Quantitative Case Study

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Client Background: our client, a quantitative hedge fund, needed to evaluate an investment opportunity which required a comprehensive loss analysis model for a pool of several thousand auto loans. As the client’s resources were already fully committed evaluating other opportunities, it asked Copal to provide immediate assistance. Subsequently, the hedge fund’s relationship with Copal has expanded to a team of 10 dedicated financial modeling professionals to servicing the client.

Services offered: Copal began working for the client by executing a Monte Carlo simulation model that calculated the range of returns based on a large number of potential outcomes. This initial project was successful, resulting in increased use of Copal for a wider range of projects, many involving the construction of a customized investment strategy or analysis model. Other services provided include primary data gathering using market surveys and econometric models with sensitivity analyses.

Results: the client was able to quickly make a well-informed investment decision on the structured debt it needed to evaluate. Eventually, as the client increasingly and more consistently utilized Copal’s dedicated team of professional financial analysts and advisors it became much more operationally efficient throughout its entire organization. As a result, the client was able to conduct more detailed evaluations of a larger number of investment opportunities without incurring significant costs.

Contact us: hedge.fund@copalpartners.com