Stephen Todd Walker - Understanding Alternative Investments: Creating Diversified Portfolios that Ride the Wave of Investment Success

Praise for Stephen Todd Walkers
Understanding Alternative Investments

Few finance books today capture the true essence of tactical allocation and why it is crucial to make adjustments to a portfolio like Understanding Alternative Investments does. By understanding that risk premiums change with market conditions, it can be possible to employ tactical asset allocation strategies to improve investment returns.

Neil Peplinski, CFA, Managing Partner, Good Harbor Financial, LLC

One of the best finance books ever written on venture capital. Venture capital moves in waves and riding the next wave is not always easy, which is why every investor, venture capital partner, and entrepreneur should study this book.

Gary Rubinoff, Managing Partner, SummerHill Venture Partners

His latest book is an excellent read for financial services professionals who want to deepen their knowledge of alternative investments. Todd has remarkable insights on how alternative investments can be integrated into variable annuities and 401(k) plans.

David Nanigian, PhD, Assistant Professor of Investments, The Richard D. Irwin Graduate School

Anyone who starts a business is a venture capitalist, an exercise highly valued by our society. This book will acquaint the reader with the amazing depth and span of venture capital markets and the opportunities they present to the investor.

Dr. William C. Dunkelberg, Chief Economist, National Federation of Independent Business and former Dean of the Fox School of Business and Management, Temple University

This book is a refreshing view of finance. Wave theory can also be applied to private equity, which has no boundaries.

Rupert Harrington, Managing Director, Advent Private Capital

Wave theory is timeless and should be learned by every business student. One can learn a lot from Understanding Alternative Investments. It should be mandatory reading.

Brad Leve, Assistant Director, Farrell Corporate Innovation and Entrepreneurship Center, Smeal College of Business, The Pennsylvania State University

Walkers new book, Understanding Alternative Investments, thoughtfully extends the application of his wave theory to real estate (as well as additional alternative investments) and provides valuable insights to investors and managers alike.

Robert L. Cooney Jr., Cofounder and Managing Principal, Steel Castle Capital, LLC

The nature of riskand the appetite for it have changed greatly since the onset of the Great Recession, and so has the landscape for alternative investments. In Understanding Alternative Investments, Walker has taken a thoughtful, building-blocks approach. It is a useful navigation tool for anyone interested in hedge funds or other alternative investments.

Gregory J. Nowak, Esq., Partner, Pepper Hamilton LLP, and author and lecturer on alternative investments and structures

Weathering todays investment market is more challenging than ever. Walkers book provides investors with the critical tools needed when allocating real estate as part of a diversified portfolio. Understanding Alternative Investments illustrates how alternative investments, such as real estate, can provide attractive risk-adjusted returns in an economic cycle.

Jake E. Hannah, Commercial Real Estate Professional

Crowdfunding is the next wave. Extremely helpful book for anyone raising capital or investing in early stage companies.

Bill Marvin, CEO and Cofounder of InstaMed

One needs to watch the waves when investing in or raising venture capital especially with technology.

Bami Bastani, President and Chief Executive Officer, Meru Networks

Pension plan sponsors, endowments and foundations as well as pension consultants have all warmed up to managed futures in a significant way over the past decade. This book clearly shows the merits of managed futures and how they can be used to further diversify a portfolio. The attractive long-term, risk-adjusted (and noncorrelated) returns are one important way institutions can generate much-needed alpha in an era where much more horsepower is required beyond the traditional paradigm of stocks and bonds.

David Lerman, Senior Director, Asset Managers, Products and Services, CME Group

Understanding Alternative Investments is an essential tool to prepare for finance interviews. It offers comprehensive yet accessible insight into portfolio diversification with alternative investments that I used to impress my interviewers and receive job offers from bulge bracket, private equity, and real estate firms.

Tony Murphy, Student at the Wharton School of the University of Pennsylvania

Perceptive work. Anyone truly interested in helping improve the cardiovascular problems of today should read this book whether they are passionate about seeing a deadly disease get eradicated or as an investor in this space. Todd has sparked a new movement with Cardio Companies as he calls them. Investors have the potential to make money as well as help those inflicted with the number one killer of women and men worldwide, cardiovascular disease.

Roger Schwab, Sports/Medicine Director, Main Line Health and Fitness

Venture capital has changed with the emergence of crowdfunding and P2P financing. This evolution makes a working understanding of alternative investments critical for entrepreneurs and those hoping to reshape the world of finance.

Justin W. Askins, Esq., Attorney, Investor, Venture Capitalist

This book provides any entrepreneur as well as investors valuable insight regarding crowdfunding.

Steve Graham, CEO of Scitt Kits, LLC and Serial Entrepreneur

UNDERSTANDING ALTERNATIVE INVESTMENTS

CREATING DIVERSIFIED PORTFOLIOS THAT RIDE THE WAVE OF INVESTMENT SUCCESS

STEPHEN TODD WALKER

UNDERSTANDING ALTERNATIVE INVESTMENTS

Copyright Stephen Todd Walker, 2014.

All rights reserved.

First published in 2014 by

PALGRAVE MACMILLAN

in the United Statesa division of St. Martins Press LLC,

175 Fifth Avenue, New York, NY 10010.

Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS.

Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world.

Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries.

ISBN: 9781137370181

Library of Congress Cataloging-in-Publication Data

Walker, Stephen (Stephen Todd)

Understanding alternative investments : creating diversified portfolios that ride the wave of investment success / Stephen Todd Walker.

pages cm

ISBN 9781137370181 (hardback)

1. Portfolio management. 2. Investment analysis. I. Title.

HG4529.5.W355 2014

332.6dc23 2013047212

A catalogue record of the book is available from the British Library.

Design by Newgen Knowledge Works (P) Ltd., Chennai, India.

First edition: July 2014

10 9 8 7 6 5 4 3 2 1

Printed in the United States of America.

DISCLAIMERS AND DISCLOSURES

This book is designed to provide accurate and authoritative information in regard to the subject matter covered, and the information, analysis, and data contained herein are based on sources believed to be reliable. The author and Stratosphere, LLC do not, however, guarantee the timeliness, accuracy, or completeness of the information provided. The author has been associated with a number of leading investment banking firms in his career but the opinions in this book are his alone. All information and opinions herein are subject to change without notice and are not intended to be the primary basis for any investment decision. The strategies described do not address individual financial objectives and may not be suitable in every situation. The appropriateness of a particular investment or strategy depends on an investors particular circumstances and objectives. The author and Stratosphere, LLC do not intend to render individual financial, investment, tax, legal, accounting, or other professional advice or services in this book. If personal advice or services are required, the reader should engage a competent professional. Nothing in this book should be construed as a recommendation about the advisability of purchasing or selling any particular security. The charts and graphs are for illustrative purposes only, and past performance of any security described in this book is not necessarily indicative of and does not guarantee comparable future results. All investments are made at the readers own risk, and the publisher, the author, or Stratosphere, LLC shall not be liable or cannot be held responsible for any losses or damages, including without limitation special, incidental, consequential, or other damages, incurred as a result of actions taken or not taken on the basis of the information, opinions, or strategies set forth or described herein. The author, the authors clients, and/or Stratosphere, LLC may invest in securities mentioned in this book.