CFA Level 1 Prep: 9 - Alternative Investments 1 CPE

Alternative investments are too big an area for investors to ignore these days, and for that reason they feature prominently on the CFA exam. In this course, we will cover alternative investments at a high level across the landscape. We will talk about the different types of alternatives, the benefit to a portfolio if used properly, and since alternative investments can be expensive, we will cover the fee structure as well. Finally, we will wrap up with some tips and points to remember when taking the exam.

Prerequisites

No advanced preparation or prerequisites are required for this course. 

Learning Objective

• Discover hedge funds and private equity investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.
• Explore real estate, commodities, infrastructure, and other alternative investments, including, as applicable, strategies, sub-categories, potential benefits and risks, fee structures, and due diligence.
• Explore potential benefits of alternative investments in the context of portfolio management.
• Discover, calculate, and interpret management and incentive fees and net-of-fees returns to hedge funds.
• Recognize and understand high level strategies for dealing with Alternative investment questions on the CFA.

Last updated/reviewed: March 24, 2024