During the last decade, institutional investors have dramatically increased exposure to alternative asset classes, such as hedge funds, commodities and private equity.
This course will focus on the theory and practice of investing in alternative asset classes, including hedge funds, commodities (both managed futures and timber) and private equity (both venture capital and leveraged buyouts). As part of the hedge fund discussion, we will analyze in detail the following hedge fund strategies: long-short equity, merger arbitrage, equity market neutral, fixed income arbitrage, global macro and fund of funds.
In order to gain hands-on experience in hedge fund and commodity investing, students will construct and manage a fund of several of these alternative investment strategies using a simulation in real-time markets. Also, in order to further enhance the understanding of investment processes and tools used in the alternative investment arena, the coursework incorporates business cases involving hedge funds and private equity firms.
Michael Perelstein was a Columbia Business School faculty member from 2008 to 2016.