1st Edition

Encyclopedia of Alternative Investments

Edited By Greg N. Gregoriou Copyright 2008
    592 Pages 46 B/W Illustrations
    by Chapman & Hall

    A pioneering reference essential in any financial library, the Encyclopedia of Alternative Investments is the most authoritative source on alternative investments for students, researchers, and practitioners in this area. Containing 545 entries, the encyclopedia focuses on hedge funds, managed futures, commodities, and venture capital. It features contributions from well-known, respected academics and professionals from around the world. More than a glossary, the book includes academic references for money managers and investors who want to understand the jargon and delve into the definitions.

    About the Editor

    Greg N. Gregoriou, Ph.D., is Professor of Finance in the School of Business and Economics at the State University of New York, Plattsburgh, USA. A prolific author, Dr. Gregoriou is hedge fund editor of the Journal of Derivatives and Hedge Funds as well as an editorial board member of the Journal of Wealth Management and the Journal of Risk Management in Financial Institutions. His research primarily focuses on hedge funds and managed futures.

    Absolute Return

    Absolute Return Index


    Acceleration
    Accredited Investor
    Active Premium
    Activists
    Aftermarket
    Aftermarket Orders
    Aftermarket Performance
    Agency Problem
    Aggregation
    Agricultural Trade Option Merchant
    Allowances
    Alpha
    Alternative Asset

    Alternative Asset Class


    Alternative Betas
    Alternative Alpha

    Alternative Investment strategies


    Angel Financing
    Angel Groups
    Angel Investor
    Annualized Compound Return
    Annualized Standard Deviation
    Approved Delivery Facility
    Arbitrage
    Arbitration
    Archangel
    Artificial Price
    Asset Allocation
    Asset-Based Style Factors
    Asset-Weighted Index
    Assignment
    Associated Person
    At-the-Money Option
    Attrition Rates
    Average Gain (Gain Mean)
    Average Return
    Backfilling Bias
    Back Pricing
    Backwardation
    Basis
    Basis Grade
    Basis Swap
    Beauty Contest
    Benchmark
    Beta
    Bid-ask Spread
    Block trade

    Bonds (overview of types)


    Bookbuilding
    Booking the Basis
    Bottom-Up Investing
    Bridge Financing
    Bridge Loan
    BTOP 50 Index
    Bucketing
    Buyer’s Market
    Calendar Report
    Call Option
    Calmar Ratio
    Cancellation
    Capital Call
    Capital Commitment
    Capital Distribution
    Capital Structure Arbitrage
    Carried Interest
    Carrying Charge

    Carve-Out


    Cash Commodity
    Cash Market
    Cash Settlement
    Cash Settlement (An Example)
    CDO
    Certification

    Chinese Wall


    CISDM Indexes
    Clawback
    Clearing Members
    Clearing Organization
    Clearing Price
    Closing

    Coefficient of Determination

    Coffee Market


    Committed Capital

    Commodity Credit Corporation (CCC)


    Commodity Exchange Act
    Commodity Futures Indices: Spot, Excess, and Total Return

    Commodity Futures Trading Commission

    Commodity-Linked Bond


    Commodity Option
    Commodity Pool
    Commodity Pool Operator (CPO)
    Commodity Price Index
    Commodity Research Bureau (CRB)
    Commodity Trading Advisor
    Companion Fund
    Conditional Value at Risk (CVaR)
    Contract Grades
    Contract Month
    Contract size
    Contango
    Core Principle
    Commodity Futures Modernization Act of 2000
    Commodity Swap
    Commodity Trading Advisors (CTA)
    Community Development Venture Capital
    Company Buy-Back
    Confirmation Statement
    Contract Market
    Convergence
    Conversion Factors
    Convertible Arbitrage
    Corn Market
    Cornish-Fisher Value-at-Risk for Portfolio Optimization
    Cornish-Fisher Value-at-Risk

    Corporate Structure Arbitrage

    Corporate Venture Capital


    Correlation Coefficient
    Cost of Tender
    Cost, Insurance and Freight (CIF)
    Cotton Market
    Counterparty Risk
    Covenants
    Covenants (Venture Capital and Private Equity Context)

    Covenants (in Loans or Securities Issues)


    Covered Option
    Crack Spread
    CRB Reuters
    Credit Default Swap
    Cross-Hedge
    Cross-Trading
    Crude Oil Market

