A comprehensive guide to alternative investments that reveals today's latest research and strategies 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.
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 G¨okhan Afyonoglu 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 R¨ udiger 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 ofManaged 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
