Case Detail

Case Summary

Extraordinary Value Partners, LLC

Case Number: 5-307-508, Year Published: 2007

HBS Number: KEL325

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Authors: Ravi Jagannathan; Pengjie Gao; Eric Green

Key Concepts

Portfolio Performance Attribution/Evaluation, Return-Based Style Analysis, Long-Short Investing, Use of Mean Variance Optimization

Abstract

Sun Charities has an endowment of $100 million. Parker, the Chief Investment Officer of Sun Charities, has an opportunity to invest in Extraordinary Value Partners (EVP), a hedge fund. He is considering investing $10 million in EVP. How should he evaluate the investment opportunity? Learning Objective: Application of return-based style analysis to evaluate the performance of a long-short equities hedge fund. Use of mean-variance portfolio optimization for deciding how much to invest in the long-short fund.

Number of Pages: 9

Extended Case Information

Teaching Areas: Finance

Geographic: United States

Industry: Institutional Investor

Organization Name: Sun Charities

Organization Size: Small

Decision Maker Position: Chief Investment Officer

Decision Maker Gender: Male

Year of Case: 2007