Alternative Investment and Performance Returns - Module 2- ALTERNATIVE–CFA® Level I 2025 (and 2026)

Get our FREE CFA Level 1 summaries: https://www.finquiz.com/cfa/level-1/s... 🏝️ Alternative Investments = Where Finance Gets Wild Hedge funds, real estate, private equity, commodities—Alt Inv is the “cool kid” of the CFA curriculum. But don’t get it twisted: this section will trip you up if you’re not ready. That’s where FinQuiz steps in. 📚 Battle-Ready Summaries – Liquidity risk? Due diligence? Fee structures? We've decoded it for you 🧩 👉 https://www.finquiz.com/cfa/level-1/s... 📖 Stanley Notes – Understand the real mechanics of private equity, REITs, and hedge fund strategies 🎯 👉 https://www.finquiz.com/cfa/level-1/n... 📐 Formula Sheet – IRR, NAV, and real estate valuation methods—tight, clean, and test-day ready 👉 https://www.finquiz.com/cfa/level-1/f... 🎯 Question Bank – Tackle real-style questions that blend Alt Inv theory with CFA logic traps 👉 https://www.finquiz.com/cfa/level-1/q... ⏱️ Mock Exams – Practice like it’s exam day—Alt Inv questions included 👉 https://www.finquiz.com/cfa/level-1/m... 📦 All-in-One CFA Level 1 Access 👉 https://www.finquiz.com/cfa/level-1/ 🚀 Go Premium – Get full access, smart structure, and review tools to own Alt Inv 👉 https://www.finquiz.com/cfa-level-1-s... Timestamp Chapter 00:00 Introduction: measuring alternative-investment performance 01:00 Why alt returns are complex: IRR, MOIC, J-curve & lifecycle overview 02:31 Alternative investment life cycle: commitment → deployment → exit 05:05 Internal Rate of Return (IRR): timing-sensitive return detective 06:11 Multiple of Invested Capital (MOIC): measuring magnitude of gains 07:01 Holding-period effects: why mid-life NAVs can mislead 08:18 Leverage & margin financing: amplifying returns—and risks 12:34 Valuation challenges & fair-value hierarchy (mark-to-model vs market) 16:11 Fee structures: management fees, performance fees, watermarks & clawbacks 20:17 Hedge fund returns: strategies, redemption risk & tailored fee models 24:30 Comparing returns: vintage-year matching, survivorship & backfill biases 28:31 Conclusion: tying it all together & thinking like an analyst Master Module 2: Alternative Investment Performance & Returns – tailored for CFA® Level I candidates preparing for 2025 and 2026 exams. In this comprehensive lesson, we dive deep into the complexities of measuring performance in alternative assets: Performance appraisal challenges: dealing with staggered capital calls, illiquidity, leverage, and complex fee overlays Before‑fee vs. after‑fee returns: Learn how to calculate and interpret both, following IRR & MOIC models: Explore internal rate of return and multiple of invested capital, including limitations and real-world use Cash‑flow timing and the J‑curve: Understand how investment phases affect return curves and fund performance Complex fee structures: high‑water marks, hurdle rates, incentive and management fees — and their impact on net returns 🎯 Who this is for: CFA Level I candidates wanting targeted prep on Module 2: Performance & Returns Anyone in finance keen on understanding how alternative investments differ from public equity/debt in risk–return analysis 🧭 Video highlights: Thorough walkthrough of IRR vs. MOIC calculations Real examples of capital deployment and distribution phases Fee effects on net return – powerful explanations with exam relevance Bonus exam-oriented tips 🔔 Don’t forget to like, comment, and subscribe for more expert CFA-level insights and exam-focused breakdowns.