MindMap Gallery CFA Level 1-Study Session Alternative Investments
CFA Level 1 - Derivatives. Except for stocks and bonds, all assets are called alternative investments. Investments include indirect investments, mixed investments, and direct investments.
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This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
Study Session 17 Alternative Investments
R47 Introduction to Alternative Investments
Basic characteristics of Alternative Investments
Liquidity
Manage specialization
Correlation with traditional investments
Return&Risk
Application
Risk metrics
Application
Regulation and transparency
Historical risk and return data
Legal and tax considerations
Leverage and derivatives
Higher fees
Concentrated portfolios
Restrictions on redemptions
Basics of Investing Methods
Fund investing (indirect)
Co-investing (direct & indirect)
Adverse selection bias
Direct investing (direct)
Investment and Compensation Structure
Investment Structure
Partnership
Application
Compensation Structure
Hedge funds Fee
Management fee
Incentive fee
Hurdle rate
Hard hurdle rate
Soft hurdle rate
Application
High water mark
Application
Application
Application
Application
Application
PE Fee
committed capital
Incentive fee
Waterfall
Deal-by-deal (American) waterfalls
Whole-of-fund (European) waterfalls
Clawback provision
Categories
Hedge funds
Characteristics
Restrictions on redemptions
Hedge fund indices
Funds of funds
Application
Strategies
Equity hedge strategies
Market Neutral
Event-driven strategies
Merger arbitrage
Distressed/restructuring
Activist shareholder
Relative value strategies
Fixed income convertible arbitrage
Macro strategies and CTA strategies
Application
Application
Application
Hedge fund fees,valuation and due diligence
Management fee
Other Considerations
Valuation
Problems related to “mark-to-model” valuation
Application
Due Diligence
Private Capital
private equity funds
PE Types
Leveraged buyouts (LBOs)
Attractive target companies
Application
Venture capital
Formative stage
Angel investing
Seed stage(A)
Early stage(B)
Later stage(C)
Mezzanine stage (Pre-IPO)
Growth capital
Development capital
Distressed investing
Common exit strategies
IPO
Trade sale
Application
Secondary sale
Recapitalization
Write-off/liquidation
MBO
Valuation
Investment Considerations
Private debt
Direct Lending
Mezzanine Debt
Venture Debt
Distressed Debt
Other Private Debt Strategies
Collateralized loan obligations (CLOs)
Application
Unitranche debt
Infrastructure debt
Real estate debt
Specialty loans
Natural Resources
Commodities
Characteristic
Potential benefits and risks
Means of achieving exposure
Spot prices and expected future prices
Contango
Application
Backwardation
The price of a futures contract
Application
Sources of return and risk
Collateral yield
Price return
Roll yield
Application
Timberland&Farmland
Potential benefits and risks
Application
Convenience Yield
Real estate
Characteristics
Investment categories
Equity/Debt&Private/Public
Direct Real Estate Investing&Indirect Real Estate Investing
Underlying assets
Residential property
Commercial property
Application
REIT investing
Mortgage-backed securities (MBS)
Performance measurements
Appraisal index
Repeat sales (transaction-based) index
REIT index
Valuation
Infrastructure
Characteristics
Investment categories
Brownfield vs Greenfield
Application
Direct vs Indirect
Other
Tangible assets
Collectibles
Intangible assets
Issues in Performance Appraisal
Sharpe Ratio
Treynor Ratio
VaR, Sortino Ratio
Calmar ratio
For PE
IRR approach
Multiple of invested capital