Introductory description

Alternative investments by their very nature are applications of various disciplines. Therefore, this general practitioner module will build on the students’ knowledge from any relevant courses general finance, corporate finance, investment, economics, accounting, financial analysis, asset pricing, valuation, statistics, econometrics, financial mathematics, big data, machine learning, law, etc (none of such subjects is a specific prerequisite for this elective)
The students are strongly encouraged to make the practical link between their other subjects, in particular IB357 Investment Management, and the topics of this elective and how this could inform their future career or research decisions It would enable them to recognise how they can leverage their knowledge in other disciplines to pursue and develop a career in or around alternative or responsible investments

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Introduction to Alternative
Investments and Hedge Funds
Brief Introduction to SRI/ESG
Global Macro
Managed Futures Event
Driven Hedge Funds
Relative Value Hedge Funds
Equity Hedge Funds
Fund of Hedge Funds
Due Diligence of Fund Managers
Smart Beta
Private Equity incl. Venture Capital
Brief Introduction to (Real Assets Commodities, Real Estate, Natural Resources, Land, Infrastructure, Intellectual Property)
Fundamentals of Sustainable and Responsible Investment (SRI, ESG…)
Implementing SRI/ESG SRI/ESG and Alternative Investments

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate a good basic understanding and appreciation of the current issues around socially responsible investments.
• Apply relevant knowledge to a range of situations in assessing alternative investment opportunities.
• Apply appropriate techniques to allow detailed investigation of alternative investment options.
• Show creativity in the application of knowledge, together with a practical understanding of how established techniques of research and inquiry are used to develop and interpret knowledge of sustainable investment.

Indicative reading list

Textbook: Chambers, Anson, Black and Kazemi (2015), Alternative Investments CAIA Level I, 3rd edition, Wiley.

Subject specific skills

By the end of the module, the student should be able to:

• Show the ability to acquire and analyse data and information to evaluate their relevance in a sustainable investment context.
• Demonstrate a good conceptual understanding of ESG (Environmental, Social and Governance) fundamentals.

Transferable skills

By the end of the module, the student should be able to:

• Apply empirical tools relevant for alternative and sustainable investment to analyse data.
• Oral communication skills to discuss policy relevant questions.