    CSFB Tremont Hedge Fund Index


    Curb Trading
    Currency Classification
    Deal Flow
    Deferred Delivery Month
    Deferred Futures
    Deliverable Grades
    Delivery Date
    Delivery Instrument
    Delivery Notice
    Delivery Point
    Demand Rights

    Derivatives Transaction Execution Facility (DTEF)


    Designated Contract Market
    Designated Self-Regulatory Organization
    Direct Public Offering
    Directional
    Discretionary Account
    Discretionary CTA
    Discretionary Trading
    Distressed Debt 
    Distressed Securities
    Diversified Classification
    Double Hedging
    Dow Jones AIG Commodity Index
    Down Capture Ratio
    Down Round                                                                                                                                                                       
    Downside Deviation
    Drag Along Right
    Drawdown
    Due Diligence
    Dutch Auction
    Dynamic Asset Allocation
    Early Redemption Policy

    Early Stage Finance


    Economically Deliverable Supply
    EDHEC Alternative Indexes
    EDHEC CTA Global Index

    Eligible Contract Participant

    Enumerated Agricultural Commodities

    Equally Weighted Index

    Equal Weighted Strategies Index


    Equity Hedge
    Equity Market Neutral
    Event Driven
    Evergreen Fund                                                                                                                                                                   
    Excluded Commodities
    Exempt Commodities
    Exercise option
    Exercise Price 

    Exit Strategy


    Expiration Date
    Extrinsic Value
    Factor Models
    Fallen angel
    Fast Market
    Feed Ratio
    Filing Range

    Final Prospectus


    Financing Round
    Firm Commitment
    First Notice Day
    First Stage Financing
    First Time Fund
    Five Against Note Spread (FAN Spread)
    Fixed Income Arbitrage
    Flipping
    Float

    Floor Broker

    Floor Trader


    Follow-on funding
    Forward contracts
    Forward Market
    Forward Volatility Agreement
    Free on Board (FOB)
    Fundamental Analysis
    Fundraising
    Funds of Funds
    Fungibility
    Futures
    Futures Commission Merchant
    Futures Contract
    Futures Industry Association

    Gain Standard Deviation


    Gain to Loss ratio
    Gate
    Gatekeeper
    General Partner Contribution/Commitment
    Generalized Treynor Ratio
    German Entrepreneurial Index

    Global Hedge Fund Index


    Global Macro
    Goldman Sachs Commodity Index

    Grandstanding Problem

    Grain Futures Act


    Greenshoe

    Greenshoe Option


    Gross Spread
    Guaranteed Introducing Broker
    Hedge

    Hedge Fund


    Hedge Fund Replication
    Hedge Ratio
    Hedging
    HFRI Fund Weighted Composite Index

    HFRI Convertible Arbitrage Index

    HFRI Distressed Index


    High Watermark
    High Net Worth Individual
    Higher Moments
    Hurdle Rate
    Implied Volatility
    Incentive Fee

    Incubator


    Independent Introducing Broker
    Information Ratio
    Initial Public Offering
    Institutional Buy Out
    Intangibles Company
    Investable Hedge Fund Indexes
    IPO Action Track

    IPO Price


    IPO Sentiment Index
    IPOX
    Intercommodity Spread
    Inter-delivery Spread
    Interest Rate Swap
    Internal Rate of Return (IRR)
    In The Money options
    Intrinsic Value
    Introducing Broker
    IPO-Sentiment Index
    Jensen Alpha
    Jones Model
    Kurtosis
    Large Order Execution Procedures
    Last Notice Day
    Last Trading Day
    Lead investor
    Lead manager
    Lead Underwriter

    Leverage


    Leveraged Buy Outs
    Licensed Warehouse
    Life of Contract
    Limit
    Limited Partners
    Limited Partnership LLC
    Liquid Markets
    Liquidate
    Live Hogs Market
    Lock-Up
    Lock-Up Period
    Long Position
    Long Short Equity
    Long the Basis
    Look-back Straddle
    Losing Streak
    Loss Standard Deviation
    Managed Funds
    Managed Funds Association (MFA)
    Management Buy-In
    Management Buy-Out
    Management Fee
    Manager Skill
    Many-to-Many
    Margin
    Maintenance Margin
    Managed Account
    Managed Account Platforms
    Margin Call
    Market Neutral
    Mark-to-Market
    Market Order
    Market Timing Strategy
    Maximum Drawdown
    Maximum Price Fluctuation
    Merger Arbitrage
    Mezzanine Financing
    Minimum Acceptable Return
    Minimum Price Fluctuation
    Modern Portfolio Theory
    Modified Jones Model

