Base Knowledge
Teaching Methodologies
The course adopts a practical approach, with interactive theoretical sessions and case studies to apply concepts in context. Portfolio
simulations, data analysis, and practical exercises will be used to familiarise students with the dynamics of return and risk in alternative
investments.
Students will work on group projects, including the analysis of a real case related to alternative investments and portfolios using AI,
promoting collaborative work and critical analysis.
In addition, discussions on current topics, with contributions from professionals in the alternative investment sector, such as ESG
investments and compliance in digital assets, will enhance strategic thinking.
The use of financial software will allow for practical and detailed analysis, ensuring students are well-prepared for the job market.
Learning Results
The “Alternative Investments” course aims to equip students with in-depth knowledge of non-traditional assets, such as hedge funds, private
equity, private debt, real estate, commodities, natural resources, digital assets, infrastructure, and other collectible and intangible assets.
The course develops skills for analysing the role of these investments in the financial ecosystem and in portfolio diversification and
management, understanding specific types and evaluation methods.
Emphasis is placed on building efficient portfolios that integrate alternative investments, focusing on risk and performance measures,
allocation, and their impact on global portfolios.
Combining theory and practice with a focus on financial, real, and digital assets, students gain analytical and practical skills, grounded in
responsible, sustainable, and ethical practices, including legal and compliance frameworks in alternative investments.
Program
1. Alternative Investments: Definition, types, characteristics, compensation structures and role in diversification, including direct
investments, co-investments and funds.
2. Hedge Funds: Arbitrage, leverage and long/short strategies.
3. Private Equity and Venture Capital: Structure, methods and the role of private markets.
4. Private Debt, Crowdfunding and P2P Lending: Characteristics, capital structure and risk and return.
5. Real estate: Assessment and impact on the portfolio. Use of AI for market analysis.
6. Commodities and Natural Resources: Diversification, oil, metals, agricultural and forestry lands.
7. Infrastructure: Investment in infrastructure and public-private partnerships.
8. Digital Assets: Cryptocurrencies, NFTs and use of blockchain in the context of risk.
9. Other Assets: Art and other collectibles and intangibles.
Curricular Unit Teachers
Professor a definir - ISCACGrading Methods
Assessment through Final Exam and Case Study
The final exam will consist of an individual written test, accounting for 50% of the final grade (10 points).
Preparation and Presentation of a Case Study or Scientific Paper carried out in a group of at least 2 members, accounting for 50% of the final grade (10 points):
• The topic of the work is chosen by the student in collaboration with the course instructor.
• The oral presentation, held during the semester on dates set by the instructor, is worth 2 points of the final work grade.
• The written paper, with a maximum score of 8 points, is limited to 20 pages, in 12-point Times New Roman font.
Note: The assignments are completed in groups, with composition and guidance provided by the instructor, but the final grade for the work is awarded individually.
The student passes the course if they achieve a cumulative score of 10 points across all assessment components.
Internship(s)
NAO
Bibliography
Chamber, D. R., Anson, M. J. P., & Black, K. H. (2020). Alternative Investments: CAIA Level I, Edition 4. Wiley.
Baker, H. K., & Filbeck, G. (2013). Alternative Investments: Instruments, Performance, Benchmarks, and Strategies. Wiley.
Bodie, Z., Kane, A., & Marcus, A. J. (2023). Investments. 13ª ed. McGraw-Hill.
Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset. 3rd edition. Wiley Finance
Brown, S., & Goetzmann, W. (2003). The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to Be True. John Wiley & Sons.
Narayanan, A. et al. (2016). Bitcoin and Cryptocurrency Technologies. Princeton University Press.
Swenson, D. F. (2009). Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment, Fully Revised and Updated. Free Press.