All you ever wanted to know about Hedge Funds

I didn't have the baby this week, so I was able to work on a very difficult session. Alternative investments (AI) deals mostly with real estate and hedge funds and some of the unique aspects of valuing them. There are half a dozen readings and I have finished 5 and a half. The trick is that it is of course the most difficult reading this week. The hedge fund readings are entirely conceptual dealing mostly with their unique risks. However, if I were a betting man I would bet that they will ask about real estate valuation. Anyone who has been paying attention to the news knows that the nation (and globe) is in a recession. The talking heads have blamed the proximate cause to be the subprime mortgages. Relative to the CFA program that means derivatives (SS 16 & 17), fixed income securities (SS 14 & 15), and real estate valuation (this one). I fully expect them to come correct on the exam in some misguided notion that my performance on a multiple choice test in June 2009 could prevent mistakes made in June 2007. However, those 5 session will have at least that many item sets on the exam. That is at least 25% of the test. If I perform well here, it will go a long way toward reaching my goal.

The part of the reading I haven't finished I have purposely put off until Saturday and Sunday. Saturday I want to spend the day on the reading and practice questions. Sunday I'll review the entire session. AI should be an area where I get at least 4 of 6 if I do my job right. This is one of the harder parts of the preparation right now. I'm in the middle of the journey. I have to motivate myself to work hard in February for something that won't pay off until June and frankly I have to do it alone. I don't know any other candidates and because I'm unemployed I can't afford some of the classes offered by the prep companies. My family and friends love me but I can't discuss hedge funds with people who don't know the difference between a debit and a credit. I've been here before and I'll get through it but if you're driving from NY to LA, then Indiana ain't nothing but a place to refill your gas tank.