Alternative Investments for CFA Level II

Alternative Investments at Level II is usually about structure, liquidity, and economic exposure rather than surface labels. The exam asks whether you understand how the investment actually creates or destroys value, where the cash flows come from, and which risks the stated return series may be hiding.

Current Chapter Focus

• private-market structures and the implications of illiquidity
• hedge-fund strategies interpreted through factor exposure and implementation logic
• real-asset and commodity exposure viewed through economic mechanism rather than marketing language
• due-diligence judgment where the vehicle structure matters as much as the headline objective

This chapter root is live. Substantive lessons will follow in a later batch.