part of the assessment structure. Additionally, you can also add a built-in peer and self-assessment tool to see how participants rate themselves. This flexibility allows the simulation to be easily integrated by professors as graded courses at universities and by HR at assessment centres at companies.
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.
or
Book a 15-minute Zoom demo with one of our experts to explore how the simulation can benefit you.