In Brief
The 2nd Edition of the CAIA Level I Book: Studying Alternatives Has Never Been Easier
By Keith Black, Ph.D., CAIA, CFA, Associate Director of Curriculum
The readings for the CAIA Program, the basis for a comprehensive education in the growing sector of alternative investments, are evolving. Written under the direction of the CAIA Association and based on insights from practicing professionals and leading experts in the alternative investment field, CAIA Level I: An Introduction to Core Topics in Alternative Investments, Second Edition is the official study text for the CAIA Level I Program, which examines various alternative classes as well as the tools and techniques used to evaluate the risk-return attributes of each one. Designed to provide real-world relevance to alternative investment professionals, the book focuses on issues facing today's specialist and serves as a solid resource for information on the structural and returns characteristics of various strategies within each alternative asset class, methods of analysis, and risk- and portfolio-management concepts central to alternative investments.
CAIA Association staff experts have made many important updates to the text to address cutting-edge developments in the world of finance. Building on the 2009 first edition, the second edition has been substantially revised to prepare professionals to succeed in today's dynamic alternative investments industry.
One of the most important new features is that candidates of all skill levels will find the textbook easier to read and understand. For example, the structure, valuation processes, as well as the risk and return of alternative investments are carefully defined and contrasted with traditional investments. Another way in which the readings will be easier to understand is that each keyword is defined the first time it is mentioned to assist in students' mastery of the professional vocabulary and their corresponding concepts. The topics have been reorganized to sharpen the focus and rhythm of study. Candidates will also find they must memorize fewer complex formulas, though the authors have expanded their use of basic, algebraic math in the course of teaching concepts.
Another important new feature is that the authors used a uniform method of evaluating all investment types. This method relies less on historical risk and return data and more on the economic reasoning behind that historical performance. This greater reliance on investment structures and the underlying factor risks of alternative investments facilitates a cleaner comparison across asset types and allows for a clearer understanding of the characteristics of each investment. This helps to build essential skills for investors considering the inclusion of alternative investments in their asset allocation.
Finally, CAIA Level I: An Introduction to Core Topics in Alternative Investments, Second Edition contains an increased level of detail devoted to certain investment types. The authors revised and expanded the content on commodities, private equity, and the categories of hedge fund styles. Furthermore, given their growing importance in the portfolios of institutional investors, real asset investments in land, timberland, farmland, intellectual property and infrastructure are covered in the Level I textbook for the first time.
All of these improvements ensure students of all backgrounds will receive the best and most up-to-date education in alternative investments.
CAIA News
Early Registration: Now Open And Including A $100 Discount
CAIA Canadidates can now secure an exam seat at their preferred date and time. In addition, those who register for the Level I exam for the first time save an additional $100 on registration fees. The opportunity to register early and receive the discount ends on May 14, when the regular registration period begins. Register now.
CAIA Foundation Scholarship Winners To Be Announced Soon
At 11:59pm on April 3, the window for applying for one of the ten 100 Women in Hedge Funds/CAIA Scholarships closed. The many applications are currently being evaluated and the winners will be announced in early May. The to-be-announced 100 Women in Hedge Funds/CAIA Scholars will receive their enrollment and registration fees waived (for both Level 1 and Level 2), the CAIA Knowledge Series textbooks, Kaplan Schweser CAIA Level I Premium Instruction Study Solution, and their first year CAIA Association Membership Fee waived.
AllAboutAlpha.com
U.S. Rejoins the Globe, Say Consultants
A new consultant survey forecasts that investors in the months to come will be looking for opportunities in hedge funds, funds of funds, and non-U.S. stocks, including equity in the emerging markets. The survey indicated, further, that there will be at least a short-term decline in demand for domestic equity and long-duration bonds.
The survey, a joint product of Casey Quirk and eVestment Alliance, is their sixth annual survey of U.S. investment consultants. This year's survey, conducted in December 2011 and January 2012, took in 30 respondents, who together represent $9.7 trillion in U.S. investors' assets under advisement.
A Paradox: Avoid Correlation by Following the Trends
A common Wall Street adage runs, "the trend is your friend." Skeptics sometimes add to that the words, "…until it isn't." Commonfund has issued a new white paper that illuminates both sentiments, in the course of contending that futures funds managed by Commodity Trading Advisors (CTAs) can play a valuable part within institutional policy portfolios.
In particular, the authors, from Commonfund's Hedge Fund Strategies Group, seek to defend managed futures against the charge that they are invidiously opaque, a "black box." CTAs got their start as vehicles for following trends ("taking positions and letting profits run while cutting losses short" as the white paper puts it) and this still remains their most common model type. This subset of CTAs in particular, then, is much more transparent in their operations then its "discretionary, thematic counterparts." CTAs are data driven, and the data by which they are driven is available to the rest of the world.
