Description
The course provides an explanation for why alternative investments may be suitable for some investors using concepts from Modern Portfolio Theory. The course will also explains the characteristics and risks of alternative investments, including, hedge funds, private equity, venture capital, private debt, REITs, infrastructure investments, and commodities. The course also touches on how many of these investments are sold.
Learning Objectives
Teach students the general definition of alternative investments and provide reasons why they’re so hard to classify.
The reader will gain an understanding of how modern investors view diversification and managing their risk. To provide a brief explanation on how investors can diversity with stocks and bonds only. Finally, to introduce how alternative investments can be used to create more efficiently managed portfolios.
Students will gain an understanding of the differences in the alternative investment funds. The tax benefits of investing in pass through entities is presented. A review is provided of how alternative investment funds may be used in wealth management.
o define private debt investments and to explain the risks and benefits of investing in private debt.
To provide a brief introduction to how investors, particularly retail investors, can obtain exposure to real estate markets. Students will gain an understanding of the benefits, risks, and costs of owning different real estate-related investments.
To teach students about infrastructure investments and how they compare with other alternative investments. To review the risks of infrastructure investments and when they would be an appropriate recommendation.
To present why commodities make sense as an alternative investment. To emphasize the volatility in commodities prices, but to remind students that their uncorrelated returns make them attractive as a small portion of an investor’s portfolio.