Alternative Investments Instruments Performance Benchmarks And Strategies

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What Are The Key Characteristics Of Alternative Investments

Introduction To Alternative Investments (2022 CFA® Level I Reading 47 Alternative Investments)

Alternative investments tend to have high fees and minimum investments, compared to retail-oriented mutual funds and ETFs. They also tend to have lower transaction costs, and it can be harder to get verifiable financial data for these assets. Alternative investments also tend to be less liquid than conventional securities, meaning that it may be difficult even to value some of the more unique vehicles because they are so thinly traded.

What Are The Regulatory Standards For Alternative Investments

Regulations for alternative investments are less clear than they are for more traditional securities. Although alternative investment vehicles are regulated by the SEC, their securities do not have to be registered. As a result, most of these investment vehicles are only available to institutions or wealthy accredited investors.

Strategy For Alternative Investments

Alternative investments typically have a low correlation with those in standard asset classes. This low correlation means they often move counter to the stock and bond markets. This feature makes them a suitable tool for portfolio diversification. Investments in hard assets, such as gold, oil, and real property, also provide an effective hedge against inflation, which hurts the purchasing power of paper money.

Because of this, many large institutional funds such as pension funds and private endowments often allocate a small portion of their portfoliosâtypically less than 10%âto alternative investments such as hedge funds.

The non-accredited retail investor also has access to alternative investments. Alternative mutual funds and exchange-traded fundsâalso called alt funds or liquid altsâare now available. These alt funds provide ample opportunity to invest in alternative asset categories, previously difficult and costly for the average individual to access. Because they are publicly traded, alt funds are SEC-registered and regulated, specifically by the Investment Company Act of 1940.

  • High-risk

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Alternative Investments: Instruments Performance Benchmarks And Strategies

A comprehensive guide to alternative investments that reveals today’s latest research and strategies

Historically 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

Regulation Of Alternative Investments

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Even when they don’t involve unique items like coins or art, alternative investments are prone to investment scams and fraud due to the lack of regulations.

Alternative investments are often subject to a less clear legal structure than conventional investments. They do fall under the purview of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and their practices are subject to examination by the U.S. Securities and Exchange Commission . However, they usually don’t have to register with the SEC. As such, they are not overseen or regulated by the SEC as are mutual funds and ETFs.

So, it is essential that investors conduct extensive due diligence when considering alternative investments. In some cases, only accredited investors may invest in alternative offerings. Accredited investors are those with a net worth exceeding $1 millionânot counting their primary residenceâor with an annual income of at least $200,000.

Some alternative investments are only available to accredited investorsâthose with a net worth above $1 million, or an annual income of at least $200,000.

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How Can Alternative Investments Be Useful To Investors

Some investors seek out alternative investments because they have a low correlation with the stock and bond markets, meaning that they maintain their values in a market downturn. Also, hard assets such as gold, oil, and real property are effective hedges against inflation. For these reasons, many large institutions such as pension funds and family offices seek to diversify some of their holdings in alternative investment vehicles.

What Is An Alternative Investment

An alternative investment is a financial asset that does not fall into one of the conventional investment categories. Conventional categories include stocks, bonds, and cash. Alternative investments can include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts. Real estate is also often classified as an alternative investment.

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Alternative Investments : Instruments Performance Benchmarks And Strategies

Year of publication:
Type of publication :Sammelwerk Collection of articles of several authors
Language:
Enth.27 Beitr.Acknowledgments Introduction Alternative investments : an overview / H. Kent Baker, Greg FilbeckThe role of alternative investments in strategic asset allocation / Douglas Cumming, Lars Helge Haá, Denis SchweizerTrends in alternative investments / Erik BenrudAlternative investments and due diligence / Gekhan AfyonoluAnswers to discussion questions Index.
ISBN:978-1-118-24112-7 978-1-118-28518-3 978-1-118-28334-9 978-1-118-28258-8 978-1-118-65650-1
Classification:

