Alternative Investments


Real Estate Investments (CFA Level I Suggested Reading)

  • Characteristics of various types of real estate assets
  • Calculation of the after-tax cash flow and the after-tax equity reversion from real estate
  • Application of NPV and IRR for real estate investment analysis
  • Limitation of the IRR approach
  • The main value determinants, investment characteristics, principal risks, and the most likely investor type for real estate investments

Private Equity (CFA Level I Suggested Reading)

  • Importance of private equity markets
  • Structure of the organized private equity market
  • Characteristics of a limited partnership, and discuss the role of limited partnerships in the private equity market
  • Relationship between limited partners and general partners

Venture Capital (CFA Level I Suggested Reading)

  • What is a venture capital fund and how it works
  • General partners versus limited partners
  • How venture capitalists add value
  • Potential conflicts between entrepreneur, venture capitalist, and investors

Commodity Investments (CFA Level I Suggested Reading)

  • Relationship among inflation (levels and changes) and commodities, stocks, and bonds
  • Implications of event risk for commodities with those for financial assets
  • Sources of return for an unleveraged commodity futures index
  • Composition and characteristics of various commodity indexes
  • Impact of the addition of commodity futures to a traditional stock and bond portfolio

Distressed Debt Investing

  • The objectives of distressed debt investors
  • The bankruptcy process
  • Process for investing in distressed buyouts
  • Pre-packaged bankruptcies and using distressed debt for a takeover
  • Constructing a distressed debt arbitrage
  • Return distribution and risks of distressed debt investing

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