EQUITY MARKETS AND ALTERNATIVE INVESTMENTS

To introduce students in a rigorous but intuitive way to the equity market environment and alternative investment techniques.

Basic Knowledge of Microeconomics, Finance, Corporate Finance, Statistics, Econometrics

Analytical skills in the assessment of the performance of the hedge fund industry and other alternative investment vehicles; working knowledge of the process through which firms create and sell securities

Morelli’s Module • Equity markets: public side vs private side; the role of investment banks. • IPO: general overview, process and case study. • Equity Research: overview, activities and regulation. • Universe of equity markets investors: long-only, hedge funds, sovereign wealth funds, retail and Investor Relations Testimonial. • Equity Follow-ons: rights issues and accelerated offerings overview, technicalities and rationale. • Debt Capital Markets, Ratings and Equity Linked Securities: overview and rationale. • ESG and Responsible Investing: Latest Trends in ESG and Investor Focus. • ESG and Responsible Investing: Framework and KPI. • M&A: public vs. private, key themes and most common structures. • Alternative Investments: real assets and structured finance. • Private Equity, Venture Capital and Financial Sponsors: overview, strategies, investment cycle and Testimonial. • Portfolio Manager Testimonial. Vitale’s Module • Market efficiency and technical analysis. • Value and growth investment. • Insider trading. • Hedge funds’ organization and structure. • Hedge funds’ strategies: Long/short, market neutral, fixed-income, global macro. • Performance analysis of funds management. • Database, indices and benchmarks. • Diversification and asset allocation.

Lhabitant (2007): Handbook of Hedge Funds John Wiley & Sons (Vitale) Investment Banks, Hedge Funds & Private Equity David Stowell Academic Press (Morelli)

Main lectures with discussions of numerical exercises, case studies and homework.

Final closed book final written exam: 50% multiple-choice questions, 50% essay-type questions.

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