Master
2021/2022
Alternative Investments
Type:
Elective course (Financial Analyst)
Area of studies:
Finance and Credit
Delivered by:
HSE Banking Institute
Where:
HSE Banking Institute
When:
2 year, 2 module
Mode of studies:
offline
Open to:
students of one campus
Master’s programme:
Financial Analyst
Language:
English
ECTS credits:
3
Contact hours:
30
Course Syllabus
Abstract
Asset management industry is currently undergoing a major transition: institutional and individual investors have suffered from massive capital losses from “traditional” investment products like long-only mutual funds and pension funds with benchmark-related performance targets during the Global Financial Crisis (GFC) 2008-09 and now they are moving asset allocation tilt towards alternative investment (AI) strategies managed under absolute return objective and less correlated with the price movements of major asset classes. Hedge funds industry as well as private equity, venture capital, credit derivatives, commodities trading and real estate assets under management (AuM) are growing rapidly. This Alternative Investments (AI) course makes a quick hands-on introduction into alternative investments products and strategies, risk-return comparative analysis of hedge funds against “traditional” investment funds and explores the role of AI in the diversified investment portfolio. AI course is focused on major hedge funds strategies and their risk/return profiles along with risk management techniques for the portfolio of hedge funds. Program of the course has a strong bias towards “real life” applications of simple multi-factor econometric model (via Microsoft Excel Data Analysis Toolpack) where students train financial advisor's day-to-day skills. The course structure and content are derived from well-known Chartered Alternative Investment Analyst (CAIA) and Chartered Financial Analyst (CFA) programs.
Learning Objectives
- The major objective of the course is to make a quick & practical overview of the investment management industry and its trends with a particular emphasis on hedge funds, their typical investment strategies, past performance features and risk management issues with integrating of AI with diversified portfolio of “traditional” investment products.
Expected Learning Outcomes
- Upon successful accomplishment of the course students: • can review and run qualitative and quantitative analysis of alternative investment strategy or product, build an investment portfolio of alternative products (with particular focus on hedge funds);
- • can carry out Due Diligence process of a hedge fund/CTA;
- • will apply tactical and strategic asset allocation within diversified investment portfolio, assess and adjust Beta and Alpha of the alternative investment strategy;
- • will get familiar with typical hedge fund investment strategies and stylized facts about their past performance;
- • will have practical knowledge of risk management methodologies applied to hedge funds space.
Course Contents
- Chapter 1. Global wealth and investment management industry.
- Chapter 2. Asset allocation within diversified investment portfolio.
- Chapter 3. Fundamentals of active investment management.
- Chapter 5. Risk management with hedge funds.
- Chapter 4. Introduction into hedge funds.
Bibliography
Recommended Core Bibliography
- CAIA Association, Donald R. Chambers, Hossein B. Kazemi, & Keith H. Black. (2020). Alternative Investments : An Allocator’s Approach. Wiley.
- Lauer, T. (2018). Improving Private Portfolios with Alternative Investments. How Small Investors Can Benefit From Alternative Investments. Diplomica Verlag.
- Masoud Rabbani, Yaser Rahimi, Seyed Mahmood Kazemi, & Mehran Samavati. (2014). Satisfying the Energy Demand of a Rural Area by Considering the Investment on Renewable Energy Alternatives and Depreciation Costs. Journal of Renewable Energy, 2014. https://doi.org/10.1155/2014/907592
Recommended Additional Bibliography
- Ruediger Kiesel, Rudi Zagst, & Matthias Scherer. (2010). Alternative Investments And Strategies. World Scientific.