Alternative Investments: A Primer for Investment Professionals

183 Pages Posted: 19 Oct 2018

See all articles by Donald R. Chambers

Donald R. Chambers

Chartered Alternative Investment Analyst Association (CAIA)

Keith Black

Chartered Alternative Investment Analyst Association (CAIA)

Nelson J. Lacey

Chartered Alternative Investment Analyst Association (CAIA)

Date Written: March 1, 2018

Abstract

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.

Suggested Citation

Chambers, Donald R. and Black, Keith and Lacey, Nelson J., Alternative Investments: A Primer for Investment Professionals (March 1, 2018). CFA Institute Research Foundation Publications, March 2018, Volume 2018, Issue 1, ISBN 978-1-944960-37-7. Available at SSRN: https://ssrn.com/abstract=3254577 or http://dx.doi.org/10.2139/ssrn.3254577

Donald R. Chambers (Contact Author)

Chartered Alternative Investment Analyst Association (CAIA) ( email )

100 University Drive
Amherst, MA 01002
United States

Keith Black

Chartered Alternative Investment Analyst Association (CAIA)

100 University Drive
Amherst, MA 01002
United States

Nelson J. Lacey

Chartered Alternative Investment Analyst Association (CAIA)

100 University Drive
Amherst, MA 01002
United States

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