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Alternative investments are too big an area for investors to ignore these days, and for that reason they feature prominently on the CFA exam. In this course, we will cover alternative investments at a high level across the landscape. We will talk about the different types of alternatives, the benefit to a portfolio if used properly, and since alternative investments can be expensive, we will cover the fee structure as well. Finally, we will wrap up with some tips and points to remember when taking the exam.

Learning Objectives

  • Discover hedge funds and private equity investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.
  • Explore real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.
  • Explore potential benefits of alternative investments in the context of portfolio management.
  • Discover, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds.
  • Recognize and understand high level strategies for dealing with Alternative investment questions on the CFA.
Last updated/reviewed: July 26, 2020

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesCFA Level 1 Preparation

  1. CFA Level 1 Prep: Introduction to the CFA Exam
  2. CFA Level 1 Prep: 1 - Ethics and Professional Standards
  3. CFA Level 1 Prep: 2 - Quantitative Methods
  4. CFA Level 1 Prep: 3 - Economics
  5. CFA Level 1 Prep: 4 - Financial Reporting and Analysis
  6. CFA Level 1 Prep: 5 - Corporate Finance
  7. CFA Level 1 Prep: 6 - Equities Markets
  8. CFA Level 1 Prep: 7 - Fixed Income
  9. CFA Level 1 Prep: 8 - Derivatives
  10. CFA Level 1 Prep: 9 - Alternative Investments
  11. CFA Level 1 Prep: 10 - Portfolio Management

Prerequisites

Course Complexity: Advanced

No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  9:46Hedge Funds
  14:46Alternative Investments
  8:06Alternative Investors
  5:58Performance Fees in Alts
  2:38Test Taking Strategies for The Alternative Section
CONTINUOUS PLAY
  41:16 CFA Level 1 Prep: 9 - Alternative Investments
SUPPORTING MATERIAL
  PDFSlides: CFA Level 1 Prep: 9 - Alternative Investments
  PDFCFA Level 1 Prep: 9 - Alternative Investments Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM