Alternative Investments (AI)

Question 1

Hedge Funds

Answer 1

Characteristics

• use of leverage
• absolute basis e.g. 20% / relative basis e.g. 5% above S&P
• hedge fund indices may not reflect actual performance
  
  • survivorship bias + backfill bias
• restrictions on redemption Hedge Funds
  lockup period:
  notice period: 赎回前30-90天提前通知
  structure
  LP: 出钱的 有限责任 出的钱赔光拉倒 不用倒贴钱
  GP: 出力的 如果爆仓要还钱

Question 2

Private Equity

Question 3

Real Estate

Answer 3

Co

Question 4

Commodities

Question 5

Infrastructure

Question 6

AI Strategies

Question 7

AI Potential Benefits and Risks

Question 8

AI Fee Structures

Question 9

AI Due Diligence

Question 10

Potential Benefits of AI in the context of Portfolio Management

Question 11

Issues in valuing and calculating returns on hedge funds

Question 12

Issues in valuing and calculating returns on Private Equity

Question 13

Issues in valuing and calculating returns on Real Estate

Question 14

Issues in valuing and calculating returns on Commodities

Question 15

Issues in valuing and calculating returns on Infrastructure

Question 16

Risk Management of AI

Question 17

Calculate and interpret management and incentive fees

Question 18

Net-of-fees returns to hedge funds

Question 19

Alternative Investments vs traditional investments

Answer 19

• traditional: long-only investments in stocks, bonds, and cash
• alternative: outside the scope of traditional investments, extensive
  use of leverage

Question 20

High water Mark

Question 21

Hurdle Rate

Answer 21

In

Question 22

incentive Fee

Question 23

2 and 20:

Answer 23

2% management fee plus 20% incentive fee