...Robert F. Bruner In January 1996, an investment manager of a hedge fund is considering purchasing an equity interest in a start-up biotechnology firm, Rocky Mountain Advanced Genome (RMAG). The asking price is $46 million for a 90% equity interest. Although managers of the firm are optimistic about...

...Pedro Matos In early January 2008, a senior VP with LAAMCO, a fund of hedge funds known for alternative investments, was conducting due diligence on an equity market-neutral hedge fund. The hedge fund used an option strategy known as a collar (also known as a bull spread or split-strike conversion...

... to discuss potential hedges. Sufficient detailed information is provided for the students to construct and analyze both a forward and money market hedge. A teaching note and instructor and student Excel spreadsheets are available. This case was prepared by Associate Professor Marc Lipson. It was written...

..., photocopying, recording, or otherwise-without the permission of the Darden School Foundation. Rev. 6/98. corporate financial strategy acquisitions bargaining/bidding forecasting hedging joint ventures option pricing diversity international The expected performance of RPR was of crucial...

...Kenneth M. Eades Delta Beverage is facing severe cost control problems. In addition to the high interest expense, the cost of aluminum cans and PET containers have risen substantially during the past year. The student must decide whether the CFO should hedge aluminum to avoid the risk of violating...

...Pedro Matos In early 2012, an equity analyst, was examining the jet fuel hedging strategy of JetBlue Airways for the coming year. Because airlines cross-hedged their jet fuel price risk using derivatives contracts on other oil products such as WTI and Brent crude oil, they were exposed to basis...