Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.

LEARNING OUTCOMES

By the end of the course, students understand the risk and return characteristics of alternative investments such as private equity, and hedge funds. They also understand the potential benefits and costs when alternative investments are added to standard stock/bond portfolio. Students are able compute and interpret the state-of-art private equity fund and hedge fund performance/risk measures and utilize measures when they perform the quantitative due diligence process. After taking this course, students are familiar with most important academic research in this area. They are also able to interpret academic research and use it in research-based decision making.

Credits: 6

Schedule: 10.01.2023 - 24.02.2023

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Juha Joenväärä

Contact information for the course (applies in this implementation):

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content
  • valid for whole curriculum period:

    The course gives an overview of different type alternative investments with focus on private equity and hedge fund investments. The course will critically evaluate the potential diversification benefits that alternative investment may provide for investors. For private equity and hedge fund investments, the risk and performance are assessed using state-of-art metrics that are applied by both practitioners and academics. The course gives an overview of quantitative due diligence process. The course focuses on broader questions how alternative investments can be used in the context of portfolio management and does not cover valuations of individual private equity companies or detailed information on each hedge fund investment strategy. During the course we review most important academic papers and learn to interpret the findings of the papers.

Assessment Methods and Criteria
  • valid for whole curriculum period:

    Cases (60%)
    Exam (40%)

Workload
  • valid for whole curriculum period:

    Contact teaching (specified in course syllabus)
    Independent study (specified in course syllabus)
    Exam, 3 h

DETAILS

Substitutes for Courses
Prerequisites
SDG: Sustainable Development Goals

    1 No Poverty

    8 Decent Work and Economic Growth

FURTHER INFORMATION

Further Information
  • valid for whole curriculum period:

    Teaching Language : English

    Teaching Period : 2022-2023 Spring III
    2023-2024 Spring III

    Enrollment :

    The course is offered to BIZ students only. A maximum of 80 students can be accepted to the course.

    Students at Aalto Finance M.Sc. programme (i.e. who have graduated as B.Sc.) will be guaranteed a seat on Finance M.Sc. courses. Students re-taking the course (grade already registered) will not be prioritized and can participate only if there are places remaining.

    Remaining seats are prioritized as follows:
    1. Finance M.Sc. exchange students from other universities
    2. Aalto Finance B.Sc. students with a finished B.Sc. thesis (registered in transcript of records)
    3. All other M.Sc. students at the School of Business

    Please follow carefully the registration deadlines of the courses and exams! Missing registration deadline automatically foregoes a guaranteed seat for Finance M.Sc. courses and puts prospective student at the bottom of the prioritization list. Students may be required to confirm their registration by signing the participation list circulated during the first lecture.