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
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.
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
Göğkhan 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 Rϋdiger 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
