Best Alternative Investment Books

Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM
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List of Top 10 Alternate Investment Books

Alternative investmentsAlternative InvestmentsAlternative investments refer to investments made in assets classified as non-traditional investment vehicles.read more represent a wide range of non-traditional investment assets, including real estate, commodities like gold and oil, hedge funds, equity-indexed funds, structured investment products, and other exotic investment instruments. To help study these alternatives, we have a list of the top 10 such alternative investment books, which are as follows:

  1. The Little Book of Alternative Investments ( Get this book )
  2. The Only Guide to Alternative Investments You’ll Ever Need ( Get this book )
  3. The Alternative Answer ( Get this book )
  4. Alternative Investments: CAIA Level II (Caia Knowledge) ( Get this book )
  5. Alternative Investments: Instruments, Performance, Benchmarks, and Strategies ( Get this book )
  6. How to Make Money in Alternative Investments ( Get this book )
  7. The Investor’s Guidebook to Alternative Investments ( Get this book )
  8. The Ultimate Beginner’s Guide to Real Estate Investing ( Get this book )
  9. Understanding Alternative Investments ( Get this book )
Best Alternative Investment Books

Let us discuss each alternative investment book in detail, along with its key takeaways and reviews.

 #1 – The Little Book of Alternative Investments:

Reaping the rewards by Daring to be Different by Ben Stein  (Author) and Phil DeMuth  (Author).

The Little Book of Alternative Investments: Reaping Rewards by Daring to be Different

Alternative Investment Book Review

A 60/40 stock-bond portfolio largely dominates conventional investment thinking. Still, there are many viable alternatives if only one is willing to use them. This work discusses several alternative investment vehicles that can not only help average investors diversify their portfolios but also enhance their returns by gaining a better understanding of how these alternative investments function. Some key alternative assets covered in this work include gold, hedge funds, hedge-like mutual funds, and even more exotic optionsExotic OptionsExotic options, as the name suggests, are more complex variations of the simple vanilla options, in terms of trigger points, payoff determination, expiry, underlying assets and other such features. They are designed to suit to the needs of the partaking investors and therefore sell through the Over-the-Counter (OTC) market.read more like replicants, 100/30s, and buy/write funds, among others. Going a step further, the authors have outlined some of the most effective strategies for investing and managing these non-traditional assets, along with insights on how to identify the right kind of investment vehicles in keeping with the individual needs and preferences of investors.

Key Takeaways from this Top Alternative Investment Book

Recognizing how average investors can get stuck with traditional forms of investment and 60/40 stock-bond portfolios, this book offers a peek into the brave new world of investments through the window of alternative investments. The authors have done an excellent job of introducing alternative investments and strategies in an easy-to-understand manner and helping identify good investment vehicles that suit individual investor needs. A complete guide for newcomers to this unique class of investments.

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#2 – The Only Guide to Alternative Investments You’ll Ever Need:

The Good, the Flawed, the Bad, and the Ugly by Larry E. Swedroe  (Author), Jared Kizer  (Author)

The Only Guide to Alternative Investments You'll Ever Need: The Good, the Flawed, the Bad, and the Ugly

Alternative Investment Book Review

An excellent alternative investment book outlines the advantages of exploring alternative avenues of investment instead of relying only on stocks, bonds, and fixed deposits, among other traditional forms of investments. An average investor can learn the basics of these unconventional investment options with the help of this work and go ahead to invest in real estate. Inflation-protected securities, commodities, stable-value funds, hedge funds, leveraged buyouts, Leveraged Buyouts, LBO (Leveraged Buyout) analysis helps in determining the maximum value that a financial buyer could pay for the target company and the amount of debt that needs to be raised along with financial considerations like the present and future free cash flows of the target company, equity investors required hurdle rates and interest rates, financing structure and banking agreements that lenders require.read more and structured investment products. Most importantly, the authors not only introduce readers to these lesser-explored avenues but also provide an insight into the pros and cons of these investments along with useful information on how they work and effective techniques of managing risk and enhancing returns from these instruments. Overall, excellent introductory work on non-traditional asset classes and how to invest in them for better risk-adjusted returnsRisk-adjusted ReturnsRisk-adjusted return is a strategy for measuring and analyzing investment returns in which financial, market, credit, and operational risks are evaluated and adjusted so that an individual may decide whether the investment is worthwhile given all of the risks to the capital invested.read more.

