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

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: Two examinations

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

*Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements.

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

This course requires students to have a basic understanding of mathematics and statistics. This can be evidenced through transcripts showing previous exposure to Introductory Finance (to the level of FM250) or Introductory Microeconomics (to the level of EC101).

• Overview of alternative investments
• Due diligence, risk management and regulation
• Hedge Funds
• Commodities and Managed Futures
• Venture Capital (VC) and raising funds
• Initial Public Offerings (IPOs) and Leveraged Buyouts (LBOs)
• Financing, valuation, leverage and exit strategies
• Real Estate and Real Estate Investment Trusts (REITs)
• Securitisation and Mortgage Backed Securities (MBSs)

This course is delivered through a combination of lectures, guest speaker lectures, class discussions and readings. As part of classwork, students will be encouraged to work with data, using Excel, to apply the theory to real-world scenarios.

The course is assessed through two written examinations. One mid-session examination (40%) and one final examination (60%). In preparation for the examinations, students will be given problem sets throughout the course, the solutions to which will be discussed in class.

Further details will be provided at the beginning of the course.

• Understand the return-risk characteristics of different alternative investments
• Apply the course theory to measure the risks attached to different investment portfolios
• Calculate the alphas of hedge fund strategies
• Evaluate a leveraged buyout deal and venture capital deal

This course is ideal if you are wanting to pursue a career in the financial services industry or wish to develop your own investment portfolio. The course will help you develop practical approaches using industry examples that will prepare you for roles in finance, such as in hedge funds, venture capital, private equity or trading. It is equally applicable to develop the skills needed for further academic study in this field.

LSE’s Department of Finance ranks among the most prestigious in the world. The Department, along with the Departments of Accounting and Management, was ranked as the UK leader for Business and Management Studies in the most recent Research Excellence Framework.

Students have privileged access to renowned LSE faculty, global thought-leaders and some of the foremost researchers in their field. The Department is devoted to excellence in teaching and research on subjects including corporate finance, asset pricing theory, risk management, empirical analysis of capital markets, behavioural finance, portfolio analysis, derivatives pricing, microstructure and financial econometrics. From foundation level to advanced courses, students build real-world skills and gain exposure to critical issues, questions and state-of-the-art thinking on the most relevant topics.

Dr Hongda Zhong (Session One and Three)
Assistant Professor of Finance, Department of Finance

Dr Dong Lou (Session One)
Associate Professor of Finance, Department of Finance

Dr Huan Tang (Session Three)
Assistant Professor of Finance, Department of Finance

"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