Handbook of Alternative Assets

MARK J. P. ANSON, PHD, CFA, CAIA, CPA, JD, is CEO of Hermes Pension Management Ltd. in London, which has over £65 billion in assets under management, and is the former CIO of CalPERS, where he oversaw the growth of assets from $127 billion to $210 billion. Anson has more than twenty years of investment experience in fixed income, equities, private equity, real estate, commodities, hedge funds, corporate governance, and credit derivatives.

• Preface ixAbout the Author xiPART ONE Overview of Alternative Assets 1CHAPTER 1 What Is an Alternative Asset Class? 3CHAPTER 2 Why Alternative Assets Are Important: Beta Drivers and Alpha Drivers 15PART TWO Hedge Funds 29CHAPTER 3 Introduction to Hedge Funds 31CHAPTER 4 Establishing a Hedge Fund Investment Program 71CHAPTER 5 Due Diligence for Hedge Fund Managers 97CHAPTER 6 Risk Management Part I: Hedge Fund Return Distributions 135CHAPTER 7 Risk Management Part II: Additional Hedge Fund Risks 169CHAPTER 8 Regulation of Hedge Funds 203CHAPTER 9 Hedge Fund Benchmarks and Asset Allocation 229CHAPTER 10 Hedge Fund Incentive Fees and the “Free Option” 251CHAPTER 11 Top Ten Hedge Fund Quotes 265PART THREE Commodities and Managed Futures 275CHAPTER 12 Introduction to Commodities 277CHAPTER 13 Investing in Commodity Futures 305CHAPTER 14 Commodity Futures in a Portfolio Context 333CHAPTER 15 Managed Futures 353PART FOUR Private Equity 377CHAPTER 16 Introduction to Venture Capital 379CHAPTER 17 Introduction to Leveraged Buyouts 419CHAPTER 18 Debt as Private Equity Part I: Mezzanine Debt 455CHAPTER 19 Debt as Private Equity Part II: Distressed Debt 477CHAPTER 20 The Economics of Private Equity 501CHAPTER 21 Performance Measurement for Private Equity 523CHAPTER 22 Trends in Private Equity 553PART FIVE Credit Derivatives 577CHAPTER 23 Introduction to Credit Derivatives 579CHAPTER 24 Collateralized Debt Obligations 609CHAPTER 25 Collateralized Fund Obligations: Intersection of Credit Derivative Market and Hedge Fund World 653PART SIX Corporate Governance 667CHAPTER 26 Corporate Governance as an Alternative Investment Strategy 669Index 695