Chapter 21: Alternative Investments: Strategies and Performance

In this section

• Alternative Investments: Strategies and Performance - Overview of Chapter 21
  Explore the diverse world of alternative investments, their strategies, and performance measurement tools. Understand the significance of these investments in diversifying portfolios and the importance of due diligence in the Canadian market.
• Learning Objectives for Alternative Investments: Strategies and Performance
  Explore the learning objectives for understanding alternative investment strategies, risk measures, benchmarking, and due diligence in the context of Canadian financial regulations.
• Alternative Investment Strategies: Unlocking Higher Returns and Diversification
  Explore the world of alternative investment strategies, including relative value, event-driven, and directional strategies, and their role in achieving higher returns and diversification in the Canadian financial landscape.
• Relative Value Strategies: Exploiting Pricing Inefficiencies in Canadian Markets
  Explore relative value strategies in Canadian finance, focusing on equity market-neutral, convertible arbitrage, and fixed-income arbitrage strategies to exploit pricing inefficiencies.
• Event-Driven Strategies: Profiting from Corporate Events
  Explore event-driven strategies in finance, focusing on profiting from corporate events like mergers, high-yield bonds, and distressed securities, with a Canadian perspective.
• Directional Strategies in Alternative Investments: A Comprehensive Guide
  Explore directional strategies in alternative investments, including long/short equity, global macro, emerging markets, dedicated short bias, and managed futures strategies, with a focus on Canadian financial markets.
• Multi-Strategy Funds: Diversification and Risk Management
  Explore the intricacies of multi-strategy funds, their benefits, and how they compare to fund-of-funds. Learn about diversification, risk management, and Canadian financial regulations.
• Leveraged ETF Strategy: Amplifying Returns with Leveraged ETFs
  Explore the intricacies of leveraged ETFs, their objectives, risks, and strategies within the Canadian financial landscape.
• Alternative Strategy Fund Performance Measurement: Evaluating Returns and Risks
  Explore the essential tools and metrics for measuring the performance of alternative strategy funds, with a focus on Canadian financial regulations and practices.
• Risk Measures in Alternative Investments: Understanding Volatility and Performance
  Explore various risk measures used to assess alternative investments, including absolute risk, standard deviation, skew, kurtosis, drawdown, and more. Learn how these metrics apply to Canadian financial markets and enhance investment strategies.
• Risk-Adjusted Return Measures: Evaluating Fund Performance with Sharpe, Jensen's Alpha, Sortino, Calmar, and Sterling Ratios
  Explore the importance of risk-adjusted return measures in evaluating fund performance, including Sharpe Ratio, Jensen’s Alpha, Sortino Ratio, Calmar Ratio, and Sterling Ratio, with a focus on Canadian financial contexts.
• Performance Benchmarking: Evaluating Alternative Investments
  Explore the intricacies of performance benchmarking in alternative investments, focusing on Canadian financial contexts and strategies.
• Due Diligence Process for Alternative Investments
  Explore the comprehensive due diligence process for investing in alternative strategy funds, focusing on key areas such as investment management, risk analysis, operations, and performance.
• Suitability of Alternative Investment Strategies: A Comprehensive Guide
  Explore the suitability of alternative investment strategies, focusing on investor characteristics, risk mitigation, and Canadian regulatory considerations.
• Relative Value Strategy Details: In-Depth Analysis of Strategies and Case Studies
  Explore the intricacies of relative value strategies, focusing on identifying pricing inefficiencies and successful trades within the Canadian financial landscape.
• Event-Driven Strategy Details: Exploring Opportunities in Mergers, Acquisitions, and Restructurings
  Explore the intricacies of event-driven strategies in finance, focusing on mergers, acquisitions, restructurings, and bankruptcies. Understand the risks and rewards, and learn how to navigate these opportunities within the Canadian financial landscape.
• Directional Strategy Details in Alternative Investments
  Explore the intricacies of directional strategies in alternative investments, focusing on market trends and strategies like long/short equity, global macro, and more.
• Equity Market-Neutral Strategy: Achieving Consistent Returns by Eliminating Market Risk
  Explore the intricacies of equity market-neutral strategies, their mechanics, benefits, and applications within the Canadian financial landscape.
