By Jeff Benjamin 

DETROIT - In an industry loaded with all manner of professional designations and credentials, the Chartered Alternative Investment Analyst Association appears to have found its niche.

The fact that the number of people sitting for the two-part CAIA exams has doubled annually since it was established three years ago illustrates both the appeal of alternative-investment strategies and the thirst for knowledge in this area. In 2003, there were 233 applicants, while 1,535 sat for the exams in 2005.

"I believe it's the only educational process and certification for the alternatives industry," said Peter Mauthe, chief operating officer of Rhoads Lucca Capital Management Inc. in Dallas.

"I think it's meaningful to illustrate to clients that we're not only in the alternatives space, but we've also shown a desire to learn more about it," he said.

"In this industry, a lot of the research gets done for marketing purposes, and a lot of it is just bad," said Jane Buchan, managing director at Pacific Alternative Asset Management Co. LLC, an Irvine, Calif.-based fund-of-hedge-funds firm with $7.5 billion under management.

" It helps you to better understand alternatives," Ms. Buchan said. "And it's very strongly geared toward people who have to invest across multiple strategies or sectors."

The CAIA association, which has 575 members, was developed cooperatively by the Alternative Investment Management Association Ltd. in London and the Center for International Securities and Derivatives Market in Amherst.

Similar to the CFA, which has nearly 69,000 members in 120 countries, the CAIA has developed a global following, with exam candidates representing 50 countries. The CAIA program concentrates on five categories of alternative investing: hedge funds, private equity, real estate, commodities and managed futures.

"This designation formalizes my knowledge of alternatives and broadens my focus," said Bill Kay, a vice president at Morgan Stanley Alternative Investment Partners in West Conshohocken, Pa.

"I think the designation gave me a little more push in the marketplace," said Bill Gruzynski, managing director at Emerald Strategies LLC, a Chicago advisory firm with $13 million under advisement. "I've always had a good sense of alternative strategies and a pretty good overview understanding, but the CAIA helped me to develop better insight."

"Prior to the CAIA, there was no real means for people to get an education in alternatives," said Craig Asche, executive director of the association. "The university programs don't offer an education on alternatives, and most of the financial services firms are not in any kind of position to develop a proper program."