Performance Measurement for Alternative Investments
Book Details
Author(s)Timothy F. Peterson
PublisherRisk Books
ISBN / ASIN1782722262
ISBN-139781782722267
AvailabilityUsually ships in 24 hours
Sales Rank276,004
MarketplaceUnited States 🇺🇸
Description
Despite enormous growth in alternative investment, performance measurement practices in this area are rough around the edges. Performance analysts tasked with measuring and reporting the returns of alternative assets face issues regarding which return method to use, leverage that creates negative denominators in the return calculation, a host of valuation concerns, and challenges associated with benchmarking these unique strategies.
Performance Measurement for Alternative Investments is the first of its kind to explain how to overcome these major hurdles, and seeks to help unite two worlds that heretofore have been kept fairly well apart: that of the performance analyst seeking to communicate results to stakeholders, and that of the portfolio manager responsible for investment decision making.
Author Timothy Peterson, a Partner at Ashland Partners with executive responsibility for over 100 client relationships, including the firm's largest household name clients, is an investment performance measurement expert who specialises in alternative assets.
The job of a performance measurement analyst is to calculate and report the rate of return on investments. These returns are reported to existing investors, and often reported to prospective clients as part of a marketing initiative. For traditional investment management (stocks and bonds) this is relatively simple and ample resources exist to aid a performance analyst or portfolio manager in that regard. However, for alternative investment (venture capital, private equity, hedge funds), calculation and reporting investment returns is more complicated. This book explains how to calculate and report those returns it is a how to manual designed with the practitioner in mind, the person that is actually tasked with calculating and presenting investment results.
As the investment community and infrastructure globalizes, non-U.S. firms must become increasingly aware of what is arguably the strictest investment regulatory environment in the world. No firm that hopes to market or operate in the U.S. can do so without a fairly comprehensive understanding of the thousands of pages of regulation that govern investment advisers, companies, and securities issuance in the U.S.
Performance Measurement for Alternative Investments:
- Enables the reader to correctly calculate long-short performance;
- Provides a general hierarchy for performance presentations that addresses all the various fee and expense treatments associated with alternative investment vehicles;
- Describes how to calculate and report returns on derivatives and other assets that use notional values; and
- Addresses the challenges and potential solutions of benchmarking alternative investment strategies.
Performance Measurement for Alternative Investments is the first of its kind to explain how to overcome these major hurdles, and seeks to help unite two worlds that heretofore have been kept fairly well apart: that of the performance analyst seeking to communicate results to stakeholders, and that of the portfolio manager responsible for investment decision making.
Author Timothy Peterson, a Partner at Ashland Partners with executive responsibility for over 100 client relationships, including the firm's largest household name clients, is an investment performance measurement expert who specialises in alternative assets.
The job of a performance measurement analyst is to calculate and report the rate of return on investments. These returns are reported to existing investors, and often reported to prospective clients as part of a marketing initiative. For traditional investment management (stocks and bonds) this is relatively simple and ample resources exist to aid a performance analyst or portfolio manager in that regard. However, for alternative investment (venture capital, private equity, hedge funds), calculation and reporting investment returns is more complicated. This book explains how to calculate and report those returns it is a how to manual designed with the practitioner in mind, the person that is actually tasked with calculating and presenting investment results.
As the investment community and infrastructure globalizes, non-U.S. firms must become increasingly aware of what is arguably the strictest investment regulatory environment in the world. No firm that hopes to market or operate in the U.S. can do so without a fairly comprehensive understanding of the thousands of pages of regulation that govern investment advisers, companies, and securities issuance in the U.S.
Performance Measurement for Alternative Investments:
- Enables the reader to correctly calculate long-short performance;
- Provides a general hierarchy for performance presentations that addresses all the various fee and expense treatments associated with alternative investment vehicles;
- Describes how to calculate and report returns on derivatives and other assets that use notional values; and
- Addresses the challenges and potential solutions of benchmarking alternative investment strategies.
