Commodity Investment Features Source of Value Unlike traditional investments such as stocks and bonds, commodities do not generate cash flows. Instead, they often incur costs, which are typically associated with the transportation, storage, and insurance of the physical commodities. For…

Natural resources are essential production inputs that play a crucial role in the economy and daily life. These resources can be categorized into three main types: Plants and animals are also known as soft commodities (grown over a period of time)….

The nature of the underlying infrastructure investment, its developmental phase, geographical location, and organizational structure all contribute to determining the expected risk and returns of infrastructure investments. Infrastructure investments exhibit varying levels of risk depending on the stage of development….

Infrastructure investments serve a societal role by promoting widespread economic, technological, and social development objectives. These investments are concerned with the allocation of resources to tangible, capital-intensive, and enduring assets designed for public consumption. These assets include: Airports, Healthcare facilities,…

Source of Returns in Real Estate Investments Real estate returns primarily stem from two key avenues: generating rental income and the possibility of property value appreciation. For example, consider a real estate investor who acquires a commercial property and leases…

Investing in real estate can be made in either residential or commercial real estate. For instance, an individual might purchase a home not just for personal use but also as an investment, expecting the property value to increase over time….

Hedge funds, as private investment entities, are distinguished by their distinctive investment strategy. They employ a blend of traditional debt and equity tools, leverage, derivatives, short selling, and various tactics to produce and amplify returns. The primary aim of a…

Recap: Hedge Funds A hedge fund is typically structured as a private investment partnership. This can be either onshore, like in the United States, or in a tax-advantaged offshore location, such as the Cayman Islands. The offering of the hedge…

Hedge funds function as investment vehicles designed to minimize market exposure and returns derived from beta, emphasizing the generation of idiosyncratic returns. The primary source of excess return in hedge funds comes from exploiting market inefficiencies, which could be fleeting,…

Distributed Ledger Technology (DLT) represents a technology with the potential to revolutionize financial services and record-keeping practices. Built upon a distributed ledger, a database that can be shared across an extensive network of entities, DLT networks are being explored to…