To pass this unit (requires a Mark of 50 or better) the student must pass the final examination.

CLASSES

Face-to-Face Teaching: Generally 20 hours.

Timetable: Detailed timetable for classes are on the Centre’s website at www.mafc.mq.edu.au

Consultation Times: 

Students who wish to contact any of the teaching staff may do so through:

• The unit’s iLearn site, in relation to general queries (so that all students may benefit); or 
• Individual consultation with the lecturer by email in the first instance, if necessary.

REQUIRED AND RECOMMENDED TEXTS AND/OR MATERIALS

Text: Nil.

Additional Readings: 

• Case study materials are supplied. Required readings are included in the notes.
• Additional discussion data will be placed on iLearn.
• Students should assume these materials, readings and data are not examinable unless otherwise advised by the lecturer.

Lecture Notes: Available in printed form and electronically via iLearn. 

Study Problems: Students are required to work systematically through suggested technical examples. These examples will not be collected but they will help you prepare for the exams. 

Pre-unit Materials: Information papers on statistics, regression, accounting and other material may be found at http://www.mafc.mq.edu.au/applications/minimum-knowledge-requirement/pre-course-materials1/. Students should work through this material prior to commencing the degree. The material will remain a useful reference as students progress through the program.

Useful Article References: 

• Introductory articles are included in the notes.
• Other articles are also included in the notes and on iLearn.
• The lecturer will advise which articles are examinable.

Calculators: Only non-programmable calculators (no text/storage retrieval) are permitted to be used in the exam.

Assumed Access: Access to a computer with word processing and spreadsheet capability is assumed, as is general student computer literacy.

TECHNOLOGY USED AND REQUIRED

Unit iLearn Site: 

• Found by logging on to iLearn ilearn.mq.edu.au, then clicking on ECFS992 Hedge Funds.
• This is where you will find forums, downloadable resources and links to important pages.
• The forum allows you to communicate with other students and lecturer(s) and may provide supplementary material.
• You are requested to post your questions on the forums at least 24 hours prior to the assignment submission date or the examination date. Questions posted after that time may not be answered. Do not leave your questions to the last few days.

Important Notice: 

• It is important that you familiarise yourself with the unit’s iLearn site.
• Students should check the unit’s iLearn site regularly (minimum twice a week and prior to all lectures) and look for updates and distribution of materials (including case studies) related to the unit or assessments and, if relevant, participate in forum discussions.

SESSION 1

Topics:

• Introduction
  • Review of unit outline
• What are Alternative Assets?
  • Building up of a formal definition
• Features of the three main categories
  • Real Assets
  • Hedge Funds
  • Private Equity
• Democratisation of Alternatives
  • Liquid Alts
  • Alternative Risk Premia

SESSION 2

• Trading Techniques
  • Use of Derivatives
  • Leverage
  • Short Selling
• Investment Strategies
  • Macro
  • Equity
  • Event Driven
  • Relative Value

SESSION 3

• Class Presentation
  • 10 min per presenter including questions

SESSION 4

• Mean Variance Optimisation
• Role of Alternatives in Portfolios
• Alternative Expected Returns
• Alternative Portfolio Construction techniques
• Factor Analysis

SESSION 5

• Performance Measurement in Alternatives
• Alternative Indexing
• Fees

SESSION 6

• Contemporary Issues and Challenges facing Alternative Assets

ECFS992 has broadened beyond hedge funds to now include the full range of alternative investments, namely real assets, hedge funds and private equity. The unit explores the investment strategies utilised within each category and the role they play in constructing a diversified portfolio.

Note: ECFS992 will be known as Alternative Assets in 2019.

This Unit Guide may be subject to change. The latest version is on the Centre’s website at www.mafc.mq.edu.au.

Students should read the Unit Guide carefully at the start of term. It contains important information about the unit. If anything is unclear, please consult one of the unit lecturers.

University Policy on Grading:

• Macquarie University’s Academic Senate has established a Grading Policy available at http://www.mq.edu.au/policy/docs/grading/policy.html. Your final result will include: 
  • A Grade ranging from Fail Hurdle to High Distinction; and
  • A numerical Mark, which is a summation of the individual assessment components, providing the examination component is passed.
• It is important to note:
  • The Policy does not require that a minimum or maximum number of students are to be failed in any unit; 
  • Grades will not be allocated to fit a predetermined distribution; and
  • Grades for all individual assessment items will be released to students, but Marks may not necessarily be released.

Specific Unit Grading: 

•  To pass this unit (i.e. requires a Mark of 50 or better) the student must pass the final examination.
  • Students who have attained a total raw mark of 50% or greater in a unit, but have failed the unit’s exam requirement and who have demonstrated “sufficient effort” in the exam, will be granted a single opportunity to sit a Supplementary Exam which will be graded on a pass/fail basis. The unit mark and grade for students who pass this examination will be those corresponding to the original total raw mark of all their assessment tasks, including the original exam. That is, the Supplementary Hurdle Exam only determines the meeting of the hurdle requirement. Students who have attained a raw mark of 50% or greater in a unit, yet failed all attempts at the requirement, will be awarded an Fail Hurdle grade with a final Mark of 49.
• All final Marks and Grades in the Applied Finance Centre are determined by a grading committee and are not the sole responsibility of the Unit Convenor.

Review of Grade and final examination Script viewing:

• A student who has been awarded a final grade for a unit and who does not believe it is an accurate reflection of their performance, and has grounds for such a claim and can demonstrate those grounds, may apply to have their grade reviewed. 
• For information on requesting a review of grade and/or viewing your final exam script, please refer to the University’s Grade Appeal Policy at http://www.mq.edu.au/policy/docs/gradeappeal/policy.html and MAFC Program Rules at http://www.mafc.mq.edu.au. 

Al Clark is a fund manager with over 25 years of commercial experience managing Multi-Asset solutions. He has structured asset allocation solutions for institutional clients across the globe.

Al is currently teaching part time on the Faculty at the Macquarie University Applied Finance Centre. His previous roles include Global Head of Multi-Asset for Nikko Asset Management in Tokyo; Head of Multi-Asset Asia Pacific for Schroders based in Singapore; Head of Multi-Strategy for BT in Sydney and Portfolio Manager for Macquarie Investment Management in fixed income and currency. Al started his investment career as a futures trader in Sydney in the early 90s.

Al is a former alumnus with a Masters of Applied Finance from Macquarie University. He also holds a Bachelor of Education from the University of Canberra.