Alternative Investments

Module title	Alternative Investments
Module code	BEAM054
Academic year	2019/0
Credits	15
Module staff	Dr Monika Tarsalewska (Convenor)

Duration: Term	1	2	3
Duration: Weeks		11

Number students taking module (anticipated)	120

Module description

Summary:

Alternative investment strategies became increasingly popular among investors to achieve better returns. This module looks beyond the traditional investments such as shares and bonds. It covers a range of topics that introduce the world of alternative investment strategies; in particular hedge funds, private equity and real estate investment trusts. Lectures are followed by in-depth practical examples using statistical packages, discussions and tools that show the real world implications.

Additional Information:

Internationalisation

The course explains differences of funds with respect to risk, regulation and organizational structure around the world. These differences are crucial to understanding the impact it has on the fund performance persistence and an ability to raise funds.

Employability

This course is addressed to students interested in pursuing a career within corporations, institutional investors, investment funds or other similar investment or consulting organizations. Students develop necessary understanding of alternative investment class to work within the industry as entrepreneurs seeking for financing from such investors, as lenders to firms, as money managers looking for alternative investments assets, as investment bankers advising on going public transactions or on mergers and acquisitions.

Module aims - intentions of the module

The course provides an advanced analysis of major issues associated with alternative investment strategies. In particular, we will discuss structure and governance of alternative investment funds, differences between private equity and hedge funds, fundraising, financial contracts and performance assessment. We will discuss the other types of alternative investments such as REITs. The international differences of funds across various countries will be also addressed.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

1. comprehensively understand the objectives of alternative investment strategies
2. deeply understand the value creation of alternative investment
3. comprehend the governance mechanism of investment fund
4. undertake a range of financial and statistical calculations
5. effectively demonstrate familiarity with public policy towards alternative investments across the world

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

6. independently interpret and understand the characteristics of financial data
7. understand related academic publications, and how to implement them in developing investment strategies
8. understand the principles of portfolio performance in terms of risk and return analysis
9. undertake the valuation of companies

ILO: Personal and key skills

On successfully completing the module you will be able to...

10. develop writing skills, presentation and critical analysis
11. work in teams
12. solve applied problems

Syllabus plan

Alternative versus Traditional Investments
Hedge Funds Introduction: Risk, Regulation, and Organizational Structure
Hedge Fund Strategies and Performance
Empirical Methods to Study Hedge Funds
Private Equity Fund: Fundraising, Agency Problems, Limited Partnership Agreements and Compensation Contracts, Management fees, J-curve and Returns
Venture Capital: Valuation of Investments, Performance and Exit Strategies
LBOs: Classic LBO Model
Debt as Private Equity
The Economics of Private Equity: Distribution of returns and international comparison
REITs and Real Estate

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
31	119	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning and Teaching	22 (11 x 2 hour lectures)	Lectures
Scheduled Learning and Teaching	9 (9 x 1 hour class room discussions)	Tutorials

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Individually written report	Max. 250 words		Feedback during practical classes and suggested solutions provided on ELE

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
30	70	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Group presentation and written report (including peer assessment)	30	Max. 1500 words	1-12	Standard feedback sheet
Final written exam	70	1.5 hours	1-10	Qualitative and quantitative feedback

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
Group presentation, written report and exam	Final Written Exam (100%) 1.5 hours	1-10	Aug/Sep

Indicative learning resources - Basic reading

Part of the course is covered in the following textbooks:

Hedge Fund Structure, Regulation and Performance around the World, by Cumming, D., Dai, N. and S. Johan, Oxford University Press (2013)

Venture Capital and Private Equity Contracting: An International Perspective, by Cumming, D. and S. Johan, Elsevier (2014)

An introduction to investment banks, hedge funds, and private equity, by Stowell D., Elsevier (2010)

Indicative learning resources - Other resources

to be advised during the course

Key words search

Hedge funds; Private Equity; Real Estate

Credit value	15
Module ECTS	7.5
Module pre-requisites	None
Module co-requisites	None
NQF level (module)	7
Available as distance learning?	No
Origin date	14/11/2013
Last revision date	07/08/2014