Course Content
In an era of significant market turmoil that is institutional as well as individual, investors look beyond traditional investment vehicles such as bonds and shares.
The purpose of this course is to explore the world of alternative investments, such as hedge funds, private equity / venture capital funds, real estate, and commodities either directly or through funds of funds. A substantial increase in the price of gold over the last five years is just one example of a successful alternative investment at work.
Course topics will include:
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Overview of Alternative Assets
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Hedge Funds
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A Hedge Fund Investment Program
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Due Diligence
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Risk Management
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Regulation
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Funds of Funds
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Commodities and Managed Futures
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Investing in Commodity Futures
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Managed Futures
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Venture Capital (VC)
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Raising Funds
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Valuation of Investments
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Initial Public Offerings (IPOs)
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Leveraged Buyouts (LBOs)
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Financing and Leverage
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LBO valuation
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Value Added
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Exit Strategies
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Real Estate
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Real Estate and an Investment Asset
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Valuation
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Securitisation and Mortgage Backed Securities (MBSs)
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Real Estate Investment Trusts (REITs)
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Demographics
There will also be guest lectures by practitioners from the hedge fund and private equity industries.
The course will combine theory with empirical exercises, allowing students to get a hands-on experience. We want to identify what the return-risk characteristics of alternative investments are, what attributes to their appeal, how to understand related technical publications, and how to construct a portfolio using them.
As part of class work, students will be encouraged to work with data (in Excel). Particular data work will include measuring the risks of investment portfolios, calculating the alphas of hedge fund strategies, evaluating an LBO deal, evaluating a VC deal and pricing an MBS.
World-class LSE teaching
The LSE’s Department of Finance has grown in recent years to become one of the largest and most highly-regarded finance groups in the UK and Europe. On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s finance faculty.
Texts*
"Handbook of Alternative Assets", by Mark J. P. Anson, John Wiley & Sons (2006).
*A more detailed reading list will be supplied prior to the start of the programme
**Course content, faculty and dates may be subject to change without prior notice