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Description of Alternative Investment Strategies

This ground-breaking new book is the first of its kind to explore the investment potential presented presented by a whole range of alternative strategies. This investor-led publication covers strategies such as private equity and venture capital, hedge funds, managed futures and currency management, as well as providing a detailed insight into developments affecting asset-backed securities (CLOs/CBOs), emerging market fixed-income debt, credit and insurance derivatives and risk management within these strategies. The book also encompasses rating methodologies from Moody's and Fitch. Edited by Sohail Jaffer of the Alternative Investment Management Association (AIMA), contributors range from pension funds to lawyers, banks to brokers, ensuring the reader of a comprehensive assessment.

Extract from Foreword

'The Alternative Investment Management Association (AIMA) is the leading global association for alternative investments whose membership comprises leaders within the managed futures, hedge fund, and currency management sectors. AIMA's objectives include promoting awareness of alternative (or non-traditional) investments, as well as maintaining high professional standards among its global membership.
Through our many activities over recent years, we have seen increasing demand for non-traditional investments as institutional and private investors seek absolute-return strategies targeting a positive return in all market environments and maintaining low correlations with traditional asset classes.

This has led to the development of the alternative investment industry, which, it is generally accepted, includes private equity and venture capital; newer forms of asset-backed securities, such as collateralised loan and bond obligations; insurance- and credit-derivative-linked notes; real estate; and skill-based strategies such as hedge funds, managed futures and commodities.

With over US$1 trillion under management within the alternative investment sector in 1997 and a projected annual growth of 15-20 per cent over the next five years, the need for a clear outline on what these investments comprise is foremost in answering investors' many questions.
We are seeing institutional investors, in some instances, beginning to allocate more than the average 5 per cent to alternative investments as they begin to understand their benefits and this trend is expected to spread throughout the institutions. Many alternative investments, such as private equity and venture capital, are well suited to institutions as they understand and, consequently, seek long-term investment horizons, say 10 years, as long as the returns are achieved. Historically, the expected returns are around 15 per cent which, over the past 15 years, is something hedge funds, for instance, have delivered net of all costs. Hedge funds, as any other investment, can go up or down, but generally these types of investments, with their ability to move in and out of various asset classes very rapidly, have a greater ability to recover faster than traditional investment vehicles.

There are three primary advantages to alternative investments: diversification - i.e., low correlations with the traditional asset classes - which, if handled correctly, can result in improved portfolio stability; ability to be tailored to meet the investor's needs, thereby delivering very specific risk/return trade-offs; and potential to offer a more efficient way of accessing certain markets and asset classes.'

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Title Information

ISBN:

9781855646360

Pages:

384 pages

Format:

Paperback

Product Code:

9528

Publisher:

Euromoney Institutional Investor

Published:

01/12/1998

Edition:

1st Edition

Press and Industry Reviews

'An essential tool for any investor'
Gilbert de Botton, Chairman � Global Asset Management

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Contents of Alternative Investment Strategies

Foreword
1. Alternative investment strategies: an investor's viewpoint

Section I: Private equity and venture capital
2. Private equity investing
3. Venture capital: an overview of the European industry

Section II: Skill-based strategies
4. Market-neutral strategies
5. Multi-manager products and institutional investors
6. Managed futures: a growth area
7. The strategic case for commodities
8. Managed currencies: a powerful alternative investment strategy
9. Capturing diversified Alpha from the global currency markets

Section III: Hedge-fund performance and risk management
10. Structural and selection criteria for institutional portfolios
11. Performance measurement and hedge funds
12. A comparison of return patterns in traditional and alternative investments

Section IV: Emerging markets
13. New techniques in emerging-market fund management

Section V: Asset-backed securities
14. The evolution towards investor-driven alternative investments

Section VI: Insurance and credit derivatives
15. Insurance derivatives market and securitisation
16. Insurance-linked securities
17. Credit derivatives: revolutionising financial markets

Section VII: Rating methodologies
18. Credit arbitrage using event-linked synthetic securities
19. Credit- and insurance-linked notes and collateralised debt obligations

Section VIII: Regulatory environment
20. Marketing alternative investment funds: law and regulation
21. Taxation of hedge funds

Appendix A: A portfolio approach to institutional investing
Appendix B: Executive summary: 1997 report on alternative investing
Appendix C: Due diligence questionnaire