ALTERNATIVE SECURITIES

FIN5ALS

2018

Credit points: 15

Subject outline

In this subject, you will develop a working knowledge of the characteristics of alternative securities including hedge funds, venture capital and private equity. The subject provides an in-depth study on the institutional features of private equity and hedge funds. The main investment strategies of venture capital and hedge fund will be introduced.  The subject also covers the evaluation of risks and returns of private equity and hedge funds and discuss the complicated measurement issues that are specific to the alternative assets. You will develop practical skills and apply their analytical skills to the valuation of private firms, firms with financial distress and leverage buyout.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorMichael Li

Available to Study Abroad StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsYes

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisites FIN5DER, FIN5EQS

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsHandbook of alternative assets. (2nd ed.)PrescribedAnson, M. J. P.JOHN WILEY & SONS: NEW JERSEY, 2006
ReadingsInvestment strategies of hedge fundsPrescribedFilippo, StefaniniJOHN WILEY & SONS, 2006

Graduate capabilities & intended learning outcomes

01. Understand and explain the key differences between traditional and alternative assets investment. Analyse industry and economic conditions that contribute to the development of alternative asset classes

Activities:
tutorials, assignments, lectures, final examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

02. Review various methodologies for company evaluation. Identify the most appropriate firm valuation methodology that suits venture capital and private equity

Activities:
tutorials, assignments, financial project, lectures, final examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

03. Understand the different legal and regulation treatment of hedge funds compare to other institutional investment vehicles

Activities:
lectures, tutorials, final examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

04. Evaluate and compare the performance and risks of hedge funds and private equity

Activities:
tutorials, financial project, final examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)
Literacies and Communication Skills (Quantitative Literacy,Cultural Literacy)

05. Develop the skills required to work effectively as a member of a team and apply teamwork skills to collaborative learning tasks

Activities:
financial project, tutorial
Related graduate capabilities and elements:
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Adaptability Skills)

Subject options

Select to view your study options…

Start date between: and    Key dates

Melbourne, 2018, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Seminar Week: 31 - 43
One 2.0 hours seminar other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Tutorial Week: 32 - 43
Two 1.0 hours tutorial other recurrence on weekdays during the day from week 32 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Individual assignment (1500 words)20 01, 02
Financial group project 3000 words (1000-1500 words per student)20 01, 02, 03, 04, 05
Final examination (3 Hours)Hurdle requirement: Students must achieve at least 50% in the final examination as well as a minimum of 50% in the sum of the marks for all assessment tasks to pass the subject.60 01, 02, 03, 04