Hedge Funds
Hedge fund analysts and PMs research investment ideas and size positions to generate returns for the fund's investors — the mandate varies widely (long/short equity, macro, credit, and more).
Expected value judgment, bet sizing, and the trading intuition long/short and macro funds test for.
Games for this track
Take it, or pass?
Expected Value Challenge
You're offered a bet with a win amount, a loss amount, and a probability. Decide fast whether the expected value says take it.
Relevance ★★★★★
How much of your bankroll?
Kelly Criterion
Given an edge and the payout odds, compute the Kelly-optimal fraction of your bankroll to bet.
Relevance ★★★★★
Which bet actually pays more?
Optimization Challenge
Two bets, one choice. Compute the expected value of each and pick the one that actually maximizes it.
Relevance ★★★★★
Quote a bid and ask. Wear the risk.
Market Making
Post a bid/ask spread against a hidden fair value. Counterparties trade against you — a tight, well-centered quote wins; a wide or mispriced one loses.
Relevance ★★★★★
Buy here, sell there, mark it now.
Trading P&L Sprint
Track a rapid sequence of buys and sells at an average cost basis, then compute realized, unrealized, or total P&L before time runs out.
Relevance ★★★★★
Fair coin, or biased?
Bayesian Updating
Start at a 50/50 prior, observe a sequence of flips, and update to the correct posterior probability.
Relevance ★★★★★