FIN4015 - Alternative Investments
|Year of Study:||4|
|Prerequisites:||FIN3001 Financial Institutions and Markets, FIN3003 Principles of Investments or with the Instructor's permission and upon endorsement of the relevant Head and Programme Director.|
This course aims to provide an overall insight into the alternative investment techniques available to private and institutional investors in a globalised market. The main emphasis will be on the various complementary investment vehicles, methods and industries such as hedge funds, commodities, real estate and private equity. The module aims to add a new dimension to the construction and management of traditional investment portfolios, such as bonds and equities, by focusing on the workings of the industries classified under alternative investments, examine their incentives and subsequent transactions.
Upon completion of this module, students should be able to:
- explain and identify beta and alpha drivers for investment innovation in asset management industry;
- have a thorough appreciation of the use of real estate as a profit enhancing investment method and the nature of property investment vehicles (both listed and unlisted);
- have a clear and comprehensive understanding of how the hedge fund industry is structured, its methods and most common investments strategies and how this industry compares to traditional investment vehicles;
- have a comprehensive knowledge of how one can invest in various commodities, the profile and payoff of such investments and their attributes on a hedging and diversification environment;
- have an enhanced outlook of the private equity methods of investment on new projects from an entrepreneurial standpoint through venture capital, leveraged buyouts and other strategies;
- demonstrate an overall working knowledge of the analysis of alternative investments, including mutual or investment funds, exchange-traded funds, real estate, private equity, venture capital, hedge funds, closely held companies, distressed securities, and commodities and commodity derivatives.