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Alternative Investments

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

People

 

Mueller P.

Course director

Additional information

Semester
Fall
Academic year
2019-2020
ECTS
3
Language
English
Education
Master of Science in Economics and Communication in Financial Communication, Elective course, Elective course, 2nd year

Master of Science in Economics in Finance, Core course, Minor in Digital Finance, 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