Buy-Side Institutions in Alternative Investments
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Questions and Answers

What is the primary function of the buy side in the investment market?

  • Managing and buying large quantities of securities (correct)
  • Providing financial advice to individuals
  • Promoting financial literacy among employees
  • Selling securities in bulk

Which entities are mentioned as pivotal for the financial well-being of their employees through investments like 401(k)s?

  • Institutional Allocators and Plan Sponsors
  • Asset Owners and Asset Managers
  • Foundations and Endowments
  • Plan Sponsors and Corporations (correct)

Why are defined benefit plans notably active in the realm of alternative investments?

  • For minimizing investment risks for employees (correct)
  • To encourage employees to bear investment risks
  • Because they emphasize long-term investment outlook
  • Due to their focus on short-term gains

What distinguishes Foundations from Endowments in their investment activities?

<p>Principal preservation alongside specific goals (A)</p> Signup and view all the answers

Why are Foundations and Endowments significant in the alternative investment sphere?

<p>Their long-term investment outlook and philanthropic endeavors (B)</p> Signup and view all the answers

What is the primary role of family offices?

<p>Managing substantial private wealth for ultra-high-net-worth individuals (B)</p> Signup and view all the answers

Which investment structure is favored for many alternative investments due to its tax advantages?

<p>Private Limited Partnerships (PLPs) (D)</p> Signup and view all the answers

What is the primary goal of Sovereign Wealth Funds?

<p>Securing financial stability for future generations (B)</p> Signup and view all the answers

Which investment structure combines the liquidity of publicly traded companies with the tax efficiency of limited partnerships?

<p>Master Limited Partnerships (MLPs) (C)</p> Signup and view all the answers

What is a key feature of the incentive-based compensation models used in Private Investment Pools?

<p>Aligning the interests of managers with those of the investors (D)</p> Signup and view all the answers

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