Improving private portfolios with alternative investments : how small investors can benefit from alternative investments / Torben Lauer.

Format:

Book

Author/Creator:

Lauer, Torben, author.

Series:

Reihe Alternative Investments ; Band 10

Language:

English

Subjects (All):

Investments.

Portfolio management.

Private equity.

Physical Description:

1 online resource (56 pages).

Edition:

1st ed.

Place of Publication:

Hamburg : Diplomica Verlag, 2018.

Summary:

From a theoretical perspective, alternative investments should be used within every portfolio to increase diversification. The theory goes for institutional and for private investors. For small investors, however, some alternative assets are not accessible. The goal of this study is to evaluate how alternative investments have performed compared to common assets. Some of the available alternative investment possibilities are already in use for many private investors. It is positive that investors buy assets that are not listed on their brokerage account. However, to have efficient portfolios, the asset allocation can be further optimized with respect to Markowitz's modern portfolio theory. The market for alternative investments is small and lacks liquidity. Therefore, the author evaluates their usefulness in terms of accessibility and availability. The findings of this study propose that alternative investments can help to increase portfolio diversification. A portfolio comprised only of alternative investments cannot outperform a traditional one. A combination of alternative assets and traditional assets, however, can outperform the broadly used combinations of equity and debt.

Contents:

Improving Private Portfolios with Alternative Investments. How Small Investors can benefit from Alternative Investments

Vorwort

Table of Contents

List of Tables

List of Charts

1 Introduction

2 Existing Literature

3 Alternative Investments

3.1 Asset Classes

3.1.1 Hedge funds

3.1.2 Real Estate

3.1.3 Infrastructure Investments

3.1.4 Private Equity &amp

Venture Capital

3.1.5 Algorithmic and High-frequency Trading

3.1.6 Commodity Investments

3.1.7 Art

3.1.8 Vintage Goods

4 The Market of Alternative Investments

4.1 Market Characteristics and Accessibility

4.1.1 Alternative Investment Benchmarks

4.1.2 Correlation of Asset Classes

4.2 Assessing Alternative Asset Classes

4.3 Investible Alternative Investment Assets

5 Performance Comparison to Common Assets

5.1 Benchmarks of Common Assets

5.2 Asset Allocation and Benchmark Portfolio

5.3 Portfolio Analysis

6 Portfolio Theory with Alternative Investmens

6.1 Alternative Mean-Variance Portfolio

6.2 Mixed Mean-Variance Portfolio

7 Summary

7.1 Findings

7.1.1 CAPM - Explaining Returns of AIs and why it is Hard to Beat theMarket

7.1.2 Experience With the Research

7.2 Outlook

Reference List

Appendix.

Notes:

Description based on print version record.

ISBN:

3-96146-080-9