The Leader in CFA® Review
  1. CFA Exam: Dec. 2019 Level I
  2. Study Session 19. Alternative Investments
  3. Reading 58. Introduction to Alternative Investments

Learning Outcome Statements

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1. Alternative investments

a. compare alternative investments with traditional investments;

b. describe categories of alternative investments;

c. describe potential benefits of alternative investments in the context of portfolio management;
2. Hedge funds

d. describe hedge funds, private equity, real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence;

e. describe, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds;

f. describe issues in valuing and calculating returns on hedge funds, private equity, real estate, commodities, and infrastructure;
3. Private equity

d. describe hedge funds, private equity, real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence;

e. describe, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds;

f. describe issues in valuing and calculating returns on hedge funds, private equity, real estate, commodities, and infrastructure;
4. Real estate

d. describe hedge funds, private equity, real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence;

e. describe, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds;

f. describe issues in valuing and calculating returns on hedge funds, private equity, real estate, commodities, and infrastructure;
5. Commodities and other altenative investments

d. describe hedge funds, private equity, real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence;

e. describe, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds;

f. describe issues in valuing and calculating returns on hedge funds, private equity, real estate, commodities, and infrastructure;
6. Risk management overview

g. describe risk management of alternative investments.