ALTERNATIVE SECURITIES
FIN5ALS
2019
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 funds will be introduced. The subject also covers the evaluation of risks and returns of private equity and hedge funds and discusses 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.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Michael Li
Available to Study Abroad Students: Yes
Subject year level: Year Level 5 - Masters
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: N/A
Co-requisites: N/A
Incompatible subjects: N/A
Equivalent subjects: N/A
Special conditions: N/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Alternative Investments: CAIA Level I, 3rd Edition | Prescribed | Donald R. Chambers, Mark J. P. Anson, Keith H. Black, Hossein Kazemi, CAIA Association, 2015 | JOHN WILEY & SONS |
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)
Melbourne, 2019, Semester 2, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Michael Li
Class requirements
LectureWeek: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.
TutorialWeek: 32 - 43
One 1.0 hours tutorial per week on weekdays during the day from week 32 to week 43 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| Individual assignment (800 words) | 15 | 01, 02 | |
| Financial group project 4500 words (1000-1500 words per student) | 25 | 01, 02, 03, 04, 05 | |
| Final examination (3 Hours) (equivalent to 3000 words) | 60 | 01, 02, 03, 04 |