    Modified Sharpe Ratio


    Modified Value-at-Risk
    Mortgage-Backed Securities (MBS)
    Mount Lucas Management Index
    Multi-Manager Hedge Fund

    Multi-Strategy Fund

    Municipals Over Bonds Spread (MOB Spread)


    Naked Options
    National Futures Association
    National Introducing Brokers Association (NIBA)
    Natural Gas
    Net Asset Value (NAV)
    Nearby Delivery Month
    Net Long

    Non-Directional


    Notice of Intent to Deliver
    Notional Principal
    Offering Date
    Offering Memorandum
    Offering Price

    Offering Range


    Offset
    Offshore Fund
    Offshore Jurisdiction
    Offshore Tax Haven
    Omega
    Omnibus Account
    One-to-Many
    Open Interest
    Open Outcry
    Open Trade Equity
    Opening Premium
    Opening Range
    Opportunistic
    Optimization
    Option Buyer
    Option Contract
    Option Premium
    Options
    Option Seller
    Order Book
    Out-of-the-Money Option
    Overallotment
    Out Trade
    Overbought
    Overpricing
    Oversold

    Oversubscribed


    Over The Counter Market (OTC)
    Ownership Buyout (OBO)
    Pairs Trading
    Par

    Participating Underwriters


    Pearson Correlation Coefficient
    Peer Group Based Style Factors
    Penalty Bid
    Performance Fee
    Performance Persistence
    Piggyback Registration
    Pipeline
    Pit
    Pooled Fund
    Position Limit
    Position Trader
    Post-Money Valuation
    Postponement
    Prearranged Trading
    Preliminary Prospectus
    Premium
    Pre-Money Valuation
    Price Discovery

    Price Limit

    Price Range


    Prime Broker
    Principal
    Principal Shareholder

    Private Placement

    Privately Held


    Price Basing
    Price Revision
    Private Equity
    Projection

    Prospectus

    Public Commodity Funds


    Public Market Equivalent (PME)
    Public Offering
    Public to Private
    Public Venture Capital
    Put Option
    Pyramiding
    Qualified Investor
    Quiet Filing 
    Quiet Period
    Ranking
    Ratchets
    Real Option Approach
    Recap Buyout
    Recapitalisation

    Red Herring

    Redemption Period


    Registration Statement
    Regulation D Fund
    Regulation D Offering
    Relative Value Arbitrage
    Reportable Position
    Reporting Guidelines
    Return-Based Style Factors
    (Reverse) Crush Spread
    Reverse Leveraged Buyout
    Right of First Refusal
    Risk Arbitrage

    Roadshow


    Rogers International Commodities Index (RICI)
    Roll-Up
    Round turn
    Rules (NFA)
    Sample Grade
    Scalper
    Seasoned Equity Offering (SEO)
    Second Stage Financing
    Secondaries
    Secondary Action Track
    Secondary Buy-Out
    Secondary Market
    Secondary Offering
    Sector Breakdown
    Sector Strategy
    Security Future
    Seed Capital
    Seed Money
    Seed Stage Financing
    Segregated Account
    Selection Bias
    Self-Regulatory Organization
    Self Selection Bias
    Seller's Market
    Selling Group
    Selling Concession
    Selling Shareholder
    Semi-Deviation
    Settlement Date
    Settlement Price 

    Shelf Filing


    Short Exposure
    Short Position
    Short Selling Strategy
    Short Squeeze
    Short the Basis

    Single Strategy Fund


    Single Strategy Funds of Funds
    Skewness
    Sliding Fee Scale
    Social Entrepreneurship
    Social Venture Capital                                                                                                                                                        
    Soft Commodities
    Soft Dollars
    Sortino Ratio
    Soybean Market
    Speculator
    Spin Off

    Spot


    Spot Commodity
    Spot Contract
    Spot Month
    Spreading
    Staging
    Stale Pricing
    Standard Error
    Statistical Arbitrage
    Sterling Ratio
    Stress Testing
    Stressed Markets
    Strike Price
    Strong Hands
    Structured Products
    Style Analysis
    Survivorship Bias
    Swap
    Sweat Equity
    Style Drift
    Syndicate
    Syndicate Bid
    Syndicate Manager
    Syndicated Sale
    Syndication
    Systematic CTA
    Systematic Trading
    Synthetic Future
    Takedown
    Technical Analysis
    Tender Offer
    Term Sheet
    Thirs Stage Financing
    Tick
    Time Value
    To-Arrive Contract
    Tombstone
    Top-Down Investing
    Tracking Error
    Tranche
    Transparency
    Trend Following
    Treynor Ratio
    Turnaround
    Uncovered Options
    Underlying Commodity
    Underlying Futures Contract
    Underpricing
    Underwriter