• Convertible Arbitrage Strategy: Enhancing Risk-Adjusted Returns
  Explore convertible arbitrage strategies, hedging techniques, and their role in enhancing risk-adjusted returns within the Canadian financial landscape.
• Fixed-Income Arbitrage Strategy: Exploiting Inefficiencies in Fixed-Income Markets
  Explore fixed-income arbitrage strategies, focusing on exploiting inefficiencies in fixed-income markets, leveraging returns, and understanding associated risks within the Canadian financial landscape.
• Merger Arbitrage Strategy: Profiting from Mergers and Acquisitions
  Explore the intricacies of merger arbitrage strategies, including identification, execution, and risk management in the context of Canadian financial markets.
• High-Yield Bond Strategy: Maximizing Returns with High-Yield Bonds
  Explore high-yield bond strategies focusing on below-investment-grade bonds to achieve higher returns, understanding their risk profile, and how they can enhance portfolio diversification.
• Distressed Securities Strategy: Investing in Financially Troubled Companies
  Explore distressed securities strategies, focusing on investing in financially troubled companies, identifying and valuing opportunities, and understanding associated risks and rewards.
• Long/Short Equity Strategy: Mastering Market Dynamics
  Explore the intricacies of long/short equity strategies, focusing on capitalizing on market inefficiencies while managing risk through strategic portfolio construction and hedging techniques.
• Global Macro Strategy: Navigating Global Markets with Macroeconomic Insights
  Explore the intricacies of global macro strategies, focusing on large-scale economic and political changes across global markets, and learn how managers utilize macroeconomic indicators to make informed investment decisions.
• Emerging Markets Strategy: Unlocking Growth in Developing Economies
  Explore emerging markets strategies, growth potential, risks, and diversification benefits in the Canadian financial landscape.
• Dedicated Short Bias Strategy: Profiting from Market Declines
  Explore the intricacies of dedicated short bias strategies, focusing on their implementation, risk management, and relevance in the Canadian financial landscape.
• Managed Futures Strategy: Capturing Market Trends with Futures Contracts
  Explore the intricacies of managed futures strategies, focusing on trend-following and momentum-based approaches, and their role in portfolio diversification and liquidity.
• Performance Measurement Tools for Alternative Investments
  Explore the essential performance measurement tools and methodologies for evaluating alternative investment strategies, focusing on statistical measures and Canadian financial contexts.
• Comprehensive Due Diligence Process for Alternative Investments
  Explore the comprehensive due diligence process for alternative investment strategy funds, focusing on evaluating investment managers, strategies, and key areas of investigation.
• Benchmarking Alternative Investments: Strategies and Performance
  Explore the process of benchmarking alternative investments, selecting relevant benchmarks, and assessing fund performance within the Canadian financial landscape.
• Investor Suitability for Liquid Alternatives: Understanding Profiles and Strategies
  Explore investor profiles suitable for liquid alternatives, focusing on investment knowledge, objectives, and risk tolerance to enhance portfolio performance.
• Key Due Diligence Areas in Alternative Investments
  Explore the essential due diligence areas for evaluating alternative investments, focusing on investment management structure, risk analysis, operations, fund structure, performance, account composition, and fees.
• Relationship Disclosure Information: Enhancing Transparency in Fund Management
  Explore the critical role of relationship disclosure information in fostering transparency between fund managers and investors, detailing key components and compliance with Canadian regulations.
• Alternative Strategy Fund Performance Measurement: Tools and Techniques
  Explore the tools and techniques for measuring the performance of alternative strategy funds, emphasizing risk-adjusted returns and Canadian financial regulations.
• Conclusion of Chapter 21: Alternative Investments Strategies and Performance
  Explore the conclusion of Chapter 21, focusing on alternative investment strategies, their performance, and the importance of due diligence in the Canadian financial landscape.
• Glossary for Alternative Investments: Strategies and Performance
  Comprehensive glossary for Chapter 21 of the CSC® Exam Prep Guide: Volume 2, covering key terms in alternative investments, strategies, and performance.
• Comprehensive Resources for Alternative Investments: Strategies and Performance
  Explore a curated list of books, courses, and websites to deepen your understanding of alternative investments, focusing on strategies and performance within the Canadian financial landscape.