Alternative Management Strategies: Private Equity, Real-Estate, Commodities, Hedge Funds

INTRODUCTION

Role of institutional investors Events affecting assets

• Stock market crash
• Interest rate rise
• Real-estate crash
• Inflation
• Depreciation of the domestic currency
• Recession
• Taxation

Traditional investments

• Traditional forms of investment: equities (domestic and international), government bonds, corporate bonds, cash
• Risk/reward profile of traditional investments over time: establishing an efficient frontier
• Reaction of traditional investments to adverse scenarios

HOW TO DIVERSIFY A PORTFOLIO: ALTERNATIVE INVESTMENT STRATEGIES

Hedge funds

• Absolute performance strategies (convertible arbitrage, long-short equities, fixed income, etc.)
• Directional strategies (global macro, short bias, etc.) . . . .
• Definitions and examples
• Past performance (reaction to crises)
• Advantages, limits and risks
• Contribution to establishing a new efficient frontier

Tangible assets: real-estate, infrastructure (motorways), forestry

• Investment vehicles
• Risk/reward profile
• Past performance (reaction to crises)
• Advantages, limits and risks, taxation
• Contribution to establishing a new efficient frontier

Commodities

• Investment vehicles
• Risk/reward profile
• Past performance (reaction to crises)
• Advantages, limits and risks

Gold

• Investment vehicles
• Risk/reward profile
• Past performance (reaction to crises)
• Advantages, limits and risks
• Gold: a currency like any other?
• Contribution to establishing a new efficient frontier

Private equity: venture capital and LBO

• Investment vehicles
• Advantages, limits and risks, taxation
• Past performance (reaction to crises)
• Contribution to establishing a new efficient frontier

IN-DEPTH

• Constructing the best portfolio in light of given macroeconomic and fiscal forecasts
• Institutional investors' current investment structure
• Back testing