Overview

Chartered Alternative Investment Analyst (CAIA®) - Level II (Part 2) Course DescriptionThe CAIA® Level II, often informally referred to as "Part 2," is the second and final exam in the CAIA designation program. It builds upon the foundational knowledge of Level I and emphasizes the application, integration, and critical analysis of alternative investments within a portfolio context. This level prepares candidates to make informed investment decisions involving complex strategies and structures, while upholding professional and ethical standards. CAIA® Level II Course OverviewCore Focus Areas:Portfolio management using alternative investmentsRisk and return attribution across asset classesDue diligence and manager selectionEthical decision-making and current industry trends Key Topics Covered:Ethics, Regulations, and ESG (Environmental, Social, Governance)Ethical standards and practical decision-makingRegulatory environment affecting alternative investmentsIntegration of ESG principles in investment decisionsModels and ToolsAdvanced risk and return analysisFactor models, VaR, stress testing, and scenario analysisApplication of quantitative tools in portfolio constructionInstitutional Asset Owners and Investment PoliciesInvestment goals, constraints, and policy developmentGovernance, liabilities, and strategic asset allocationDue Diligence and Manager SelectionEvaluating fund managersOperational and investment due diligence frameworksRisk and Portfolio ManagementRisk budgeting, liquidity managementIntegrating alts into traditional portfoliosCurrent and Integrated TopicsReal-world cases and trends in alternative investingApplication of all concepts across asset classes Exam Format:100 multiple-choice questionsThree constructed response (essay-style) questionsComputer-based testing, approx. 4 hoursOffered twice per year (March and September) Learning Objectives:Apply alternative investment strategies to institutional portfoliosConduct comprehensive due diligence on fund managersMake informed ethical decisions in complex situationsUnderstand current innovations and challenges in the alts space Ideal For:Finance professionals working with or advising on hedge funds, private equity, real assets, or institutional portfoliosCFA charterholders looking to specialize in alternativesAnyone seeking a globally respected credential in alternative investments

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