    Underwriting Spread

    Unseasoned Equity Offering


    Up Capture Ratio
    US Equity Hedge
    Valuation Guidelines
    Value Added Monthly Index

    Value-at-Risk


    Variance Swap
    Venture Capital                                                                                                                                                                    
    Venture Capital Financing
    Venture Capitalist
    Venture Capital Method                                                                                                                                                    
    Venture Factoring
    Venture Leasing
    Venture Philanthropy
    Venture Valuation
    VIX
    Volatility
    Warehouse Receipt
    Weather Premium
    White label
    Withdrawn Offering

    Biography

    Greg N. Gregoriou

    "…a superbly presented source of information. It is positively encyclopedic, covering almost anything relative to alternative investments. In one single volume of 540 pages and 545 entries, it allows the reader to identify, define, and clarify the meaning of almost any investment terms used in the area. … a comprehensive, definitive, and up-to-date collection of work that will be a valuable addition to our respective reference library. Its scope and breadth will make it an invaluable resource for the professional, the academic researcher, and for the student in this rapidly growing area."
    —François-Serge Lhabitant (Professor of Finance, HEC Lausanne and EDHEC Business School, and Chief Investment Officer, Kedge Capital), Journal of Derivatives and Hedge Funds, 2009

    "…One of the strengths of this encyclopedia is the collaborative efforts of a worldwide team of more than 100 academicians and practitioners who offer their expertise in providing detailed definitions and supporting evidence for the financial terms. … The encyclopedia offers an up-to-date reference to the financial terms met frequently—or not—in the alternative investment areas … a necessary comprehensive guide in the alternative investments area. It provides standardization in the terminology of the terms used and offers a handy everyday reference book. It belongs in the library of every participant in the alternative investments field, both the academic and the practitioner. It fills a resource gap…"
    —Vassilios N. Karavas (Credit Agricole Asset Management Alternative Investments), Journal of Wealth Management, 2009

    “The Encyclopedia of Alternative Investments is a great reference source for both students and professionals seeking an understanding of the various alternative investment terms. It provides definitions for nearly 600 alternative investment terms, which are provided in an easily accessible format rather than looking up the definitions online. The terms are defined by academics and professionals in the alternative investment space and are defined in easy-to-understand terms. Investor interest in alternative investments continues to grow, and this encyclopedia provides a comprehensive source of definitions for the alternative investment areas of venture capital, hedge funds, managed futures, and commodities. The encyclopedia provides the definitions by category, making definitions easily obtainable. It is a valuable reference source for all those individuals interested in alternative investments.”
    —Hilary Till, Principal, Premia Capital Management, LLC, Chicago, Illinois, USA

    “The explosive growth of alternative investments in the last ten years has outpaced the amount of information available about them. This encyclopedia provides a useful and needed reference to help fill that gap!”
    —Steven N. Kaplan, Neubauer Family Professor of Entrepreneurship and Finance, University of Chicago Graduate School of Business, Illinois, USA

    “Given the explosive growth of alternative investment strategies, a new language in finance has emerged. The Encyclopedia of Alternative Investments fills an important gap. It is a must have for those serious about this important asset class.”
    —Campbell R. Harvey, Duke University, Durham, North Carolina, USA, and author of the Financial Glossary for Bloomberg, Yahoo Finance, and the New York Times

    “Written by over 100 well-known and respected academics and practitioners from around the world, this is an authoritative and up-to-date source of information about hedge funds, managed futures, commodities, and venture capital.”
    —Carol Alexander, Chair of Risk Management and Director of Research, ICMA Centre, Business School, University of Reading, UK

    "What this book has to offer are substantive definitions of over 500 relatively esoteric investment-related terms, with a [focus] on hedge funds, funds of hedge funds, managed futures, commodities and venture capital. Contributors are drawn from an impressive international array of academics and practitioners; bibliographic references are included with each entry; a subject index enhances the book’s value and ease of use . . . This book will be useful for libraries with sufficient interest in financial research . . ."

    – D. Highsmith, California State University- East Bay, in Choice: Current Reviews for Academic Libraries, April 2009, Vol. 46, No. 8