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3 articles · 44 min
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Alternative Investments: Asset Classes, Categories, and Portfolio Role
A comprehensive guide to alternative investments — what they are, the five major asset categories, the illiquidity premium, and how institutional investors use…
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Hedge Funds: Strategies, Fees, and Performance
Hedge funds are privately pooled investment vehicles that use strategies like short selling, leverage, and derivatives to pursue absolute returns.
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Private Equity & Venture Capital: How PE and VC Work
Private equity and venture capital channel capital into companies outside the public markets. This guide explains the PE fund lifecycle, LBO mechanics, venture…
Alternative Investment Strategies
11 parts · 2½ hours
Hedge Fund Due Diligence: Evaluating Managers and Investment Programs
Hedge fund due diligence covers the IDD and ODD framework institutional allocators use to evaluate managers — including DDQ structure, regulatory checks, red…
Hedge Fund Risk Management: Leverage, Liquidity, and Tail Risk
A comprehensive guide to hedge fund risk management covering leverage types, liquidity risk mechanics (gates, side pockets, redemption mismatches), drawdown…
Hedge Fund Benchmarks and Indices: HFRI, Survivorship Bias, and Index Construction
A comprehensive guide to hedge fund benchmarks: the major index families (HFRI, CSFB/Tremont, MSCI), the four structural data biases that inflate reported…
Hedge Fund Fee Structures: 2-and-20, High-Water Marks, and Hurdle Rates
A detailed guide to hedge fund fee structures covering 2-and-20 mechanics, high-water mark calculations, hard vs soft hurdle rates, clawback provisions…
Commodities as Portfolio Diversifiers: Inflation Hedge and Correlation Benefits
Learn why commodities improve portfolio diversification through inflation hedging, negative equity correlation, and roll yield — with evidence-based allocation…
Managed Futures and CTAs: Trading Strategies, Returns, and Crisis Alpha
Learn what managed futures are, how Commodity Trading Advisors use trend-following strategies, what crisis alpha means, and whether managed futures belong…
Mezzanine Financing: Structure, Returns, and Role in Private Equity
A comprehensive guide to mezzanine financing — subordinated debt structure, PIK interest, equity kickers, LBO capital stack positioning, return expectations…
Distressed Debt Investing: Strategies, Fulcrum Security, and Chapter 11 Returns
Learn how distressed debt investing works — from identifying the fulcrum security and navigating Chapter 11 bankruptcy to understanding active vs passive…
Private Equity Performance Metrics: PME, Benchmarking, and Return Pitfalls
Learn how to evaluate private equity fund performance using PME (Kaplan-Schoar, Long-Nickels, Direct Alpha), vintage year benchmarking, and how to identify…
Collateralized Fund Obligations (CFOs): Structure, Tranches, and Hedge Fund Securitization
A collateralized fund obligation (CFO) is a structured bond backed by hedge fund interests via a special purpose vehicle and fund of funds.
Shareholder Activism: Strategies, Proxy Fights, and Investment Returns
Learn how shareholder activism works as an alternative investment strategy — activist strategies, Schedule 13D filings, proxy fights, universal proxy rules…
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