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Alternative Investments Defined

In: Alternative Investments and the Mismanagement of Risk

Author

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  • Dimitris N. Chorafas

Abstract

The term alternative investments is derived from the way in which capital is employed, an approach which is not the same as in traditional investment methods. Classically a fund manager tries to obtain a maximum performance by buying a stock when it is cheap and selling it when the price has gone up. His goal is to beat the index. He is also satisfied if he has lost less value than the index, when the market has fallen.

Suggested Citation

  • Dimitris N. Chorafas, 2003. "Alternative Investments Defined," Palgrave Macmillan Books, in: Alternative Investments and the Mismanagement of Risk, chapter 1, pages 1-27, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50894-1_1
    DOI: 10.1057/9780230508941_1
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