Narsee Monjee Assignments April 2022 Evan is a portfolio m

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Alternative Investments I

1. Evan is a portfolio manager at Finance Advisors, a wealth fund. He is planning to
include real estate in his portfolio. Explain the various approaches in detail that Eva can use to value the real estate. Also, mention the approaches for the valuation of REITS.(10 Marks)

2. Seema is working as an intern at NMIMS Fund. Recently there have been lot of news related to the increased investment in the infrastructure segment by the investors. Prepare a report on behalf of Seema enlisting the forms of the infrastructure investments along with examples for each form. Also, list the benefits of investment in infrastructure segment. (10 Marks)

3.a. ABC Capital is a hedge fund with an initial investment capital of $250 million. In its first year, the fund earns a return of 35%. The fund charges a 2% management fee based on assets under management at the end of the year and a 20% incentive fee net of management fee and also, there is a 5% hurdle rate calculated on beginning capital for the year. In the second year, the fund value declined by 10%. For the second year, calculate the following:

a. Management Fees
b. Incentive Fees
c. Investor s effective return (5 Marks)

3.b. Enlist how the brownfield investments differ from greenfield investment. Also, for a company who is planning to expand its operations in foreign country which type of investment would be riskier and why? (5 Marks)

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