Alternative Investments

Basic finance, basic math are prerequisites.

This course provides both a theoretical and practical introduction to the management of alternative investments, including venture capital, private equity, leveraged buyouts, hedge funds, commodities and real estate. We begin with venture capital and private equity, examining the different stages of the investment process, the valuation of VC and PE investments, and the ways in which returns are generated. Examples and case studies are used to illustrate key concepts, including the structure and financing of leveraged buyouts.

We then turn to hedge funds, with a particular focus on strategies such as market-neutral investing, statistical arbitrage and derivatives arbitrage. Topics include hedge fund compensation, performance evaluation, financial and operational risk management, and the broader role of arbitrageurs in capital markets.

The commodities section considers the various instruments available for gaining exposure to commodity markets and examines the emergence of commodities as a distinct asset class. Finally, we explore real estate as an asset class and assess its potential contribution to a diversified investment portfolio.

Readings will also include lecture slides

Understand different categories of alternative investments, such as venture capital, private equity, hedge funds, commodities, and real estate.

In presence

In-class teaching and exercises. 

Final exam (closed book) and group presentations. Presentations count for up to 20% of the final mark. Calculators are allowed for the exam.