From the Back Cover Alternative Investments: CAIA Level I The official reading for the CAIA Level I exam As the array of offerings continues to grow in the world of alternative investments, many asset classes have morphed more into industries, accompanied by a widening breadth of risk profiles and performance dispersion. Value will accrue to the astute and patient investor, and the CAIA Level I curriculum is an outstanding source for needed education. --Elena Manola-Bonthond, PhD, CAIA, Chief Investment Officer, CERN Pension Fund We have seen extraordinary interest and growth in alternative risk premia over the last decade. Investors continue to either seek better risk-adjusted returns through a widening set of uncorrelated offerings, or to access an asset class or strategy that is expected to produce higher absolute returns in the current low-yield environment. Regardless of motivation, financial education has never been more important, and the CAIA Association Level I textbook is an essential read for all investors. --Valerie Sill, CFA, CAIA, President and Chief Executive Officer, Dupont Capital Management While the first hedge fund may have been formed 80 years ago, wider institutional adoption of these and other alternative investments has mainly been a feature of the most recent 20 years. The CAIA Association and their important educational mandate is ever more relevant in this Fourth Edition text. It is essential foundational reading for investment professionals who wish to succeed in today's complex world. --David George, CFA, CAIA, Deputy Chief Investment Officer, Public Markets, Future Fund Management Agency Seasoned professionals looking to explore new areas within the alternative investment arena, as well as new industry participants seeking to establish a solid understanding of alternative investments, will find that Alternative Investments: CAIA Level I is the best way to achieve these goals, and the smartest way to prepare for the CAIA Level I exam.
From the front Cover Success in the rapidly-evolving area of alternative investments depends on a firm understanding of the concepts, tools, and practices associated with it, as well as an unwavering dedication to professionalism. Alternative Investments: CAIA Level I, Fourth Edition provides a comprehensive introduction to institutional-quality alternative investments and has been designed to serve as a resource for professionals, a textbook for university courses, and as the primary component for Level I of the Charter Program of the Chartered Alternative Investment Analyst (CAIA) Association. CAIA Association's Charter Program addresses the essential needs for professionals entering or advancing in the field of alternative investments. The CAIA Charter is the premier educational designation uniquely tailored to individuals specializing in institutional-quality alternative investments. Covering real assets, hedge funds and managed futures, private equity and private credit, as well as structured products and professional standards and ethics, the CAIA Charter demonstrates one's commitment to professionalism and command of the unique elements of these asset classes. The CAIA Program is comprised of a two-tier exam process (Level I and Level II) through which Candidates may earn the CAIA Charter. The Level I exam assesses understanding of various alternative classes and knowledge of the tools and techniques used to evaluate the risk-return attributes of each one. Written under the direction of the CAIA Association, with insights from many practicing and eminent professionals in this field, Alternative Investments: CAIA Level I best reflects the most current practices in the arena. It contains material on alternative investments that Level I Candidates need to know as they prepare for the exam. With coverage of everything from the characteristics of various strategies within each alternative asset class to portfolio management concepts central to alternative investments, the information found here will help build a solid foundation of knowledge about alternative investments markets. This comprehensive resource: Uses investment analytics to examine each alternative asset class. Examines quantitative techniques used by investment professionals. Addresses the unique attributes associated with the alternative investment space. Is supplemented by study materials available at www.caia.org. Since its inception in 2002, the CAIA Program's diverse curriculum has benefited a wide array of professionals--from institutional investors, investment advisers, alternative investment fund managers, and administrators, to accountants, lawyers, and academics. The CAIA Association is a global professional body dedicated to creating greater alignment, transparency, and education for all investors, with a specific emphasis on alternative investments. A Member-driven organization representing professionals in more than 95 countries, CAIA advocates for the highest ethical standards and provides authoritative, unbiased insight on a broad range of investment strategies and industry issues, key among them being efforts to bring greater diversification to portfolio construction decisions to achieve better long-term investor outcomes.