6280 - ALTERNATIVE INVESTMENTS
CLEAM - CLES - CLEF - BIEM - CLEACC
Department of Finance
Course taught in English
BRUNELLA BRUNO
Course Objectives
The course aims to provide an in-depth understanding of the alternative investment techniques available to private and institutional investors in a globalized market. In particular the course aims to add a new dimension to the construction and management of traditional investment portfolios by focusing on alternative asset classes, examining their benefits, and presenting them in detail within an academic and practical framework.
The emphasis is on four major classes of alternative investments: Hedge Funds, Real Estate, Private Equity, and Art. Asset classes are examined in terms of the following aspects: key characteristics, investment strategies, and portfolio consideration (risk/return profile and contribution to portfolio diversification).
The aforementioned objectives are addressed in a series of formal lectures that are supplemented by live deals in the form of case studies and guest speakers from the industry.
Course Content Summary
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Alternative investments: definition and taxonomy.
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Art investment: art advisory in the private banking industry and art funds (best and worst practices).
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Art investment: performance measurement and contribution to portfolio diversification.
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Real estate: investment strategies (MBS, REITs, REIFs, ETFs).
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Real estate: performance measurement and contribution to portfolio diversification.
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Private equity: investment strategies (venture capital and LBOs).
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Private equity: performance measurement and contribution to portfolio diversification.
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Hedge funds: investment strategies.
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Hedge funds: performance measurement and contribution to portfolio diversification.
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The alternative investment industry: a synoptic view.
Detailed Description of Assessment Methods
Students can choose among three different options:
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a final general exam;
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two partial exams;
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a combination of two individual partial exams and group assignments (for attending students only).
General and partial exams are both written.
Group assignments: students are required to prepare and deliver a written document as well as to give an oral presentation.
Textbooks
Required readings will be downloadable at the Course Web Page.
Prerequisites
Students attending this course should be familiar with the concepts learnt in the following courses: Financial markets and institutions, Financial mathematics, Statistics.