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Performance Measurement for Alternative Investments
Discipline: Investing
No of pages: 378
First published:
ISBN: 9781782722267
Despite enormous growth in alternative investment, performance measurement practices in this area are rough around the edges. Performance analysts tasked with measuring and reporting the returns of alternative assets face issues regarding which return method to use, leverage that creates negative denominators in the return calculation, a host of valuation concerns, and challenges associated with benchmarking these unique strategies.
Contents
Introduction to Alternative Investment Strategies
The Mathematics of Return Calculation
Leverage and Return
Long–Short Return Calculation
Calculation of Return for Swaps
Calculation of Return for Forwards, Futures and Options
Calculation of Return for Currency
SEC Regulatory Considerations
NFA and CFTC Regulatory Considerations
Hedge Funds
Private Equity
Real Estate
Treatment of Fees and Expenses
Benchmarking Alternative Investment Strategies
The Importance of Valuation Policy