Key Takeaways from this Best Alternative Investment Book

A valuable alternative investment book on some of the most popular non-traditional investment avenues explored by investors who have yet to venture beyond conventional forms of investments, including stocks and bonds. The authors have done a brilliant job of demonstrating exactly how it would be worth it to invest in these alternatives available in the market. This is a must-read for anyone willing to learn more about unconventional investment instruments to diversify the existing portfolio of investments.

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#3 – The Alternative Answer:

The Nontraditional Investments That Drive the World’s Best-Performing Portfolios by Bob Rice  (Author)

The Alternative Answer: The Nontraditional Investments That Drive the World's Best-Performing Portfolios

Alternative Investment Book Review

Bob Rice takes his readers on a journey to explore alternative investments that can be utilized with many advantages to diversifying not only traditional investment portfolios but also enhance long-term returns and help manage risk better. This work is intended for average investors as an introduction to alternative investment avenues, including MLPs, hedge funds, managed futures strategyManaged Futures StrategyManaged futures strategy is a component of an optional futures strategy in which funds are managed on a managed futures account by an external expert who uses futures contracts in their overall investments to manage the funds of the owners, thereby reducing various risks of the business entity.read more, infrastructure funds, and more. One typical example is investing in gold and oil to protect against inflation and market volatility, which stocks and bonds are subject to. This alternative investment book discusses at length how it would be important to understand the individual needs of an investor and tweak the portfolio in keeping with specific needs, utilizing several alternative investments and making use of a wide range of unconventional investment strategies as well. This book is an essential guide on alternative investments and strategies that help create and manage a portfolio much better than those that rely solely on traditional forms of investments.

Key Takeaways from this Top Alternative Investment Book

An excellent alternative investment book on the world of alternative investments holds a great deal of potential for average investors who could diversify their portfolios with more of a strategic approach aimed at enhancing returns while looking for protection against inflation and minimizing risk. An ideal companion for anyone interested in exploring some of the most sought-after alternative investments and strategies to help achieve loss avoidance and protection against inflation and inherent investment risks.

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#4 – Alternative Investments: CAIA Level II (Caia Knowledge)

by CAIA Association (Author), Hossein Kazemi (Author), Keith H. Black (Author), Donald R. Chambers (Author)

Alternative Investments: CAIA Level II (Caia Knowledge)

Alternative Investment Book Review

This alternative investment book is for Level II students of CAIA (Chartered Alternative Investment AnalystChartered Alternative Investment AnalystThere are two levels to the CFA® CAIA exam. Professional Standards and Ethics, as well as an introduction to alternative investments, are covered in Level I, while alternative investments and other integrated topics are covered in Level II.read more), which offers a detailed insight into the methods and techniques adopted for making and managing alternative investments. To understand work better, it would be important to note that they introduced students to various alternative investments and strategies employed to manage them efficiently at Level I. This Level II work focuses on applying tools and techniques to efficiently manage alternative investments, enhancing their utility for students, professionals, and investors. Some of the concepts dealt with at length here include advanced portfolio structuring and optimizationPortfolio Structuring And OptimizationPortfolio optimization refers to the strategic process of making improvements or positive changes to the investor's portfolio containing various assets. The Sharpe ratio helps to analyze the returns from an optimal portfolio.read more strategies, evaluating and managing the element of risk, and acquiring a good grasp of how alternative assets and investments behave. A thorough guide on developing and managing portfolios with alternative assets as an essential component of investments.

Key Takeaways from this Best Alternative Investment Book

Academic work on developing and managing multi-asset portfolios with the help of a wide range of alternative assets while focusing on applying useful tools and techniques for the purpose. A well-structured and, to some extent, more advanced work on the subject meant to double up as a textbook for CAIA Level II students, professionals, and investors.

