Alternative Investments – Subject Index

Modules

#ModuleLOSPages
M01AI Features, Methods and Structures1.a–1.cp.2–29
M02AI Performance and Returns2.a–2.bp.167+
M03Investments in Private Capital: Equity and Debt3.a–3.cp.30–62
M04Real Estate and Infrastructure4.a–4.dp.63–85
M05Natural Resources5.a–5.cp.86–106
M06Hedge Funds6.a–6.cp.107–134
M07Introduction to Digital Assets7.a–7.dp.135–166

SAPP Study Order

  1. M01 – AI Features, Methods and Structures
  2. M03 – Investments in Private Capital
  3. M04 – Real Estate and Infrastructure
  4. M05 – Natural Resources
  5. M06 – Hedge Funds
  6. M07 – Introduction to Digital Assets
  7. M02 – AI Performance and Returns

Sources

Key Themes

  • Illiquidity premium — Alternative investments compensate for lower liquidity with potentially higher returns.
  • Diversification — Low correlation with traditional assets improves portfolio risk-adjusted returns.
  • Fee structures — Management fees + performance fees (carried interest) with hurdle rates and high-water marks.
  • Valuation challenges — Lack of observable market prices, stale pricing, and appraisal-based valuations.
  • J-curve effect — Early negative returns followed by value creation in later fund years.

6 items under this folder.