Alternative Investments

Success in the rapidly evolving area of alternative investments (AI) depends on a deep understanding of the concepts, tools, and practices associated with it, as well as an unwavering dedication to professionalism. The CAIA program addresses these essential needs. Sponsored by the Chartered Alternative Investment Analyst (CAIA) Association®, the CAIA Charter is the only educational standard uniquely designed for individuals specializing in institutional-quality alternative investments. Covering hedge funds, managed futures, real assets, private equity, commodities, structured products, risk management and portfolio management, and professional standards and ethics, the CAIA Charter demonstrates one's commitment to professionalism and command of AI's unique fundamentals, setting you and your firm apart from the competition. The CAIA program is comprised of a two-tier exam process (Level I and Level II) through which you may earn the CAIA Charter. The Level I exam assesses your understanding of various alternative classes and your knowledge of the tools and techniques used to evaluate the risk-return attributes of each one. The Level II exam assesses how you would apply the knowledge and analytics learned in Level I within a portfolio management context. Both levels incorporate segments on ethics and professional conduct, which are essential components of the CAIA program. Written under the direction of the CAIA Association, with insights from many practicing and eminent professionals in this field, Alternative Investments: CAIA Level II, Third Edition contains the core material on alternative investments a potential Level II candidate would need to know as they prepare for the exam-a multifaceted assembly of questions and problem-solving tasks. Since the tools and terms introduced in Level I provide the basis for the second level of this program, the information found here will continue to focus on the issues associated with the alternative investment arena, but in greater depth and in the context of risk management and asset allocation. This comprehensive resource: Discusses advanced topics in alternative investments- from risk-parity and factor investing to real assets, structured products and operational due diligence. Focuses on the analysis and application of essential strategies involved in each alternative asset class. Addresses asset allocation and risk management techniques suitable for the construction and management of multi-asset portfolios. Is supplemented by a study guide outlining learning objectives and key words as well as a workbook, both available at www.caia.org. Since its inception in 2002, the CAIA program's diverse curriculum has benefited a wide array of individuals, from institutional investors, investment advisors, AI fund managers, and administrators to accountants, lawyers, and academics. Those with a serious interest in earning the CAIA Charter should take the time to understand the insights offered in this book and in Alternative Investments: CAIA Level I, Third Edition. The CAIA Association is an independent, not-for-profit, global organization committed to education and professionalism in the field of alternative investments. It offers two exams (Level I and Level II) to financial professionals in this growing field. Upon successful completion of both exams and joining the Association as a Member, individuals are designated Chartered Alternative Investment Analyst (CAIA) Charterholders. The CAIA Association has members from almost 90 countries on six continents.