This chapter analyzes alternative investments as a distinct asset class within modern portfolio theory. It examines the structural characteristics of these investments, including their return drivers, illiquidity, and complexity. The discussion focuses on three principal categories: hedge funds, private equity, and venture capital, delineating their strategic approaches and risk-return attributes. The role of alternative investments in portfolio diversification and return enhancement is assessed, highlighting their function within institutional and high-net-worth investment frameworks.

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Alternative Investment

  • Shuai Chen

摘要

This chapter analyzes alternative investments as a distinct asset class within modern portfolio theory. It examines the structural characteristics of these investments, including their return drivers, illiquidity, and complexity. The discussion focuses on three principal categories: hedge funds, private equity, and venture capital, delineating their strategic approaches and risk-return attributes. The role of alternative investments in portfolio diversification and return enhancement is assessed, highlighting their function within institutional and high-net-worth investment frameworks.