OUR ACADEMIC DEPARTEMENTS

Lesson details

ALTERNATIVE INVESTMENTS
2023-2024	EnIESEG School of Management ( IÉSEG )
Class code :	2324-IÉSEG-MFI1S2-FIN-MFICI14UE	FINANCE

Level	Year	Period	Language of instruction
MSc in Finance	1	S2	EnEnglish

Academic responsibility	M.PARK
Lecturer(s)	M.PARK

IÉSEG > MSc in Finance > Semestre 2 > 2,00 ECTS

Prerequisites

Basic understanding of the traditional investment assets such as stocks and bonds.
Basic understanding of economic theory concerning corporate governance structure (agency theory).

Learning outcomes

Develop a good understanding of alternative investment classes beyond the traditional investments. This includes investments in hedge fund, private equity, real estate and commodities. This course is designed for students interested in pursuing a career in financial industry or business consulting, or a career in corporations as financial experts.
Successfully collaborate within a intercultural team
Appraise the performance of a team
Be a reference point for expertise-related questions and ambiguities

Course description

Topic 1. Hedge Fund
Contents:
- Introduction of hedge fund
- Discussion of hedge fund strategies, performance, agency problem and regulation
Reading:
- Anson(2006) Ch 1-4, 8
- Cumming, Dai and Johan(2013) Ch 1-4, 7
- Stowell (2010) Ch 11-14
- Case Study 1

Topic 2. Private Equity
Contents:
- Private equity fundraising and agency problems
- Exit strategies
Reading:
- Cumming and Johan (2014) Ch 4, 5
Topic 2-1. Venture Capital Contents:
- Valuation of investments, performance and returns
- Exit Strategies
Reading:
- Anson (2006) Ch 16
Topic 2-2. LBO Contents:
- The process of LBO
- Agency issues
Reading:
- Stowell (2010) Ch 16, 17
Topic 3. Real Estate
Contents:
- Understanding REITS, mortgage backed securities, real estate investment trusts
Topic 4. Commodities investment Contents:
- Understanding commodities investments and other alternative investments
Reading:
- Anson (2006) Ch 12-14

Class type

Class structure

Type of course	Numbers of hours	Comments
Independent work
Research	3,00	A case study (Case2) will be distributed for students’ self-learning. A suggested written answer will be released at the end of the course.
Reference manual 's readings	16,00	Students are expected to spend 4 hours per day to cover the required readings.
Independent study
Estimated personal workload	15,00	Students should prepare for the exam in self-study.
Face to face
Interactive class	16,00	15 hours of lecture will cover the course contents. 1 hour at the end of second day will be spent to discuss a case study (Case1) distributed on the first day.
Total student workload	50,00

Teaching methods

Case study
E-learning
Interactive class

Assessment

Student performance will be assessed through one final written exam of 1.5 hours. Questions of qualitative and quantitative nature will be asked. All questions are open questions that require writing of brief explanations and/or short essays.