Alternative investments features and methods (for the CFA Level 1 exam)
Video Overview & Insights
Alternative investments features and methods (for the CFA Level 1 exam) defines alternative investments as an asset classes and exlores the basic characteristics of its primary sub-categories:
One more source of return on commodities is leasing.
- private capital, including private equity (PE), private debt and venture capital (VC),
- real estate,
I took CFA exam 4 times with self study and never passed. I hope the video can help me with the coming exam next year. 🥹✌🏻
- infrastructure,
- natural resources, including commodities,
hello sir i love your channel and you are helping me a lot in my cfa journey , I've been following your lectures but i cannot find just 1 topic in alternative investment which is waterfall models can you tell me in which video you have covered them ?
- hedge funds, and
- collectibles.
We also discuss the methods by which market participants add alternative investments to their portfolios:
- fund investment,
I cannot study via cfa curriculum, but i hope watching and learning from videos will do/make same impact i.e. level of understanding for same L1 and L2
- co-investment, and
- direct investment.
Timestamps
00:05 - Introduction to alternative investments and their defining characteristics.
03:13 - Alternative investments have unique characteristics affecting their liquidity and investment horizon.
08:57 - Private equity offers deeper management engagement for investors.
11:49 - Exploring private and public company transformations in alternative investments.
17:35 - Debt investing includes real estate and infrastructure for generating returns.
20:37 - Infrastructure investments involve public-private partnerships for financing and maintenance.
26:31 - Commodities serve as a key alternative investment protecting against inflation.
29:16 - Natural resources and hedge funds provide diversification in alternative investments.
34:27 - Investors utilize three key methods for alternative investments.
37:04 - Investors in alternative funds typically have limited influence over investment decisions.
42:10 - Alternative investments feature complex fees and limited access for investors.
45:00 - Co-investment enables investors to gain direct experience alongside funds.
50:31 - Direct investment in commercial properties is for experienced and wealthy investors.
53:07 - Direct investments require proper oversight and resources.
This video explores topics covered in Lessons 2 and 3, Learning module 1 of the Alternative Investments section of the 2026 CFA Level 1 Curriculum.
LOS:
Sir , what can be the order of study for CFA L1 ?
- describe features and categories of alternative investments
- compare direct investment, co-investment, and fund investment methods for alternative investments
As REITs are publicly traded, they shouldn't be coming under a private capital group right?
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Hi Sir, may I check where to find :Alternative Investment Returns" topic?
More User Perspectives
Can we get the notes for this subject?, Between I'm your paid member!
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@arjunsuresh4286Sir, I feel truly fortunate to have found your channel and become a member. Your explanations make the material easy to understand, and all the details align perfectly with the CFA curriculum. Thank you so much for creating this channel and offering such an affordable membership!
@MahrukhMughal-t3cAnother banging video 😎
@shaneabela3773I am average student if i start today how long will it take me to complete CFA and also how much money will it take?
@Rishi2015Another amazing content! Quick question, (1) what is the logic of UITF and ETFs not being part of alternative investment? How is it different with funds?(2) is fund manager same with portfolio manager vs brokers? (3) who manages each alternative investment? Is it different per each type of alternative investment ? I.e. if fund = fund manger, hedge fund = ?, real estate =?, infrastructure =?, private capital =?, commodities=?, natural resources=? Or an investor can directly manage it? (4) will you consider copy trading as an alternative investment? Thanks
@Iamlearning-o7yhow could i become member?
@NghiDong-ff8jeIncredible explanation, Ser. Thank you for this invaluable resource.
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