Alternative Investments And Strategies

This book combines academic research and practical expertise on alternative assets and trading strategies in a unique way. The asset classes that are discussed include: credit risk, cross-asset derivatives, energy, private equity, freight agreements, alternative real assets (ARA), and socially responsible investments (SRI). The coverage on trading and investment strategies are directed at portfolio insurance, especially constant proportion portfolio insurance (CPPI) and constant proportion debt obligation (CPDO) strategies, robust portfolio optimization, and hedging strategies for exotic options.

This book combines academic research and practical expertise on alternative assets and trading strategies in a unique way. The asset classes that are discussed include : credit risk, cross-asset derivatives, energy, private equity, freight agreements, alternative real assets (ARA), and socially responsible investments (SRI). The coverage on trading and investment strategies are directed at portfolio insurance, especially constant proportion portfolio insurance (CPPI) and constant proportion debt obligation (CPDO) strategies, robust portfolio optimization, and hedging strategies for exotic options.

Alternative Investments: A Primer for Investment Professionals provides an overview of alternative investments for institutional asset allocators and other overseers of portfolios containing both traditional and alternative assets. It is designed for those with substantial experience regarding traditional investments in stocks and bonds but limited familiarity regarding alternative assets, alternative strategies, and alternative portfolio management. The primer categorizes alternative assets into four groups: hedge funds, real assets, private equity, and structured products/derivatives. Real assets include vacant land, farmland, timber, infrastructure, intellectual property, commodities, and private real estate. For each group, the primer provides essential information about the characteristics, challenges, and purposes of these institutional-quality alternative assets in the context of a well-diversified institutional portfolio. Other topics addressed by this primer include tail risk, due diligence of the investment process and operations, measurement and management of risks and returns, setting return expectations, and portfolio construction. The primer concludes with a chapter on the case for investing in alternatives.

The rewards of carefully chosen alternative investments can be great. But many investors don’t know enough about unfamiliar investments to make wise choices. For that reason, financial advisers Larry Swedroe and Jared Kizer designed this book to bring investors up to speed on the twenty most popular alternative investments: Real estate, Inflation-protected securities, Commodities, International equities, Fixed annuities, Stable-value funds, High-yield (junk) bonds, Private equity (venture capital), Covered calls, Socially responsible mutual funds, Precious metals equities, Preferred stocks, Convertible bonds, Emerging market bonds, Hedge funds, Leveraged buyouts, Variable annuities, Equity-indexed annuities, Structured investment products, Leveraged funds The authors describe how the investments work, the pros and cons of each, which to consider, which to avoid, and how to get started. Swedroe and Kizer evaluate each investment in terms of: Expected returns Volatility Distribution of returns Diversification potential Fees Trading and operating expenses Liquidity Tax efficiency Account location Role in an asset-allocation program Any investor who is considering or just curious about investment opportunities outside the traditional world of stocks, bonds, and bank certificates of deposit would be well-advised to read this book.

The global markets continue to be volatile and the overall economy remains uncertain. In this environment, it's more important than ever to get familiar with risk management principles and seek out alternative investment strategies carefully to maintain and grow your capital. Written by Raghurami Reddy Etukuru, MBA, CAIA, FRM, PRM, this guidebook introduces you to various alternative investments and risk management concepts in straightforward language. For instance, hedge funds are often seen as risky investments, but they actually provide greater diversification than traditional common stocks. If you engage in the proper hedge fund strategy, you'll also find less volatility. In addition to hedge funds, you will find information and guidance on various phases of due diligence; risk metrics, quantitative models and exotic options; commodities, managed futures, private equities, and real estate; brokers, auditors, and legal counsel. Get the information you need to make informed decisions about your own finances. Whether you are a businessperson, student, analyst it's imperative for you to develop a deeper understanding of Alternative Investment Strategies and Risk Management.

We are entering a golden age of alternative investments. Alternative asset classes including private equity, hedge funds, catastrophe reinsurance, real assets, non-traditional credit, alternative risk premia, digital assets, collectibles, and other novel assets are now available to investors and their advisors in a way that they never have been before. The pursuit of diversification is not as straightforward as it once was — and the classic 60/40 portfolio may no longer be sufficient in helping investors achieve their most important financial goals. With the ever-present need for sustainable income and risk management, alternative assets are poised to play a more prominent role in investor portfolios. Phil Huber is the Chief Investment Officer for a multi-billion dollar wealth management firm and acts as your guide on a journey through the past, present, and future of alternative investments. In this groundbreaking tour de force, he provides detailed coverage across the spectrum of alternative assets: their risk and return characteristics, methods to gain exposure, and how to fit everything into a balanced portfolio. The three parts of The Allocator’s Edge address: 1. Why the future may present challenges for traditional portfolios; why the adoption of alternatives has remained elusive for many allocators; and why the case for alternatives is more compelling than ever thanks to financial evolution and innovation. 2. A comprehensive survey of the asset classes and strategies that comprise the vast universe of alternative investments. 3. How to build durable and resilient portfolios that harness alternative assets; and how to sharpen the client communication skills needed to establish proper expectations and make the unfamiliar familiar. The Allocator’s Edge is written with the practitioner in mind, providing financial advisors, institutional allocators, and other professional investors the confidence and courage needed to effectively understand, implement, and translate alternatives for their clients. Alternative investments are the allocator’s edge for the portfolios of tomorrow — and this is the essential guide for advisors and investors looking to seize the opportunity.

The purpose of this book is to present the principles of alternative investments in management. The individual chapters provide a detailed analysis of various classes of alternative investments on the financial market. Despite many different definitions of alternative investments, it can be assumed that a classical approach to alternative investments includes hedge funds, fund of funds (FOF), managed accounts, structured products and private equity/venture capital. Alternative investment in keeping with this broad definition is the subject of consideration here. The theoretical part of each chapter is meant to collect, systematize and deepen readers’ understanding of a given investment category, while the practical part of each focuses on an analysis of the current state of development of alternative investments on the global market and outlines the prospects of future market development. This book will be a valuable tool for scholars, practitioners and policy-makers alike.