Alternative Investments : Instruments Performance Benchmarks And Strategies Editors H Kent Baker Greg Filbeckresource Informationthe Item Alternative Investments : Instruments Performance Benchmarks And Strategies Editors H Kent Baker Greg Filbeck Represents A Specific Individual Material Embodiment Of A Distinct Intellectual Or Artistic Creation Found In European University Institute Librarythis Item Is Available To Borrow From 1 Library Branch

Alternative Investment trust strategies
Summary
Historically 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. This book provide a means of diversification, risk control, and return enhancement and, as such, are attractive to many professional 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–
Language
  • Introduction
  • Alternative investments : an overview / H. Kent Baker, Greg Filbeck
  • The role of alternative investments in strategic asset allocation / Douglas Cumming, Lars Helge Haa, Denis Schweizer
  • Trends in alternative investments / Erik Benrud
  • Alternative investments and due diligence / Gekhan Afyonolu
  • Answers to discussion questions
Alternative investments : instruments, performance, benchmarks, and strategies
Title
instruments, performance, benchmarks, and strategies
Statement of responsibility
eng
The Robert W. Kolb series in finance
http://library.link/vocab/subjectName
Includes bibliographical references and index
Carrier category
rdacontent.
Control code
Includes bibliographical references and index
Carrier category
rdacontent.

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Example Of Alternative Investments

Just being regulated does not mean that alt funds are safe investments. The SEC notes, “Many alternative mutual funds have limited performance histories.”

Also, although its diversified portfolio naturally mitigates the threat of loss, an alt fund is still subject to the inherent risks of its underlying assets. Indeed, the track record of ETFs that specialize in alternative assets has been mixed.

For example, as of January 2022, the SPDR Dow Jones Global Real Estate ETF had an annualized five-year return of 6.17%. In contrast, the SPDR S& P Oil & Gas Exploration & Production ETF posted a return of â6.40% for the same period.

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Sustainability And Inclusionsustainability And Inclusion

Liquid Alternatives

Providing both risk mitigation and return enhancement to a broader alternatives portfolio, our public market alternatives span the risk/return and liquidity spectrums. We believe the breadth of our Liquid Alternatives platform, with more than $80 billion in assets, gives us a sourcing advantage with managers across alternative strategies.

Our hedge fund manager platform is one of the largest in the world, providing access to top-tier investment talent through single-strategy vehicles or multi-manager portfolios. Our direct quantitative strategies provide efficient exposure to specific investment themes and factors, targeting lower correlations to traditional market exposures.

1 As of September 30, 2021. Includes assets under supervision and other alternatives assets held on GS balance sheet.

2 Goldman Sachs Asset Management leverages the resources of Goldman Sachs & Co. LLC subject to legal, internal and regulatory restrictions.

As of September 30, 2021.

Disclosures

Conflicts of Interest

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities or to make any investment decision.

Likewise, an investment vehicle may have exposure to developing countries and emerging markets whose securities markets are generally smaller, less liquid, and more volatile than the securities markets of developed markets.

Confidentiality

262601-OTU-1528477

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(PDF) The Role of Alternative Investments in Strategic Asset Allocation

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Our reach is global, our relationships deep, and our connections long-standing. Our network spans 63 countries, covering the worlds leading CEOs, entrepreneurs, investors, policy makers and thought leaders. We source ideas and opportunities from this network of relationships, who recognize us as a committed partner, helping them advance ideas and grow their businesses.

Differentiated Insight

We live at the center of the worlds capital markets. We are able to synthesize insights across industries, geographies, securities, strategies, technologies, and public policies. Our informational breadth expands our thinking, our expansive data contributes context, and our long experience informs our judgment.

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Alternative Investments Instruments Performance Benchmarks And Strategies Edition No 1 Robert W Kolb Series

  • ID: 2330780
  • John Wiley and Sons Ltd

    A comprehensive guide to alternative investments that reveals today’s latest research and strategies

    Historically 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.

    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.

    Common Terms And Phrases

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