Equity Strategies
Long/Short Equity Long/short (L/S) equity managers buy equities of companies they expect will rise in value and sell short equities …
alternative investments
Overview of Hedge Fund Strategies
Characteristics of Hedge Funds: Legal/Regulatory Overview: Lower regulatory and legal constraints. Flexible Mandates—Few Investment Constraints: Given the relatively low legal and regulatory …
Module 42.5 LOS 42.m: Financial ratios used to analyze private real estate investments
Lenders often use the debt service coverage ratio (DSCR) and the loan-to-value (LTV) ratio to determine the maximum loan amount on a specific property. …
Module 42.4 LOS 42.i: Valuing Real Estate Using the Cost and Sales Comparison Approach
Cost Comparison Approach Estimate the market value of the land. The value of the land is estimated separately, often using the …
Module 42.2 LOS 42.g: Direct Capitalization Approach
In the direct capitalization approach to property valuation, we discount or “capitalize” first year NOI by the capitalization rate. NOI …
Module 45.1 LOS 45.a: Characteristics of Commodity Sectors
Well known commodity sectors are energy, industrial metals, grains, livestock, precious metals and softs. They are all driven by supply …
Module 45.1 LOS 45.i: Commodity swaps characteristics
Swaps are off market instruments created by dealers which allow purchasers to increase or decrease their exposure to commodity risk. …
Module 45.2 LOS 45.h: Contrast roll return in markets in contango and markets in backwardation
To hold the value of a long position constant, an investor must buy more contracts if the new longer-dated futures …
Module 44.1 LOS 44.a: How Private Equity Creates Value
PE firms can increase value through their ability to re-engineer a portfolio company to operate more efficiently by leveraging their …
Module 44.1 LOS 44.b: Private Equity Control Mechanisms
Control mechanisms are terms agreed upon between the PE firm and managers of portfolio companies for a PE fund which …