Handbook of Alternative Assets

Since the first edition of the Handbook of Alternative Assets was published, significant events-from the popping of the technology bubble and massive accounting scandals to recessions and bear markets-have shifted the financial landscape. These changes have provided author Mark J. P. Anson with an excellent opportunity to examine alternative assets during a different part of the economic cycle than previously observed in the first edition. Fully revised and updated to reflect today's financial realities, the Handbook of Alternative Assets, Second Edition covers the five major classes of alternative assets-hedge funds, commodity and managed futures, private equity, credit derivatives, and corporate governance-and outlines the strategies you can use to efficiently incorporate these assets into any portfolio. Throughout the book, new chapters have been added, different data sources accessed, and new conclusions reached. Designed as both an introduction to the world of alternative assets and as a reference for the active investor, the Handbook of Alternative Assets, Second Edition will help you match alternative assets with your various investment goals.

Since the first edition of the Handbook of Alternative Assets waspublished, significant events-from the popping of the technologybubble and massive accounting scandals to recessions and bearmarkets-have shifted the financial landscape. These changes haveprovided author Mark J. P. Anson with an excellent opportunity toexamine alternative assets during a different part of the economiccycle than previously observed in the first edition.Fully revised and updated to reflect today's financial realitiesthe Handbook of Alternative Assets, Second Edition covers the fivemajor classes of alternative assets-hedge funds, commodity andmanaged futures, private equity, credit derivatives, and corporategovernance-and outlines the strategies you can use to efficientlyincorporate these assets into any portfolio. Throughout the booknew chapters have been added, different data sources accessed, andnew conclusions reached.Designed as both an introduction to the world of alternative assetsand as a reference for the active investor, the Handbook ofAlternative Assets, Second Edition will help you match alternativeassets with your various investment goals.

Preface ixAbout the Author xiPART ONE Overview of Alternative Assets 1CHAPTER 1 What Is an Alternative Asset Class? 3CHAPTER 2 Why Alternative Assets Are Important: Beta Drivers and Alpha Drivers 15PART TWO Hedge Funds 29CHAPTER 3 Introduction to Hedge Funds 31CHAPTER 4 Establishing a Hedge Fund Investment Program 71CHAPTER 5 Due Diligence for Hedge Fund Managers 97CHAPTER 6 Risk Management Part I: Hedge Fund Return Distributions 135CHAPTER 7 Risk Management Part II: Additional Hedge Fund Risks 169CHAPTER 8 Regulation of Hedge Funds 203CHAPTER 9 Hedge Fund Benchmarks and Asset Allocation 229CHAPTER 10 Hedge Fund Incentive Fees and the "Free Option" 251CHAPTER 11 Top Ten Hedge Fund Quotes 265PART THREE Commodities and Managed Futures 275CHAPTER 12 Introduction to Commodities 277CHAPTER 13 Investing in Commodity Futures 305CHAPTER 14 Commodity Futures in a Portfolio Context 333CHAPTER 15 Managed Futures 353PART FOUR Private Equity 377CHAPTER 16 Introduction to Venture Capital 379CHAPTER 17 Introduction to Leveraged Buyouts 419CHAPTER 18 Debt as Private Equity Part I: Mezzanine Debt 455CHAPTER 19 Debt as Private Equity Part II: Distressed Debt 477CHAPTER 20 The Economics of Private Equity 501CHAPTER 21 Performance Measurement for Private Equity 523CHAPTER 22 Trends in Private Equity 553PART FIVE Credit Derivatives 577CHAPTER 23 Introduction to Credit Derivatives 579CHAPTER 24 Collateralized Debt Obligations 609CHAPTER 25 Collateralized Fund Obligations: Intersection of Credit Derivative Market and Hedge Fund World 653PART SIX Corporate Governance 667CHAPTER 26 Corporate Governance as an Alternative Investment Strategy 669Index 695