ALTERNATIVE SECURITIES

FIN5ALS

2020

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.

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-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsAlternative Investments: CAIA Level I, 3rd EditionPrescribedDonald R. Chambers, Mark J. P. Anson, Keith H. Black, Hossein Kazemi, CAIA Association, 2015JOHN WILEY & SONS

Graduate capabilities & intended learning outcomes

01. Explain the key differences between traditional and alternative assets investment.

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. 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)

03. Review firm evaluation methodologies and identify the most appropriate methodology for valuing venture capital and private equity

Activities:
lectures, tutorials, final examination, assignment, financial project
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)

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

Activities:
tutorials, 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)

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

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

Subject options

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Start date between: and    Key dates

Melbourne, 2020, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorMichael Li

Class requirements

Lecture Week: 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.

Tutorial Week: 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 elementComments% ILO*
Individual assignmentEquivalent to 2000 words30 01, 02
One hour formative examinationEquivalent to 1000 words10 01, 02, 03, 04, 05
Two hour final examinationEquivalent to 2000 words50 01, 02, 03, 04
Online and/or in-class assessment tasksEquivalent to 500 words10 01, 03