Browse CFA Level 1 Essentials

Chapter 9: Alternative Investments

In this section

  • Alternative Investment Features, Methods, and Structures
    Learn the unique characteristics, techniques, and organizational forms of alternative investments, from private equity and hedge funds to real estate, commodities, and more. Discover motivations for investing, typical compensation structures, and key concepts like lock-up periods and hurdle rates.
  • Alternative Investment Performance and Returns
    Discover how to measure and evaluate the performance of alternative investments, focusing on IRR, MOIC, time- vs. money-weighted returns, fee structures, and benchmarking challenges.
  • Investments in Private Capital: Equity and Debt
    Discover the diverse world of private capital, exploring both equity and debt structures, key strategies, and the potential rewards and risks these investments offer.
  • Real Estate and Infrastructure
    Unlock in-depth insights into real estate investments, including direct property ownership, REITs, and private funds, as well as infrastructure assets such as roads, bridges, and utilities. Explore how these tangible, long-term assets can provide stable income, diversification, and unique risk-return profiles in an investment portfolio.
  • Natural Resources
    Explore raw land, timberland, farmland, and commodities as an alternative investment category, uncovering their unique characteristics, benefits, and risks.
  • Hedge Funds: Strategies, Fees, and Private Investments
    A thorough exploration of hedge funds—covering their structure, strategies, fees, and performance—ideal for learners seeking a solid foundation in alternative investments.
  • Introduction to Digital Assets
    Discover the fundamentals of cryptocurrencies, tokens, stablecoins, and the transformative impact of blockchain technology on modern finance.
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