Alternative Investments
People
Course director
Description
Prerequisites
Basic finance, basic math
Objectives
Understand different categories of alternative investments, such as hedge funds, commodities, credit derivatives, private equity, venture capital and real estate.
Description / Program
This course provides both a theoretical and practical look into the world of managing alternative investments such as hedge funds, commodities, private equity, venture capital, LBOs. With regards to hedge funds we will focus on their strategies, including market neutral investing, statistical arbitrage and derivatives arbitrage. Topics include hedge fund compensation, performance evaluation, risk management, including operational risk, and the role of arbitrageurs in the capital market. In terms of commodities we discuss various instruments to invest in commodities and discuss the emergence of commodities as an asset class. Furthermore, we discuss the basics of venture capital investments and the different stages of the investment process. We look at valuations of VC and PE investments and discuss simple examples and case studies illustrating how returns are generated by VC and PE funds. Finally, we also discuss real estate as an asset class and consider how real estate investments are a worthwhile addition to a diversified investment portfolio.
Learning Method / Style of Lessons
Lectures and in-class exercises
Exam Style
Final exam (closed book) and group presentations
Readings/Textbooks
Mark J. P. Anson, Handbook of Alternative Assets, John Wiley & Sons (2006)
Andrew W. Lo, Hedge Funds: An Analytic Perspective, Princeton University Press (2010)
Lecture slides
Education
- Master of Science in Economics and Communication in Financial Communication, Elective course, Elective course, 2nd year
- Master of Science in Economics in Finance, Elective course, Minor in Banking and Finance, 2nd year
- Master of Science in Economics in Finance, Core course, Minor in Quantitative Finance, 2nd year
- Master of Science in Economics in Finance, Core course, Minor in Digital Finance, 2nd year