Subject category:
Finance, Accounting and Control
Originally published in:
2020
Length: 13 pages
Data source: Published sources
Abstract
Gold C@pital is one of the largest and most successful hedge funds and institutional investment managers in the United States. The firm has consistently delivered exceptional guidance to its clients to achieve remarkable results. A new challenge arises because it has to develop a delta hedging program for one of its key clients: The New York City Police Pension Fund. The directors of the pension fund are extremely concerned about the projected negative outlook for the S&P 500 index. They are upset because the pension fund has to make significant pension payments during the following months. If their equity portfolio loses too much value there is no guarantee that such payments will go ahead. Gold C@pital proposes to apply the delta hedging approach to find a suitable solution that satisfies the directors of the fund.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Featured company
Gold C@pital
About
Abstract
Gold C@pital is one of the largest and most successful hedge funds and institutional investment managers in the United States. The firm has consistently delivered exceptional guidance to its clients to achieve remarkable results. A new challenge arises because it has to develop a delta hedging program for one of its key clients: The New York City Police Pension Fund. The directors of the pension fund are extremely concerned about the projected negative outlook for the S&P 500 index. They are upset because the pension fund has to make significant pension payments during the following months. If their equity portfolio loses too much value there is no guarantee that such payments will go ahead. Gold C@pital proposes to apply the delta hedging approach to find a suitable solution that satisfies the directors of the fund.
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Featured company
Gold C@pital