Alternative Investments

Alternative Investments: CAIA Level I, 4th Edition is the curriculum book for the Chartered Alternative Investment Analyst (CAIA) Level I professional examination. Covering the fundamentals of the alternative investment space, this book helps you build a foundation in alternative investment markets. You'll look closely at the different types of hedge fund strategies and the range of statistics used to define investment performance as you gain a deep familiarity with alternative investment terms and develop the computational ability to solve investment problems. From strategy characteristics to portfolio management strategies, this book contains the core material you will need to succeed on the CAIA Level I exam. This updated fourth edition tracks to the latest version of the exam and is accompanied by the following ancillaries: a workbook, study guide, learning objectives, and an ethics handbook.

Autorentext

DONALD R. CHAMBERS, PhD, CAIA, is Associate Director of Programs at the CAIA Association, Chief Investment Officer of Biltmore Capital Advisors, and Emeritus Professor at Lafayette College in Easton, Pennsylvania. Dr. Chambers previously served as Director of Alternative Investments at Karpus Investment Management. He is a member of the editorial board of the Journal of Alternative Investments. MARK J. P. ANSON, PhD, CAIA, CFA, CPA, JD, is Chief Investment Officer for Commonfund. Prior to joining Commonfund, he was the President and Chief Investment Officer of the Bass Family Officewinner of the Family Office of the Year award for 2014-2015. Dr. Anson previously served as President and Executive Director of Investment Services at Nuveen Investments Inc., Chief Executive Officer of both the British Telecom Pension Scheme and its wholly owned asset management company in London, Hermes Pension Management Limited, and Chief Investment Officer at California Public Employees' Retirement System. He has published over 100 research articles in professional journals, has won two Best Paper Awards, is the author of six financial textbooks, and sits on the editorial boards of several financial journals. KEITH H. BLACK, PhD, CFA, CAIA, FDP is a managing director at the CAIA Association overseeing content strategy. He was previously an associate at Ennis Knupp and prior, an assistant professor at Illinois Institute of Technology. He is a member of the editorial board of the Journal of Alternative Investments. HOSSEIN B. KAZEMI, PhD, CFA, is co-founder of and the Senior Advisor for the CAIA Association. Dr. Kazemi is the Michael and Cheryl Philipp Distinguished Professor of Finance at Isenberg School of Management, the University of Massachusetts Amherst, the Director of the Center for International Securities and Derivatives Markets, and editor of the Journal of Alternative Investments and Alternative Investment Analyst Review.

Klappentext
Alternative Investments: CAIA Level I The official reading for the CAIA Level I exam "As the array of offerings continues to grow in the world of alternative investments, many asset classes have morphed more into industries, accompanied by a widening breadth of risk profiles and performance dispersion. Value will accrue to the astute and patient investor, and the CAIA Level I curriculum is an outstanding source for needed education." Elena Manola-Bonthond, PhD, CAIA, Chief Investment Officer, CERN Pension Fund "We have seen extraordinary interest and growth in alternative risk premia over the last decade. Investors continue to either seek better risk-adjusted returns through a widening set of uncorrelated offerings, or to access an asset class or strategy that is expected to produce higher absolute returns in the current low-yield environment. Regardless of motivation, financial education has never been more important, and the CAIA Association Level I textbook is an essential read for all investors." Valerie Sill, CFA, CAIA, President and Chief Executive Officer, Dupont Capital Management "While the first hedge fund may have been formed 80 years ago, wider institutional adoption of these and other alternative investments has mainly been a feature of the most recent 20 years. The CAIA Association and their important educational mandate is ever more relevant in this Fourth Edition text. It is essential foundational reading for investment professionals who wish to succeed in today's complex world." David George, CFA, CAIA, Deputy Chief Investment Officer, Public Markets, Future Fund Management Agency Seasoned professionals looking to explore new areas within the alternative investment arena, as well as new industry participants seeking to establish a solid understanding of alternative investments, will find that Alternative Investments: CAIA Level I is the best way to achieve these goals, and the smartest way to prepare for the CAIA Level I exam.

Zusammenfassung
Alternative Investments: CAIA Level I, 4th Edition is the curriculum book for the Chartered Alternative Investment Analyst (CAIA) Level I professional examination. Covering the fundamentals of the alternative investment space, this book helps you build a foundation in alternative investment markets. You'll look closely at the different types of hedge fund strategies and the range of statistics used to define investment performance as you gain a deep familiarity with alternative investment terms and develop the computational ability to solve investment problems. From strategy characteristics to portfolio management strategies, this book contains the core material you will need to succeed on the CAIA Level I exam. This updated fourth edition tracks to the latest version of the exam and is accompanied by the following ancillaries: a workbook, study guide, learning objectives, and an ethics handbook.

Inhalt

Preface xxxiii

Acknowledgments xxxvii

About the Authors xli

Part 1 Introduction to Alternative Investments

Chapter 1 What is an Alternative Investment? 3

1.1 Alternative Investments by Exclusion 3

1.2 Alternative Investments by Inclusion 4

1.3 The Blurred Lines between Traditional and Alternative Investments 8

1.4 A History of Alternative Investing: The U.S. Case 10

1.5 Investments are Distinguished by Return Characteristics 11

1.6 Investments are Distinguished by Methods of Analysis 14

1.7 Eight Other Characteristics that Distinguish Alternative and Traditional Investments 16

1.8 Five Goals of Alternative Investing 18

1.9 Two Pillars of Alternative Investment Management 20

1.10 Overview of This Book 22

Review Questions 23

Chapter 2 The Environment of Alternative Investments 25

2.1 The Participants 25

2.2 Alternative Investment Structures 33

2.3 Key Features of Fund Structures 36

2.4 Financial Markets 40

2.5 Regulatory Environment 42

2.6 Liquid Alternative Investments 43

2.7 Taxation 47

2.8 Short Selling 49

Review Questions 52

Notes 53

Chapter 3 Quantitative Foundations 55

3.1 Return and Rate Mathematics 55

3.2 Returns Based on Notional Principal 57

3.3 Internal Rate of Return 60

3.4 Problems with Internal Rate of Return 64

3.5 Other Performance Measures 73

3.6 Illiquidity, Accounting Conservatism, IRR, and the J-Curve 75

3.7 Distribution of Cash Waterfall 77

Review Questions 85

Note 86

Chapter 4 Statistical Foundations 87

4.1 Return Distributions 87

4.2 Moments of the Distribution: Mean, Variance, Skewness, and Kurtosis 90

4.3 Covariance, Correlation, Beta, and Autocorrelation 94

4.4 Interpreting Standard Deviation and Variance 104

4.5 Testing for Normality 111

4.6 Time-Series Return Volatility Models 114

Review Questions 116

Chapter 5 Foundations of Financial Economics 117

5.1 Informational Market Efficiency 117

5.2 The Time Value of Money, Prices, and Rates 122

5.3 The Three Primary Theories of th…