RP-alternative investment (research and analyze)

Econ 415 Portfolio Theory Assignment 4

Alternative Investments

Choose 2 “Alts,” or Alternative Investments, to research and analyze.

Describe their investment objectives, strategy, and recent (3 or 5 year) performance.

Review and interpret at least 2 – 3 risk adjusted return measures, or ratios, that we’ve covered in class (Volatility, Sharpe Ratio, Treynor Ratio, Alpha, Beta, etc..) applied to your Alts.

Assess how you feel adding a 5 – 10% allocation of these Alts can improve a traditional stock and bonds portfolio. Finally, compare and contrast the 2 Alts in terms of performance, risk and ability to diversify an investment portfolio. Focus also on why you believe these Alternative Investments are highly un-correlated to an existing stock and bond portfolio.

Parameters:

· 2 – 3 double-spaced pages, MLA format

· Include a mix of theory and practical, actual examples of your Alternatives.

· Choose either from this initial list of Alts, or others you see in your research: - Long / Short (hedge) fund - Private Equity funds - Venture Capital funds - Commodities – Oil, Gold, agriculture futures (these can count for 2 Alts, ex: Oil and Gold). - Covered Call fund - Cryptocurrrency fund - Annuities - Foreign currency fund - Convertible arbitrage fund - Capital events driven fund - Catastrophe (“Cat”) bonds