Getting Started in Alternative Investments

by Dearth, Matthew; Ku, Swee Yong

• ISBN13: 9781119860280
• ISBN10: 1119860288
• Edition: 1st
• Format: Paperback
• Copyright: 2023-04-24
• Publisher: Wiley

Summary

Explore exciting alternatives to traditional securities in this eye-opening investment resource

In Getting Started in Alternative Investments: Understanding the World of Investment Strategies, a team of accomplished investment and finance experts delivers a concise and robust exploration of mainstream and alternative investments. From cryptocurrencies to streetwear, you'll learn about new opportunities for investment capturing the imagination of the latest generation of investors.

In this book, the authors discuss investments as varied as catastrophe bonds and non-fungible tokens, as well as the growing influence of the ESG (Environmental, Social, and Governance) movement on different financial instruments. It also examines:

• More "traditional" alternatives to typical securities, like venture capital, private equity, and real estate-related investments
• "Modern" alternative investments, including alternative finance (e.g., peer-to-peer lending), insurance-linked securities, and impact investing
• Niche assets, such as intellectual property (e.g., royalties and patents), fractional ownership of collectibles, and income-sharing agreements

Getting Started in Alternative Investments is a must-read book for individual and retail investors, as well as investment and finance professionals seeking to expand their investment horizons beyond traditional stocks and bonds.

Author Biography

Matthew Dearth, PhD is Adjunct Faculty of Finance at Singapore Management University, where he teaches graduate-level finance courses on sustainable investing and alternative investments. He is Managing Director at Silvercrest Asset Management, a leading independent advisory and financial services firm created to provide traditional and alternative asset management and focused family office services to wealthy families and select institutional investors.

Swee Yong Ku is a founder of International Property Advisor, a licenced real estate consultancy. He was an adjunct faculty at the Singapore Management University’s Lee Kong Chian School of Business and at the National University of Singapore’s Department of Real Estate. His recent research interests are focused on the impact that technology has on the built environment and consequently how real estate investments and finance may be affected.

Table of Contents

Introduction

Chapter One: Introduction to Alternatives

1.1         What Are Alternatives?

1.2         Investing In Alternatives

1.2.1      The Market For Alternatives

1.2.2      Managing Alternative Investment Funds

1.2.3      Alternative Techniques

1.2.4      Performance Measurement

1.2.5      Due Diligence

1.3         Diversification

1.4         Regulation

1.4.1      Regulatory Protections for Investors

1.4.2      Regulations for Fund Managers

1.5         Summary

Chapter Two: Traditional Alternatives

2.1         Venture Capital

2.2         Private Equity

2.3         Hedge Funds

2.3.1      Fundamental Long-Short

2.3.2      Quantitative Long-Short

2.3.3      Merger Arbitrage

2.3.4      Activist

2.4         Infrastructure

2.5         Land and Commodities

2.6         Funds of Funds

2.7         Summary

Chapter Three: Spotlight on Real Estate

3.1         Global Real Estate Market

3.2         Understanding Real Estate Segments

3.3         Private Real Estate Investments and Finance

3.4         Public Real Estate Investments and Finance

3.5         Future trends

Chapter Four: Modern Alternatives

4.1         Private Credit and Alternative Finance

4.1.1      Direct Lending

4.1.2      Marketplace Lending

4.1.3      Venture Debt

4.1.4      Other Credit

4.1.5      Litigation Finance

4.2         Insurance-Related

4.2.1      Catastrophe Bonds and ILS

4.2.2      Life Settlement

4.3         Impact Investing

4.4         Blockchain, Coins, and Non-Fungible Tokens

4.4.1      Blockchains and Coins

4.4.2      Non-Fungible Tokens (NFTs)

4.4.3      Investment Strategies

4.5         Tokenization and Metaverse

4.5.1      Tokenization      

4.5.2      Metaverse

4.6         Collectibles

4.6.1      Traditional: Art, Jewelry, Antiques, Stamps and Coins

4.6.2      Modern: Wine, Whisky, Watches, Cars, Streetwear, and Other

Collectibles

4.7         Other Opportunities

4.7.1      Patents, Royalties, and IP

4.7.2      Income-Sharing Agreements

4.7.3      The Rest

4.8         Summary

Chapter Five: Building Portfolios

5.1         Planning

5.2         Traditional Portfolios

5.2.1      Equal Weighted

5.2.2      “60/40” Portfolio

5.3         Mean-Variance Optimization

5.4         Adding Alternative Investments

5.5         Endowment Model

5.6         Risk Budgets, Risk Parity

5.7         Summary

Glossary

Appendix