Programmes

Alternative Investments

  • Summer schools
  • Department of Finance
  • Application code SS-FM230
  • Starting 2018

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. 

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 course will combine theory with empirical exercises, allowing students to get a hands-on experience.

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.

Dates for 2018 to be confirmed


Session: One
Dates: 19 June - 7 July 2017 
Lecturers: Dr Hongda Zhong and Dr Andrea Tamoni


Session: Three
Dates: 31 July - 18 August 2017
Lecturers:  Dr Hongda Zhong and Dr Andrea Tamoni 

(Due to popularity, this course is repeated and can be taken in either of the sessions outlined above.)


 

Programme details

Key facts

Level: 200 level. Read more information on levels in our FAQs

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: One examination and one essay

Typical credit**: 3-4 credits (US) 7.5 ECTS points (EU)


*Assessment is optional

**You will need to check with your home institution

For more information on exams and credit, read Teaching and assessment

Prerequisites

Basic mathematics, and statistics. Introductory Finance (to the level of FM250). Introductory Microeconomics (to the level of EC101).

Programme structure

  • Overview of Alternative Assets
  • Hedge Funds
    • A Hedge Fund Investment Program
    • Due Diligence
    • Risk Management
    • Regulation
    • Funds of Funds
  • Commodities and Managed Futures
    • Investing in Commodity Futures
    • Managed Futures
  • Venture Capital (VC)
    • Raising Funds
    • Valuation of Investments
    • Initial Public Offerings (IPOs)
  • Leveraged Buyouts (LBOs)
    • Financing and Leverage
    • LBO valuation
    • Value Added
    • Exit Strategies
  • Real Estate
    • Real Estate and an Investment Asset
    • Valuation
    • Securitisation and Mortgage Backed Securities (MBSs)
    • Real Estate Investment Trusts (REITs)
    • Demographics

Course outcomes

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.

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. 

Reading materials

"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

Applications open in November - Join our mailing list

Applications open in November - Join our mailing list

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Related programmes

Summer Schools Advanced Corporate Finance (2018)

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Summer Schools Alternative Investments (2018)

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Summer Schools Analysis and Management of Financial Risk (2018)

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Summer Schools Finance (2018)

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Summer Schools Financial Markets (2018)

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