With the rapid development of global finance, alternative investments such as private equity, hedge funds, real estate, infrastructure, commodities, and derivatives have become increasingly important in the asset allocation of institutional investors and high net worth individuals. However, alternative investments involve more complex strategies and have higher requirements on professional knowledge. Therefore, systematically learning alternative investment knowledge through professional alternative investment books is critical for those who want to enter the alternative investment industry or manage their own alternative investment portfolio. This article will recommend several authoritative and classic alternative investment books covering private equity, hedge funds, real estate, infrastructure, commodities, and derivatives.
leading alternative investment books help build a solid knowledge base
Many leading alternative investment books can help readers build a solid knowledge base on alternative investment across different asset classes. For example, in private equity, ‘Private Equity: History, Governance, and Operations’ by Harry Cendrowski et al. provides a comprehensive overview of the private equity industry. It covers the history, structure, governance, and investment strategies of private equity funds. Another private equity classic is ‘Venture Capital & Private Equity’ by Josh Lerner et al., which focuses more on venture capital and growth equity. For real estate investing, ‘Real Estate Finance and Investments’ by William Brueggeman and Jeffrey Fisher is a definitive textbook that covers both physical and financial aspects of real estate investing.
In hedge fund investing, Jack Schwager’s ‘Hedge Fund Market Wizards’ compiles interviews with many legendary hedge fund managers, revealing their investment philosophies, strategies and insights. On the commodity side, ‘Commodities Rising’ by Chris Mayer offers a top-down approach to commodity investing and allocating capital to natural resources. For derivatives and structured products, ‘Options, Futures, and Other Derivatives’ by John Hull is one of the most authoritative textbooks used by major business schools globally. Some other books like ‘The Intelligent Investor’ by Benjamin Graham, ‘A Random Walk Down Wall Street’ by Burton Malkiel, and ‘Alternative Investments’ by CAIA Association are also commonly recognized as alternative investment classics.
need to match personal background when choosing alternative investment books
When choosing alternative investment books, it is important to match them with your personal background and learning objectives. If you have a non-finance background and want to start from scratch, introductory books like ‘Alternative Investments’ by CAIA Association, ‘All About Alternative Investments’ by R. Bruce Edelson, and ‘Alternative Investments’ by Hedge Fund Research are good starting points. They cover alternative asset classes at a high level without going too deep into details. But if you already have an MBA or CFA and want to strengthen specific domains, then more focused and technical books are preferred. For example, if you want to specialize in private equity, go for ‘Private Equity’ by David Stowell; if you target hedge fund investing, read ‘Hedgehogging’ by Barton Biggs which reveals insights from an ex-hedge fund manager.
need balanced and diversified reading list covering different alternative asset classes
Building a solid alternative investment knowledge base requires a balanced and diversified reading list that covers different alternative asset classes. Sticking with just one asset class runs the risk of developing a lopsided perspective. Therefore, it is important to include authoritative books on private equity, hedge funds, real estate, commodities, infrastructure and derivatives for a wholesome learning experience. The reading list does not have to be extremely long, but should have adequate representation across alternative asset classes. In addition, learning alternative investments is a continuous journey, so do leave room to accommodate new quality books when they become available. With persistence and an open mind, you will soon master alternative investments through self-directed learning using the best alternative investment books.
In conclusion, systematically learning alternative investments through professional alternative investment books is critical for those who want to excel in this field. Leading alternative investment books can help build a solid knowledge base across different asset classes. It is important to match books with one’s background and learning objectives, as well as develop a balanced reading list covering diverse alternative asset classes. With an open mindset and persistence, the best alternative investment books will pave the way for mastering alternative investments through self-directed learning.