Candidate News
- Level I Exam Session: September 17 – September 28, 2012.
- Level II Exam Session: September 10 – September 21, 2012.
- Registration for the September 2012 examinations opens April 2, 2012.
- Early registration ends May 14, 2012.
- Exam registration closes July 31, 2012.
March 2012 Exam Results Release Information
Level I: As of April 9th, candidates who completed the Level I examination can log in to the website and receive general exam results.
Level II: Candidates who completed the Level II examination can log in and receive their general exam results beginning April 23rd.
For complete grade release details, please visit Exam Results. For more information about the grading process, please review the Grading FAQs.
Chapter Events
CAIA London Networking Event and Wine Tasting
April 24, Laithwates Vinopoli, London
CAIA Boston and Boston Alternative Investments Networking Group joint Educational Event
May 2, Smith & Wollensky
"Pulling the Rip Cord on Your Parachute: Career Management Symposium in Alternative Investments"
Industry Events
AIFM Directive Level 2 Implementation Measures
April 24 - 25, 2012
CAIA members receive a 10% discount.
Bloomberg Latin America Investing Conference
April 26, 2012
CAIA members receive a 50% discount.
Bloomberg Washington Summit
May 1, 2012
CAIA members receive a 50% discount.
Strategies for Investing in Alternatives UCITS
May 2 - 3, 2012
CAIA members receive a 20% discount.
3rd Annual World Series of ETFs & Investment Management
May 7, 2012
CAIA members receive a 20% discount.
Bloomberg Canada Economic Summit
May 8, 2012
CAIA members receive a 50% discount.
Learn about more upcoming events.
Smart Moves
Christopher Schelling, CAIA, is a 2012 Rising Star of Public Funds recipient. When he joined the $14 billion Kentucky Retirement Systems in the newly created role of Director of Absolute and Real Return Strategies, he wrote, "The CAIA designation was a critical factor in opening up this opportunity for me, not only due to the competencies achieved by successfully completing the program but also through professional contacts made via my membership in the CAIA organization. I have been advocating to colleagues, both past and current, to pursue the CAIA designation if they are at all interested in a career in the alternatives track. I'm happy to say I have already made more than a few converts!"
With over ten years of investment experience, Chris oversees all aspects of the externally managed cash-plus and inflation-hedging mandates at the Kentucky Retirement Systems, which total about 20% of the state's assets. Read more.
Sam Gallo, CAIA, was selected as a recipient of the 2012 Institutional Investor Rising Star Award. He is a Managing Director at PricewaterhouseCoopers ("PwC") working as an alternative investments subject matter specialist, consulting leading hedge fund and private equity asset managers on industry best practices. Additionally, Sam advises institutional investors (pensions, endowments, and foundations) on their due diligence and reporting programs, assisting them in assessing, enhancing, and/or streamlining their review processes of investment managers, advisors, and service providers. Read more.
Derek Drummond, CAIA, was named a Rising Star of Public Funds for the 11th Annual Public Pension Fund Awards for Excellence. Just over a year ago, he moved from the private sector to the public sector, becoming an analyst for the State of Wisconsin Investment Board. At SWIB Derek is responsible for conducting research and analysis on traditional as well as alternative investments within the publicly traded markets. SWIB allocates to both internal as well as external teams within the alpha space, with total assets of over $80 billion. Read more.
Peter Wright, CAIA, has joined Aon Hewitt as Vice President and is responsible for Alternative Investment business development for the Canadian practice. As a senior practitioner, his responsibilities include advising clients on matters related to investment, policy and governance of institutional assets. Peter also plays a role in strategic planning, business development and management within the practice.
Peter has 27 years of experience in capital market trading and sales, institutional money management and investment consulting. He consults to corporations, universities, not-for-profit organizations and multi-employer sponsors on issues relating to investment and risk management, including asset mix policy, manager structure and selection, alternative investments and performance monitoring. Read more.
Patrick Oberhaensli, CAIA, is Global Head of Sales and Managing Director at Syndex Capital Management Ltd. He is responsible for broadening and deepening their client base in Switzerland and abroad, and helps to closely tailor Syndex's product palette to the current needs of institutional and B2B investors.
Previously, Patrick was responsible for the development of the Swiss institutional business at Robeco Group. He also spent 13 years at UBS in audit, investment banking and institutional sales. Throughout his career, he has acquired extensive cross-asset class expertise in multiple domains such as Structured Products, Quantitative Strategies and Alternative Investments. Read more.