CFA Level I · CFA Level I Exam · Alternative Investment Features, Methods, and Structures
Which of the following investments is most likely classified as a real asset within the alternative investment categories?
Timberland is most likely a real asset. Real assets are tangible holdings such as real estate, infrastructure and natural resources, and timberland is a natural resource. Leveraged buyout funds fall under private capital and long/short equity funds under hedge funds, so they are not real assets.
- ATimberlandCorrect
- BA leveraged buyout fund
- CA long/short equity hedge fund
Explanation
Real assets are tangible assets such as real estate, infrastructure, natural resources and timberland. A leveraged buyout fund is private capital and a long/short equity fund is a hedge fund strategy. Neither is a real asset category.
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