Alternative Investments

The complete guide to alternative investments, from experts working with CFA Institute

Alternative Investments is the definitive guide to understanding non-traditional asset classes. Alternatives are a disparate group of investments that are distinguished from long-only, publicly traded investments in stocks, bonds, and cash (often referred to as traditional investments). Alternative investments include real estate, commodities, infrastructure, and other non-traditional investments such as private equity or debt and hedge funds. They are attractive to investors because of the potential for portfolio diversification resulting in a higher risk-adjusted return for the portfolio.

Alternative Investments and its accompanying workbook (sold separately) lead students and investment professionals through the many characteristics of non-traditional assets, including:

• Narrow specialization of the investment managers
• Relatively low correlation of returns with those of traditional investments
• Less regulation and less transparency than traditional investments
• Limited historical risk and return data
• Unique legal and tax considerations
• Higher fees, often including performance or incentive fees
• Concentrated portfolios
• Restrictions on redemptions (i.e. “lockups” and “gates”)

CFA Institute is the world's premier association for investment professionals, and the governing body for the CFA^® Program, CIPM^® Program, CFA Institute ESG Investing Certificate, and Investment Foundations^® Program. Those seeking a deeper understanding of the markets, mechanisms, and use of alternatives will value the level of expertise CFA Institute brings to the discussion, providing a clear, comprehensive resource for students and professionals alike. Whether used alone or in conjunction with the companion workbook, Alternative Investments offers a complete course in alternative investments and their role in investment management.