>Donald R. Chambers
Alternative Investments
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Alternative Investments
CAIA Level I
Third Edition
Donald R. Chambers
Mark J.P. Anson
Keith H. Black
Hossein Kazemi
Cover image: © Getty Images
Cover design: Zoe Design Works
Copyright © 2009, 2012, 2015 by The CAIA Association. All rights reserved.
The second edition of this book was published in 2012 under the title CAIA Level I: An Introduction to Core Topics in Alternative Investments.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Chambers, Donald R.
[CAIA level I]
Alternative investments: CAIA level I / Donald R. Chambers, Mark J.P. Anson with Keith H. Black, Hossein Kazemi. – Third Edition.
pages cm. – (Wiley finance)
Revised edition of CAIA level I, 2012.
Includes bibliographical references and index.
ISBN 978-1-119-00336-6 (hardback); ISBN 978-1-119-00338-0 (ePDF); ISBN 978-1-119-00337-3 (ePub) 1. Investments. 2. Securities. 3. Portfolio management. I. Anson, Mark Jonathan Paul. II. Black, Keith H. III. Anson, Mark Jonathan Paul. CAIA level I. IV. CAIA Association. V.Title. VI. Title: CAIA level one.
HG4521.C45123 2015
332.63-dc23
2015028407
Preface
Alternative Investments: CAIA Level I is designed as the primary reading resource for the Level I exam of the Chartered Alternative Investment Analyst (CAIA) Association's Charter program, as well as a textbook for university courses and a resource for alternative investment professionals. This book is a thrice-revised edition of Mark Anson's Handbook of Alternative Assets and represents another milestone in our efforts to continuously improve and update the CAIA curriculum. To ensure that the material best reflects up-to-date practices in the area of alternative investments, the CAIA Association invited a group of leading industry professionals to contribute to the production of the series, covering core areas of alternative investments: real assets, hedge funds, private equity, and structured products.
Foundation
Since its inception in 2002, the CAIA Association has striven to be the leader in alternative investment education worldwide, and to be the catalyst for the best education in the field wherever it lies. The CAIA program was established with the help of a core group of faculty and industry experts who were associated with the University of Massachusetts and the Alternative Investment Management Association (AIMA). From the beginning, the CAIA Association recognized that a meaningful portion of its curriculum must be devoted to codes of conduct and ethical behavior in the investment profession. To this end, with the permission and cooperation of the CFA Institute, we have incorporated its Code of Ethics and its Standards of Practice Handbook into our curriculum. Further, we have leveraged the experience and contributions of our members and other alternative investment professionals who serve on our board and committees to create and update the CAIA Association program's curriculum and its associated readings.
The quality, rigor, and relevance of our curriculum readings derive from the ideals upon which the CAIA Association was based. The CAIA program offered its first Level I examination in February 2003. Our first class consisted of 43 dedicated investment professionals who passed the Level I and Level II exams and met the other requirements of membership. Many of these founding members were instrumental in establishing the CAIA designation as the global mark of excellence in alternative investment education. Through their support and with the help of the founding cosponsors – the AIMA and the Center for International Securities and Derivatives Markets (CISDM) – the CAIA Association is now firmly established as the most comprehensive and credible
