Book description
The official CAIA Level 1 curriculum book, updated and expanded to reflect the March 2016 exam
Alternative Investments: CAIA Level I, 3rd Edition is the curriculum book for the Chartered Alternative Investment Analyst (CAIA) Level I professional examination. Covering the fundamentals of the alternative investment space, this book helps you build a foundation in alternative investment markets. You'll look closely at the different types of hedge fund strategies and the range of statistics used to define investment performance as you gain a deep familiarity with alternative investment terms and develop the computational ability to solve investment problems. From strategy characteristics to portfolio management strategies, this book contains the core material you will need to succeed on the CAIA Level I exam. This updated third edition tracks to the latest version of the exam, and is accompanied by the following ancillaries: a workbook, study guide, learning objectives, and an ethics handbook.
Most investment analyst education programs focus primarily on the traditional asset classes, pushing alternative investments to the sidelines. The CAIA designation was developed in response to the tremendous growth of alternative investing, and is the industry's premier educational standard. This book is your official study companion, bringing you fully up to speed on everything you need to know (with the exception of the ethics material covered in a separate handbook).
Understand the complexities of each alternative asset class
Learn the quantitative techniques professionals use every day
Dig into the unique aspects of alternative investments
Master the core material covered by the CAIA Level I exam
More than 300 financial institutions and hedge funds have committed key executives to the CAIA exam, and this rapidly growing trend speaks to the designation's rising status as a must-have credential for anyone in the alternative investment sphere. Increase your chances of success by getting your information straight from the source in CAIA Level I.
Table of contents
- Preface
- Acknowledgments
- About the Authors
-
PART 1 Introduction to Alternative Investments
-
CHAPTER 1 What Is an Alternative Investment?
- 1.1 Alternative Investments by Exclusion
- 1.2 Alternative Investments by Inclusion
- 1.3 Structures among Alternative Investments
- 1.4 Investments Are Distinguished by Return Characteristics
- 1.5 Investments Are Distinguished by Methods of Analysis
- 1.6 Investments Are Distinguished by Other Factors
- 1.7 Goals of Alternative Investing
- 1.8 Overview of This Book
- Review Questions
- CHAPTER 2 The Environment of Alternative Investments
- CHAPTER 3 Quantitative Foundations
- CHAPTER 4 Statistical Foundations
- CHAPTER 5 Measures of Risk and Performance
- CHAPTER 6 Foundations of Financial Economics
- CHAPTER 7 Benchmarking and Performance Attribution
-
CHAPTER 8 Alpha, Beta, and Hypothesis Testing
- 8.1 Overview of Beta and Alpha
- 8.2 Ex Ante versus Ex Post Alpha
- 8.3 Inferring Ex Ante Alpha from Ex Post Alpha
- 8.4 Return Attribution, Alpha, and Beta
- 8.5 Ex Ante Alpha Estimation and Return Persistence
- 8.6 Return Drivers
- 8.7 Using Statistical Methods to Locate Alpha
- 8.8 Sampling and Testing Problems
- 8.9 Statistical Issues in Analyzing Alpha and Beta
- Review Questions
- Notes
-
CHAPTER 9 Regression, Multivariate, and Nonlinear Methods
- 9.1 Single-Factor Models and Regression
- 9.2 Multifactor Models and Regression
- 9.3 Three Dynamic Risk Exposure Models
- 9.4 Two Approaches to Modeling Changing Correlation
- 9.5 Four Multifactor Approaches to Understanding Hedge Fund Returns
- 9.6 Evidence on Fund Performance Persistence
- Review Questions
- Notes
-
CHAPTER 1 What Is an Alternative Investment?
-
PART 2 Real Assets
- CHAPTER 10 Natural Resources and Land
- CHAPTER 11 Commodity Forward Pricing
-
CHAPTER 12 Commodities: Applications and Evidence
- 12.1 Commodity Investing for Diversification
- 12.2 Commodity Investing for Return Enhancement
- 12.3 Investing in Commodities without Futures
- 12.4 Commodity Exposure through Futures Contracts
- 12.5 Commodity Futures Indices
- 12.6 Commodity Risks and Returns
- 12.7 Historical Risks and Returns
- Review Questions
- CHAPTER 13 Operationally Intensive Real Assets
- CHAPTER 14 Liquid and Fixed-Income Real Estate
- CHAPTER 15 Real Estate Equity Investments
- PART 3 Hedge Funds
- PART 4 Private Equity
-
PART 5 Structured Products
- CHAPTER 25 Introduction to Structuring
- CHAPTER 26 Credit Risk and Credit Derivatives
-
CHAPTER 27 CDO Structuring of Credit Risk
- 27.1 Overview of CDO Variations
- 27.2 Balance Sheet CDOs and Arbitrage CDOs
- 27.3 Mechanics of and Motivations for an Arbitrage CDO
- 27.4 Cash-Funded CDOs versus Synthetic CDOs
- 27.5 Cash Flow CDOs versus Market Value CDOs
- 27.6 Credit Enhancements
- 27.7 Developments in CDOs
- 27.8 Risks of CDOs
- Review Questions
- CHAPTER 28 Equity-Linked Structured Products
-
PART 6 Risk Management and Portfolio Management
- CHAPTER 29 Cases in Tail Events
- CHAPTER 30 Investment Process, Operations, and Risk
-
CHAPTER 31 Due Diligence of Fund Managers
- 31.1 Due Diligence Evidence and Organization
- 31.2 Screening with Three Fundamental Questions
- 31.3 Structural Review
- 31.4 Strategic Review
- 31.5 Administrative Review
- 31.6 Performance Review
- 31.7 Portfolio Risk Review
- 31.8 Legal Review
- 31.9 Reference Review
- 31.10 Evidence on Operational Risk
- Review Questions
- Notes
- CHAPTER 32 Portfolio Management, Alpha, and Beta
- APPENDIX Data Sources
- Index
- EULA
Product information
- Title: Alternative Investments: CAIA Level I, 3rd Edition
- Author(s):
- Release date: September 2015
- Publisher(s): Wiley
- ISBN: 9781119003366
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