30187 - ALTERNATIVE INVESTMENTS
Department of Finance
Course taught in English
Go to class group/s: 31
BAI (6 credits - I sem. - OP | SECS-P/11) - BEMACS (6 credits - I sem. - OP | SECS-P/11) - BESS-CLES (6 credits - I sem. - OP | SECS-P/11) - BGL (6 credits - I sem. - OP | SECS-P/11) - BIEF (6 credits - I sem. - OP | SECS-P/11) - BIEM (6 credits - I sem. - OP | SECS-P/11) - BIG (6 credits - I sem. - OP | SECS-P/11) - CLEACC (6 credits - I sem. - OP | SECS-P/11) - CLEAM (6 credits - I sem. - OP | SECS-P/11) - WBB (6 credits - I sem. - OP | SECS-P/11)
Course Director:
BRUNELLA BRUNO
BRUNELLA BRUNO
Suggested background knowledge
Students attending this course are expected to be familiar with the basic concepts of probability, statistics, financial markets and investments.
Mission & Content Summary
MISSION
Since the 2008 financial crisis, alternative investments have become an increasingly important component of portfolio allocation strategies, driven by demand for non-traditional asset classes offering diversification and return benefits. Their growth has evolved across different interest rate cycles and within an environment characterized by heightened uncertainty — from the pandemic to recent geopolitical tensions — as well as by the energy transition and the expansion of AI. Building on these premises, the course provides students with an in-depth understanding of the main alternative asset classes used by private and institutional investors, and of their response to different market scenarios. The course focuses on both liquid alternative investments, such as hedge funds, and illiquid investments, including private equity, private debt, real estate, and passion investments. These asset classes are examined with reference to their characteristics, investment strategies, risk-return profiles, and contributions to portfolio diversification and performance. The course also addresses emerging trends reshaping the industry, including the growing role of AI in investment management. By combining theoretical foundations with market applications and industry perspectives, the course equips students with the analytical tools needed to understand and critically assess the evolving landscape of alternative investments. This course is part of the CIVICA Bachelor Engage Track.
CONTENT SUMMARY
Main topics and asset classes covered:
- What are alternative investments? Definitions and key characteristics
- Hedge funds and liquid alternatives: investor typologies and regulatory framework
- Illiquid alternatives: private debt
- Illiquid alternatives: private equity and venture capital
- Illiquid alternatives: real estate and infrastructure
- Illiquid alternatives: passion investments (art and other collectibles)
- Liquid and illiquid alternatives: digital assets
- Alternative assets: the transformative role of AI
- Asset allocation plans: why alternative assets matter in portfolio construction
Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Characterize the common features of alternative investments and their markets.
- Identify the specificities of different alternative asset classes.
- Understand the benefits (e.g., return enhancement and/or risk diversification) and pitfalls of adding alternative investments to a reference portfolio.
- Understand how different alternative asset classes are affected throughout economic cycles and across different macroeconomic scenarios.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
- Measure risk/return profile of alternative assets and build up optimal portfolios by using both traditional and non traditional asset classes.
- Assess and choose among different alternative assets by using both qualitative and quantitative metrics.
- Measure basic hedge funds performance in different market conditions.
- Advise a potential client on how to incorporate alternative investment in his/her portfolio according to his/her investment objectives and risk tolerance.
- Think critically, interact with their peers and defend their position.
Teaching methods
- Lectures
- Guest speaker's talks (in class or in distance)
- Practical Exercises
- Collaborative Works / Assignments
- Interaction/Gamification
DETAILS
- Face-to-face lectures.
- Case studies (e.g., the Yale endowment).
- Guest speakers from the industry (ideally, one guest speaker for type of alternative asset class).
- Exercises to build up optimal asset allocations by using Excel solver.
- Group Assignment: a (non-mandatory) workgroup to be carried out throughout the cours. The purpose of this on-going exercise is to build up a real asset allocation plan according to the specific needs and requirements of institutional investors.
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Open questions and MCQs through Slido to enhance in-class participation.
Assessment methods
| Continuous assessment | Partial exams | General exam | |
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ATTENDING STUDENTS
- Assessment combines an individual written exam based on multiple-choice questions (MCQs) with group work (written report and presentation).
- MCQs assess students' understanding of alternative asset classes, portfolio diversification, economic scenarios, and investment concepts.
- Group work and presentations evaluate the ability to apply qualitative and quantitative tools to assess alternative investments, construct portfolios, formulate investment recommendations, and demonstrate critical thinking, teamwork, and communication skills.
- Details on attendance rule, groupwork assignment, and exam structure will be provided at the beginning of the course and made available in B-Board.
NOT ATTENDING STUDENTS
- Assessment consists of an individual written exam based on multiple-choice questions (MCQs). The exam assesses students' understanding of the characteristics of alternative investments, the specificities of different asset classes, portfolio diversification, and the impact of macroeconomic conditions, as well as their ability to apply key concepts and analytical tools to portfolio allocation and investment decisions.
- Details on attendance rule and exam structure will be provided at the beginning of the course and made available in B-Board.
Teaching materials
ATTENDING AND NOT ATTENDING STUDENTS
Required readings, PowerPoint slides used in class, and any additional material are made available in Bboard.
Last change 23/05/2026 14:56