Synopses & Reviews
Historically low interest rates coupled with severe equity bear markets around the world have generated intense interest in alternative investments. With returns in traditional investment vehicles relatively low, many sophisticated investors view alternative investments as a means of meeting their return objectives.
Alternative Investments: Instruments, Performance, Benchmarks, and Strategiespart of the Robert W. Kolb Series in Financecan put you in a better position to achieve this difficult goal.
Engaging and accessible, this reliable guide contains the latest insights about alternative investments based on contributions by practitioners and academics who are experts in this area. To reinforce the information covered, each self-contained chapter concludes with a summary and discussion questions of key lessons. Along the way, this book skillfully addresses essential topics associated with this field, including the market for alternative investments, benchmarks, and historical performance as well as specific investment strategies and issues concerning performance evaluation and reporting.
Divided into five comprehensive parts, this book provides extensive coverage of alternative investments ranging from real estate and private equity to commodities, managed futures, and hedge funds. Chapter by chapter, it will help you:
- Determine the current market value of a particular alternative investment asset
- Develop your investment knowledge base with regard to real estate investment trusts (REITs), commercial real estate, mortgage-backed securities (MBS), and mezzanine loans and preferred equity investments
- Become familiar with the various investment activities and vehicles encompassing private equity, from distressed debt investing and buyout funds to venture and mezzanine capital
- Understand commodities as a financial asset as well as how commodity investing via managed futures can improve portfolio construction
- Discover the structure, history, performance, risks, and strategies of hedge funds, as well as a new nonlinear model of hedge fund returns that paves the way toward nonlinear replication
Alternative investing is a complex topic. Yet, by using this book as a guide, you will not only gain a broad understanding of the topic but also discover how to effectively apply alternative investments in real-world situations.
Synopsis
Alternative Investments provides an in-depth discussion of the historic performance, benchmarks, strategies, of every major alternative investment market. Covering, real estate, private equity, commodities and managed futures, and hedge funds, the book will serve as a comprehensive reference as well as providing information on the latest trends, research and thinking in each major area. Empirical evidence about each type of alternative investment is featured, with research presented in a straightforward manner, focusing on the comprehension on the study findings, rather than the details of mathematical frameworks. The book will describe the investment characteristics of each market, performance measurements, common strategies, and correlations with other markets. Reflecting the diversity of contributors, the book blends the conceptual world of scholars with the pragmatic view of practitioners.
Synopsis
A comprehensive guide to alternative investments that reveals today's latest research and strategiesHistorically low interest rates and bear markets in world stock markets have generated intense interest in alternative investments. With returns in traditional investment vehicles relatively low, many professional investors view alternative investments as a means of meeting their return objectives. Alternative Investments: Instruments, Performance, Benchmarks, and Strategies, can put you in a better position to achieve this difficult goal.
Part of the Robert W. Kolb Series in Finance, Alternative Investments provides an in-depth discussion of the historic performance, benchmarks, and strategies of every major alternative investment market. With contributions from professionals and academics around the world, it offers valuable insights on the latest trends, research, and thinking in each major area. Empirical evidence about each type of alternative investment is featured, with research presented in a straightforward manner.
- Examines a variety of major alternative asset classes, from real estate, private equity, and commodities to managed futures, hedge funds, and distressed securities
- Provides detailed insights on the latest research and strategies, and offers a thorough explanation of historical performance, benchmarks, and other critical information
- Blends knowledge from the conceptual world of scholars with the pragmatic view of practitioners in this field
Alternative investments provide a means of diversification, risk control, and return enhancement and, as such, are attractive to many professional investors. If you're looking for an effective way to hone your skills in this dynamic area of finance, look no further than this book.
Synopsis
The Robert W. Kolb Series in Finance is an unparalleled source of information dedicated to the most important issues in modern finance. Each book focuses on a specific topic in the field of finance and contains contributed chapters from both respected academics and experienced financial professionals. As part of the Robert W. Kolb Series in Finance,
Alternative Investments aims to provide a comprehensive understanding of the essential elements associated with this important area of finance.
Filled with in-depth insights and practical advice, Alternative Investments provides a thorough look at the historical performance, benchmarks, and strategies associated with many of today's most effective alternative investments. It offers valuable insights on the latest trends, research, and thinking in each major area, and empirical evidence on each type of alternative investment is featured.
Comprising five informative parts, this timely guide contains a detailed discussion of alternative investments, covering everything from real estate and private equity to commodities, managed futures, and hedge funds. Along the way, it will help you navigate through the key areas of alternative investments and show you how to balance their opportunities and risks.
