Topic You are a portfolio manager of a $50,000,000 hedge fund The fund is currently holding 25 of its assets in US Treasuries, 25 in the SPDR Dow Jones Industrial Average ETF Trust, and 50 in the AMEX Gold BUGS Index (ie , Basket of Unhedged gold Stocks) Your investment is looking to provide its high net worth investors with a minimum 20 return per year over the next 5 years The investors are willing to withhold any fund distributions for the 5 year period What stock, bond, alternative investment or combination of investments would you recommend and why If you pick a company or companies of your choosing, explain why Was it due to your current valuation estimate and or growth prospects Part of your evaluation should include an estimate of the intrinsic value of the investment opportunity You may look at a Bond purchase, Convertible Bond offering, etc If so, explain your rationale and provide calculations arriving to your conclusion Alternatively, you may choose to invest in an options strategy If you decide on an options strategy, explain your interpretation of the value of the underlying asset(s) and how it fits within your strategy This may also include an investment in a new business If so, evaluate the prospectus business plan and provide details on the monetization of the business within the time frame required For all the potential investments, try to identify the risks (including business and financial risk) You may want to consider the underlying business operations of the investment and evaluate areas that the entity may be able to expand and thus, grow into its valuation Depending on the investment, you may need to put together a pro forma set of cash flows to help determine dividends free cash flows for your discount models Are there considerations needed to maintain the current risk profile of the overall portfolio What are your assumptions The use of market performance metrics should be highlighted (eg , EPS, P E, Dividend Payout, ROE, etc ) along with a trend analysis underscoring changes in the underlying business or industry

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Topic : You are a portfolio manager of a $50,000,000 hedge fund. The fund is currently holding 25% of its assets in US Treasuries, 25%

Topic: You are a portfolio manager of a $50,000,000 hedge fund. The fund is currently holding 25% of its assets in US Treasuries, 25% in the SPDR Dow Jones Industrial Average ETF Trust, and 50% in the AMEX Gold BUGS Index (ie., Basket of Unhedged gold Stocks).

Your investment is looking to provide its high net worth investors with a minimum 20% return per year over the next 5 years. The investors are willing to withhold any fund distributions for the 5 year period. What stock, bond, alternative investment or combination of investments would you recommend and why?

If you pick a company or companies of your choosing, explain why. Was it due to your current valuation estimate and/ or growth prospects? Part of your evaluation should include an estimate of the intrinsic value of the investment opportunity.
You may look at a Bond purchase, Convertible Bond offering, etc. If so, explain your rationale and provide calculations arriving to your conclusion.
Alternatively, you may choose to invest in an options strategy. If you decide on an options strategy, explain your interpretation of the value of the underlying asset(s) and how it fits within your strategy.
This may also include an investment in a new business. If so, evaluate the prospectus/ business plan and provide details on the monetization of the business within the time frame required.
For all the potential investments, try to identify the risks (including business and financial risk). You may want to consider the underlying business operations of the investment and evaluate areas that the entity may be able to expand and thus, grow into its valuation? Depending on the investment, you may need to put together a pro forma set of cash flows to help determine dividends/ free cash flows for your discount models.
Are there considerations needed to maintain the current risk profile of the overall portfolio? What are your assumptions?
The use of market performance metrics should be highlighted (eg., EPS, P/E, Dividend Payout, ROE, etc.) along with a trend analysis underscoring changes in the underlying business or industry.