HF Case Study - Projected Balance Sheet Required?
I have a case study for acoming up this weekend. I have done multiple PE case studies before, but have never done a HF case study.
For PE, it was obviously important to modelfor debt paydown, but is this useful for hedge funds? I feel like as a public investor you have no insight into the company's financing plans, so a balance sheet would mostly contain standard assumptions (% of revenue, DSO / DPO / DIO, flatline items) that may not provide meaningful insights.
I'm fairly certain it's going to be a software company, so I was going to model out a deferred revenue schedule and A/R forecast, but was not sure if it was necessary to build out the rest of the balance sheet. My only thought is that building the balance sheet would allowto be calculated easier. I also am thinking that building the balance sheet is probably smart just to show that I can do it. Let me know your thoughts, just want to make sure I am budgeting my time for the case study most efficiently. Thanks.