Loading lesson

Alternative investments features, structures, fees, and performance

Alternative investments · Lesson 1 of 3

Lesson 1 of 3

Ask a tutor

Lesson 1 of 3 · Alternative investments

Alternative investments features, structures, fees, and performance

3 quick checks≈2% of the testCore

Reading is free. Sign in to tick off lessons, keep your place and track your mastery.

By the end you’ll be able to

describe the major categories of alternative investments and their common features, including limited liquidity, less transparent pricing, specialized legal structures, and distinctive cash flow patterns
explain how alternative investments can affect portfolio diversification, expected return, and risk exposures relative to traditional investments

0% read

calculate and interpret management fees, incentive fees, carried interest, and investor net-of-fee returns under common fee arrangements, including high-water-mark and hurdle-rate concepts when applicable

interpret key due diligence considerations for alternative investments, including valuation challenges, leverage, liquidity terms, governance, and alignment of interests

evaluate the advantages and disadvantages of investing in alternative investments from the perspective of different types of investors

This lesson hasn’t been written yet

CFA Level I lessons are written from the official syllabus the first time a learner opens them, then saved for everyone. Sign in and this one is written for you in a minute or two. It’s free.

Sign in Create a free account