Alternative investments provide a means of diversification, risk control, and return enhancement and, as such, are attractive to many sophisticated investors. If you are looking for an effective way to hone your skills in this dynamic area of finance, look no further than this book.
About the Author
H. Kent Baker (Washington D.C.) is University Professor of Finance and Kogod Research Professor at the Kogod School of Business, American University He has served on several boards of directors and advisory councils including the Eastern Finance Association and Southern Finance Association, where he is currently the Vice President - Program and President elect. . Professor Baker is the author or editor of 16 books, has published more than 250 journal articles, monographs, book chapters, and proceedings as well as 350 book reviews and abstracts. Professor Baker has consulting and training experience with more than 100 organizations. These organizations include the American Bankers Association, AT&T, The CFA Institute, Central Intelligence Agency, Comptroller of the Currency, Credit Suisse, Ernst & Young, Goldman Sachs, Institute of Management Accountants, Kaplan Schweser, New York Society of Security Analysts, Saudi Aramco, UBS, and Xerox.
Greg Filbeck (Erie, PA) holds the Samuel P. Black III Professor of Insurance and Risk Management at Penn State Erie and serves as Program Chair for Finance. Before joining the Faculty at Penn State Erie in 2006, he served as Senior Vice-President of Kaplan Schweser from 1999 to 2006 where he was in charge of all content and curriculum and helped launch marketing and sales divisions of the company. He also held academic appointments at Miami University (Ohio) and the University of Toledo, where he also served as the Associate Director of the Center for Family Business. Professor Filbeck is the author of the book Derivatives and Risk Management and editor of the book CFA® Basics: The Schweser Study Guide to Getting Started. He has published more than 60 refereed academic journal articles that have appeared in journals such as Financial Analysts Journal, Financial Review, and Journal of Business, Finance, and Accounting.
Table of Contents
Acknowledgments ix
PART I Introduction 1
1 Alternative Investments: An Overview 3
H. Kent Baker and Greg Filbeck
2 The Role of Alternative Investments in Strategic Asset Allocation 19
Douglas Cumming, Lars Helge Haß, and Denis Schweizer
3 Trends in Alternative Investments 37
Erik Benrud
4 Alternative Investments and Due Diligence 53
Gökhan Afyonoğlu
PART II Real Estate 77
5 REITs and the Private Real Estate Market 79
Shaun A. Bond and Qingqing Chang
6 Commercial Real Estate 99
Peter Chinloy
7 Real Estate Investment Trusts 119
Brad Case
8 Mortgaged-Backed Securities 143
Eric J. Higgins
9 Mezzanine Debt and Preferred Equity in Real Estate 163
Andrew R. Berman
10 Real Estate Appraisal and Valuation 185
Jeffrey D. Fisher and Demetrios Louziotis, Jr.
11 Performance of Real Estate Portfolios 213
David Geltner
PART III Private Equity 239
12 Venture Capital 241
Tom Vanacker and Sophie Manigart
13 Mezzanine Capital 263
Sameer Jain and Phillip Myburgh
14 Buyout Funds 281
Christian Rauch and Mark Wahrenburg
15 Distressed Debt Investing 303
Michelle M. Harner, Paul E. Harner, Catherine M. Martin, and Aaron M. Singer
16 Performance of Private Equity 323
Christoph Kaserer and Rüdiger Stucke
17 Private Equity: Risk and Return Profile 345
Axel Buchner, Arif Khurshed, and Abdulkadir Mohamed
PART IV Commodities and Managed Futures 363
18 Investing in Commodities 365
Claudio Boido
19 Performance of Commodities 381
Andrew Clark
20 Commodity Futures and Strategic Asset Allocation 399
Yongyang Su, Marco C. K. Lau, and Frankie Chau
21 Managed Futures:Markets, Investment Characteristics, and Role in a Portfolio 419
Davide Accomazzo
22 An Overview of Managed Futures’ Performance: 1983 to Post-2008 Credit Crisis 437
Kai-Hong Tee
PART V Hedge Funds 453
23 Investing in Hedge Funds 455
Hunter M. Holzhauer
24 Performance of Hedge Funds 475
Dianna Preece
25 Hedge Funds and Risk Management 495
Theodore Syriopoulos
26 Hedge Funds and the Financial Crisis 521
Jing-Zhi Huang and Ying Wang
27 Hedge Funds: Replication and Nonlinearities 541
Mikhail Tupitsyn and Paul Lajbcygier
28 Fund-of-Funds: A Tale of Two Fees 567
Kartik Patel
Answers to Discussion Questions 587
Index 619