In this video, DailyAlts.com publisher and editor Brian Haskin sits down with CAIA’s Keith Black at the Investing in Liquid Alternatives conference to discuss CAIA’s various educational programs and exams, his definition of “liquid alts,” “risk-on” vs. “risk-off” assets, and volatility in the markets. Mr. Black is Managing Director of Exams and Curriculum for the CAIA Association.
The CAIA’s core program covers all areas of alternative investments – both liquid and private – and is broken down into Level 1 and Level 2 sections, each of which concludes with an exam. In addition, the CAIA Association recently added a self-paced, 20-module program with a 100% pass rate called the Fundamentals of Alternative Investments.
As for a definition of “liquid alts,” Mr. Black differentiates them from “private alts” that don’t adhere to the ’40 Act, and describes liquid alts as products pursuing hedge-fund-like strategies within the mutual-fund structure. Ultimately, in Mr. Black’s view, there are only two asset classes – “risk-on” and “risk-off” – and he considers volatility is part of the “risk off” asset class due to its significant negative beta to the equity markets.
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