This document talks about alternative investments. Basically describes and explains Hedge Funds, Private Markets (Equity and Debt), Commodities. Also it talks about asset allocators, like Pension Funds, Family Offices, Endowments, Sovereign Wealth Funds.
It contains graphs to compare different t...
ADVANCED PORTFOLIO MANAGEMENT
ALTERNATIVE INVESTMENTS
MSc. In Finance
, Table of Contents
1.HISTORY OF ALTERNATIVE INVESTMENTS ....................................................................... 4
Bullet Point Ideas on different Alternative Investments ................................................................................ 5
1.2. Role of the “Asset Allocator” Of the Future .................................................................... 6
1.2.1 What Is an Asset Allocator? ................................................................................................................... 6
1.3 Trends of Asset Allocators ................................................................................................ 7
1.4 Challenges for the Future ................................................................................................. 9
2 HEDGE FUNDS .............................................................................................................. 10
2.1 What is a hedge fund? .................................................................................................... 10
2.2 Hedge Fund’s Fees .......................................................................................................... 11
3.3 Types of Hedge Funds .................................................................................................... 12
3.4 Hedge Fund Performance............................................................................................... 12
3.5 Hedge Funds Biases in Performance .............................................................................. 12
3.6 Challenges for the Future ............................................................................................... 13
2.2 TYPES OF HEDGE FUNDS ................................................................................................ 14
2.2.1 Macro and managed futures: .............................................................................................................. 14
2.2.2 Event-Driven HF ................................................................................................................................... 15
2.2.3 Relative Value Hedge Funds................................................................................................................. 15
2.2.4 Equity Hedge Funds ............................................................................................................................. 16
3 PRIVATE MARKETS ....................................................................................................... 17
3.1 What are private markets?............................................................................................. 17
3.2 Market Structure and Dynamics .................................................................................... 18
3.1 Private Equity ................................................................................................................. 20
3.1.1 Venture Capital .................................................................................................................................... 20
3.1.2 Growth Equity ...................................................................................................................................... 20
3.1.3 Buyouts ................................................................................................................................................ 20
, 1.HISTORY OF ALTERNATIVE INVESTMENTS
Alternative Investments (AI) by Inclusion ▪ We can classify four types of Alternative
Investments:
▪ Real assets (including natural resources, commodities, real estate, infrastructure (toll
rodas, ports), and intellectual property)
▪ Hedge funds (including managed futures)
▪ Private equity and private credit (lending outside the banking system)
▪ Structured products (including credit derivatives)
Hedge Funds
A hedge fund is a privately organized investment vehicle that uses its less regulated nature to
generate investment opportunities.
Private equity
includes both equity and debt positions that are not publicly traded:
▪ Venture Capital ▪ Leveraged Buy-outs ▪ Mezzanine financing ▪ Distressed Debt
Structured products
are instruments created to exhibit particular return, risk, taxation, or other attributes. Ex: CDO
(collat. Debt obligation)
GRAPH:
Structured products: from 3 to 1%
Hedge Funds: From 28 to 29%
Real Assets: From 30 to 36%
Private Equity: from 29 to 35%
Moving towards real assets and private equity.
Analogous traditional assets VS its Alternative Assets:
Structured products → vanilla derivatives
Hedge Funds → Mutual funds
Private Equity – Real Assets → public equity
4
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable.
Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller andrevs. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for 10,49 €. You're not tied to anything after your purchase.