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#5 – Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

by H. Kent Baker  (Author), Greg Filbeck (Author)

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

Alternative Investment Book Review

A broad-based treatise on alternative investments and how to utilize them for strategic portfolio diversificationPortfolio DiversificationPortfolio diversification refers to the practice of investing in a different assets in order to maximize returns while minimizing risk. This way, the risk is kept to a minimal while the investor accumulates many assets. Investment diversification leads to a healthy portfolio.read more with greater protection from inflation, better risk management, and higher returns in the longer term. The author proposes that achieving a wide range of investment objectives meeting an investor’s individual needs and preferences becomes much more of a real possibility with the help of strategically employed alternative investments. It introduces readers to various alternative asset classes, insights into how they function, and the best way to use them to construct a balanced and customized portfolio. This work is valuable because it discusses some of the most popular alternative asset classes including real estate, commodities, hedge funds, private equityPrivate EquityPrivate equity (PE) refers to a financing approach where companies acquire funds from firms or accredited investors instead of stock marketsread more, and managed futures, along with the latest practices, research, and strategies in the field of alternative investments. A rare work that combines a highly academic approach with a thoroughly practical one, adding to its relevance for students, professionals, and investors alike.

Key Takeaways from this Top Alternative Investment Book

An ideal book on alternative investments which introduces investors to various alternative asset classesAsset ClassesAssets are classified into various classes based on their type, purpose, or the basis of return or markets. Fixed assets, equity (equity investments, equity-linked savings schemes), real estate, commodities (gold, silver, bronze), cash and cash equivalents, derivatives (equity, bonds, debt), and alternative investments such as hedge funds and bitcoins are examples.read more along with a detailed view of their pros and cons to help make an informed choice while diversifying portfolios. A complete overview of historical performance, benchmarks, and strategies employed for these alternative assets make it an academic work with a high level of practical utility for investors.

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#6 – How to Make Money in Alternative Investments

by Hubert Bromma (Author), Lisa Moren Bromma (Author)

How to Make Money in Alternative Investments

Alternative Investment Book Review

With an aim at widening the understanding of investment instruments available to investors, this alternative investment book introduces several alternative assets that one can invest in with an advantage. The authors have discussed at length how average investors can explore some of the most common alternatives, including real estate, precious metals, natural resources, private lending, and ‘green’ investing, among other things. They argue with conviction that alternative assets present a viable option for managing market risks inherentRisks InherentInherent Risk is the probability of a defect in the financial statement due to error, omission or misstatement identified during a financial audit. Such a risk arises because of certain factors which are beyond the internal control of the organization.read more in traditional assets like stocks and bonds and building profits in the longer term. Dealing with nearly 40 such alternative assets, authors provide useful, practical guidance on identifying strategic investment opportunities and capitalizing on them. A down-to-earth approach to investing in alternative assets for portfolio diversification, inflation-protected returns, and a higher level of risk management.

Key Takeaways from this Best Alternative Investment Book

Break the shackles of traditional investing and get ready to venture beyond the typical stock/bond portfolios and explore the jungle of alternative investments with seemingly unlimited possibilities. This book is a highly practical guide to investing in nearly 40 non-traditional asset classes that will set you on your path to becoming a better investor who knows how to manage risk and beat inflation. It enhances returns with the help of alternative asset investment and the art of strategic managementStrategic ManagementStrategic management in a business refers to the planning, management, utilization of resources to define and achieve objectives efficiently. read more.

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#7 – The Investor’s Guidebook to Alternative Investments:

The Role of Alternative Investments in Portfolio Design Kindle Edition

by Stuart R. Veale  (Author)  

The Investor's Guidebook to Alternative Investments: The Role of Alternative Investments in Portfolio Design

Alternative Investment Book Review

A compact guide on alternative investments, their fundamentals, pros and cons, and how one can utilize them for portfolio structuring and diversification. The author discusses leading investment instruments and commonly employed strategies for investors to understand several practical aspects of alternative investments. Readers would learn how state-of-the-art pricing models can be developed from scratch using basic principles, and one can simplify the whole process with relative ease. Based on the fundamental idea that an investor is as good as his clarity on investments, this alternative investment book perfectly fits the bill of a complete practical guide.

Key Takeaways from this Top Alternative Investment Book

A concise guide on alternative investments that drives key points home with its straightforward approach to the subject. Without wasting much time, the author lays bare the fundamentals of alternative asset investment and strategies and deals with more practical aspects of these non-traditional investments. This book is a must-read for every investor willing to learn more about alternative investments and how they can help develop a balanced portfolio.

