The Robert W. Kolb Series in Finance is an unparalleled source of information dedicated to the most important issues in modern finance. Each book focuses on a specific topic in the field of finance and contains contributed chapters from both respected academics and experienced financial professionals. As part of the Robert W. Kolb Series in Finance, Alternative Investments aims to provide a comprehensive understanding of the essential elements associated with this important area of finance.
Filled with in–depth insights and practical advice, Alternative Investments provides a thorough look at the historical performance, benchmarks, and strategies associated with many of today′s most effective alternative investments. It offers valuable insights on the latest trends, research, and thinking in each major area, and empirical evidence on each type of alternative investment is featured.
Comprising five informative parts, this timely guide contains a detailed discussion of alternative investments, covering everything from real estate and private equity to commodities, managed futures, and hedge funds. Along the way, it will help you navigate through the key areas of alternative investments and show you how to balance their opportunities and risks.
Alternative investments provide a means of diversification, risk control, and return enhancement and, as such, are attractive to many sophisticated investors. If you are looking for an effective way to hone your skills in this dynamic area of finance, look no further than this book.
PART I Introduction 1
1 Alternative Investments: An Overview 3H. Kent Baker and Greg Filbeck
2 The Role of Alternative Investments in Strategic Asset Allocation 19Douglas Cumming, Lars Helge Haß, and Denis Schweizer
3 Trends in Alternative Investments 37Erik Benrud
4 Alternative Investments and Due Diligence 53Gökhan Afyono lu
PART II Real Estate 77
5 REITs and the Private Real Estate Market 79Shaun A. Bond and Qingqing Chang
6 Commercial Real Estate 99Peter Chinloy
7 Real Estate Investment Trusts 119Brad Case
8 Mortgaged–Backed Securities 143Eric J. Higgins
9 Mezzanine Debt and Preferred Equity in Real Estate 163Andrew R. Berman
10 Real Estate Appraisal and Valuation 185Jeffrey D. Fisher and Demetrios Louziotis, Jr.
11 Performance of Real Estate Portfolios 213David Geltner
PART III Private Equity 239
12 Venture Capital 241Tom Vanacker and Sophie Manigart
13 Mezzanine Capital 263Sameer Jain and Phillip Myburgh
14 Buyout Funds 281Christian Rauch and Mark Wahrenburg
15 Distressed Debt Investing 303Michelle M. Harner, Paul E. Harner, Catherine M. Martin, and Aaron M. Singer
16 Performance of Private Equity 323Christoph Kaserer and Rüdiger Stucke
17 Private Equity: Risk and Return Profile 345Axel Buchner, Arif Khurshed, and Abdulkadir Mohamed
PART IV Commodities and Managed Futures 363
18 Investing in Commodities 365Claudio Boido
19 Performance of Commodities 381Andrew Clark
20 Commodity Futures and Strategic Asset Allocation 399Yongyang Su, Marco C. K. Lau, and Frankie Chau
21 Managed Futures:Markets, Investment Characteristics, and Role in a Portfolio 419Davide Accomazzo
22 An Overview of Managed Futures Performance: 1983 to Post–2008 Credit Crisis 437Kai–Hong Tee
PART V Hedge Funds 453
23 Investing in Hedge Funds 455Hunter M. Holzhauer
24 Performance of Hedge Funds 475Dianna Preece
25 Hedge Funds and Risk Management 495Theodore Syriopoulos
26 Hedge Funds and the Financial Crisis 521Jing–Zhi Huang and Ying Wang
27 Hedge Funds: Replication and Nonlinearities 541Mikhail Tupitsyn and Paul Lajbcygier
28 Fund–of–Funds: A Tale of Two Fees 567Kartik Patel
Answers to Discussion Questions 587
H. KENT BAKER, PhD, CFA, CMA, is University Professor of Finance at the Kogod School of Business, American University in Washington, D.C. As one of the most prolific finance academics, he is the author or editor of 18 books, and more than 150 refereed articles in such publications as the Journal of Finance, Journal of Financial and Quantitative Analysis, Financial Management, Financial Analysts Journal, Journal of Portfolio Management, and Harvard Business Review. He has consulting and training experience with more than 100 organizations. Professor Baker received a BSBA from Georgetown University; MEd, MBA, and DBA degrees from the University of Maryland; and an MA, MS, and two PhDs from American University. He also holds CFA and CMA designations.
GREG FILBECK holds the Samuel P. Black III Professor of Insurance and Risk Management at Penn State Erie, The Behrend School, and serves as Program Chair for Finance. He previously served as senior vice–president at Kaplan Schweser, and also held academic appointments at Miami University (Ohio) and the University of Toledo, where he served as the associate director of the Center for Family and Privately–Held Business. Professor Filbeck is a coauthor of Derivatives and Risk Management and editor of CFA Basics: The Schweser Study Guide to Getting Started. He has published more than 70 refereed academic journal articles that have appeared in the Financial Analysts Journal, Financial Review, and Journal of Business Finance and Accounting. Professor Filbeck serves on the editorial board of the Journal of Business and Economic Perspectives and as a board member for the Southern Finance Association.