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CAIA: Chapter 1 What is an Alternative Investment

What is an Alternative Investment

What is an Alternative Investment

Kartei Details

Karten 36
Sprache English
Kategorie Finanzen
Stufe Universität
Erstellt / Aktualisiert 16.12.2014 / 23.07.2019
Lizenzierung Keine Angabe
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Institutional-quality alternative investment (Focus of CAIA curriculum)

An institutional-quality investment is the type of investment that financial institutions such as pension funds or endowments might include in their holdings becuase they are expected to deliver reasonable returns at an acceptable level of risk.

Real Estate

Real estate focuses on land and improvements that are permanently affied, like buildings. Real estate was a significant asset class long before stock and bonds become important. In times prior to the industrial age, land was the single most valuable asset


..includes both the land and the timber of forests of tree species typically used in the forest products industry. While the underlying land is clearly real estate, the timber on the land is not typically regarded as real estate since it is not permanent.

Infrastrucutre investments

...are claims on the income of toll roads, regulated utilities, ports, airports, and other real assets taht are traditionally held and controlled by the public sector.

Financial asset

...the opposit of a real asset

Real Assets..

...focuses on investments in which the unterlying assets involve direct ownership of nonfinancial assets rather than ownership through financial assets such as the securities of manufacturing or service enterprises.

Hedge funds

privately organized investment vehicle that uses its less regulated nature to generate investment opportunites that are substantially destinct from opportunities offered by traditional investments restricitng use of derivatives and leverage.


...are homogenous goods available in large quantities, such as energy products, agricultural products, metals, and bulding materials. In CAIA commdoities are mainly future contracts.