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#8 – The Ultimate Beginner’s Guide to Real Estate Investing

by Joshua Dorkin  (Author), Brandon Turner  (Author)

[099758470X] [9780997584707] How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started-Paperback

Alternative Investment Book Review

This building blocks guide provides a unique insight into every aspect of real estate investments beginning with the basics of this antique market and addressing the oft-neglected topic of real estate niches that plays a significant role in the time and scale of capital appreciationCapital AppreciationCapital appreciation refers to an increase in the market value of assets relative to their purchase price over a specified time period. Stocks, land, buildings, fixed assets, and other types of owned property are examples of assets.read more. As one of the most traditional fixed assets, the popular perception is that it can only yield desired returns in the long term. Still, the author addresses all these aspects outlining how a strategic approach can help leverage some of the finest gains from this conventional market, usually taken for granted for its worth. It is a unique treatise of its kind that offers precise and useful information on the world of real estate investments for those who have been wary of taking the plunge.

Key Takeaways from this Best Alternative Investment Book

Truly an ultimate beginner’s guide to alternative investment, it lays bare the intricacies of real estate investing for newcomers and experienced investors in this traditional market. The author goes beyond the conventional ideas associated with the real estate market to help investors explore their full potential to their advantage. A must-have for anyone planning to wet their feet in this conventional yet often misunderstood market by investors.

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#9 – Understanding Alternative Investments

Creating Diversified Portfolios that Ride the Wave of Investment Success by S. Walker (Author)

Understanding Alternative Investments: Creating Diversified Portfolios that Ride the Wave of Investment Success

Alternative Investment Book Review

A highly focused alternative investment book intended to assist investors in gaining a newfound understanding of alternative investments and making their best use possible for diversifying portfolios and enhancing returns. Going beyond the usual humdrum, the author adopts an innovative approach, putting into practice new risk measurements for structuring portfolios in such a manner that would help stack odds in one’s favor. Investors have much to learn from this work, which offers a different viewpoint on alternative investments and sets them on the path to success with well-defined innovative portfolio structuring strategies.

Key Takeaways from this Top Alternative Investment Book

If you are wondering how to structure portfolios better with the help of alternative investments, this alternative investment book lays down the path for you. Keeping an eye on managing market risksMarket RisksMarket risk is the risk that an investor faces due to the decrease in the market value of a financial product that affects the whole market and is not limited to a particular economic commodity. It is often called systematic risk.read more, neutralizing the impact of inflation, and accruing greater returns, the author elaborates on an innovative approach using new risk measurements for structuring and managing portfolios with a difference.

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#10 – 5 Best Long Term Alternative Investments Not in the Stock Market that You Can Enjoy and Live Off of for a Lifetime

by Allan Scheeringa (Author)

5 Best Long Term Alternative Investments Not in the Stock Market that You Can Enjoy and Live Off of for a Lifetime

Alternative Investment Book Review

This truly off-the-shelf approach to alternative investing goes further than most other works on this topic and explores some hidden gems that mainstream investors have ignored for too long. The author discusses some of the original forms of alternative assets, including fine art, diamonds, tree groves (yes, we are talking real trees), oil exploration, and solar power, which present an untapped potential unmatched by conventional markets. This alternative investment book shows you how you can explore one or more of these options with a little ingenuity, with no real need for expertise in the area, and prospects of substantial returns with a lower level of risk than most conventional investment instruments. A creative approach to sensible alternative investment that dares to go beyond the charted territories of traditional and not-so-traditional financial instruments traded in the market to find an original flavor of alternatives for the willing investors.

Key Takeaways from this Best Alternative Investment Book

Suppose you are tired of traditional investment avenues, including stocks, bonds, or even exotic financial instrumentsFinancial InstrumentsFinancial instruments are certain contracts or documents that act as financial assets such as debentures and bonds, receivables, cash deposits, bank balances, swaps, cap, futures, shares, bills of exchange, forwards, FRA or forward rate agreement, etc. to one organization and as a liability to another organization and are solely taken into use for trading purposes.read more when it comes to ensuring healthy returns. This alternative investment book comes like fresh air, ensuring originality left in the game. The author builds up a strong case for investing in solar power in an increasingly power-hungry world, oil for obvious reasons, investing in a grove of trees, buying diamonds, and fine art as some of the most potent yet little-explored avenues by traditionalists. So, if you believe you have it in you, this book is for you to stand apart from the herd and make your moves.

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