This detailed CFA® Level I (2025) Alternative Investments summary contains 187 pages of expertly prepared notes, tailored to meet the current CFA Institute curriculum standards. Written by a passed candidate, this guide is designed to help exam takers grasp high-yield topics efficiently and with conceptual clarity.
Alternative investments are becoming increasingly relevant in diversified portfolio construction. These notes provide a structured overview of the asset class, including institutional structures, risk factors, valuation methods, and return characteristics.
Key topics include:
- Alternative Investment Features, Methods and Structures:
Understand limited partnerships, fund of funds, and differences in liquidity, transparency, and regulation across asset types. - Performance and Return Calculations:
Learn unique methods to evaluate performance of non-traditional assets including internal rate of return (IRR), multiples, and public market equivalents. - Private Capital Investments (Equity and Debt):
Analyze venture capital, leveraged buyouts (LBOs), mezzanine financing, and distressed debt, along with exit strategies and valuation complexities. - Real Estate and Infrastructure:
Dive into direct vs. indirect real estate investments, REITs, core and opportunistic infrastructure investments, and appraisal-based return measures. - Natural Resources:
Covers investments in commodities, timberland, and farmland with insights into production exposure, spot vs. futures pricing, and inflation protection. - Hedge Funds:
Explore various strategies (long/short equity, global macro, event-driven), fee structures, leverage use, and due diligence essentials. - Digital Assets Introduction:
Gain foundational knowledge of cryptocurrencies, blockchain technology, tokenization, and risks associated with digital asset investing.
This guide simplifies key alternative asset concepts and emphasizes their role in portfolio diversification, risk mitigation, and return enhancement. Ideal for CFA candidates aiming to master both conceptual frameworks and formula-driven calculations relevant to Level I.
Use these notes as a trusted reference throughout your 2025 CFA exam preparation.
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