CAIA Level I case studies
CAIA Level I · Put your knowledge to work in context.
The CAIA Charter is a professional credential from the Chartered Alternative Investment Analyst Association, which describes itself as "the global center for those driving capital innovation." The Association frames the Charter around specialized knowledge of alternatives, portfolio construction, and the evolving ways capital is allocated, so that holders can connect ideas across strategies, structures, and disciplines. It is aimed at professionals across 100+ countries, industries, and roles, and the site maintains a separate pathway page for CFA charterholders as well as academic partnerships with universities. The CAIA Level I case studies are 5 cases and about 2,130 words.
1Performance Marketing and an Undisclosed Personal Holding
Priya is a CAIA charterholder and investment analyst at a fund-of-funds. She is completing a due-diligence questionnaire for a 150 million allocation to a hedge fund.
433 words, about 2 min2Endowment Liquidity, Unfunded Commitments, and a New Private Fund
An 800 million endowment has a 5% annual spending policy ( 40 million). Its private equity and private debt portfolio has 200 million NAV and 100 million unfunded commitments.
404 words, about 2 min3Strategy Drift at a Market-Neutral Hedge Fund
Northbridge Capital runs a $1.2 billion hedge fund marketed as equity market-neutral. Its 3-year track record shows 10.8% annualized return, 6.0% volatility, and a Sharpe ratio of 1.8.
421 words, about 2 min4Private Equity IRR, Subscription Lines, and a Continuation Fund
Fund III, a 2016-vintage buyout fund, reports a 24% net IRR. It has called 100 million, distributed 140 million, and holds 60 million NAV, so TVPI is 2.0x and DPI is 1.4x.
440 words, about 2 min5Autocallable Note for a Client Who Wants Safe Income
A 70-year-old client with a $900,000 portfolio and an 18-month liquidity need is offered a 3-year autocallable note issued by an A- rated bank. The note pays an 8% annual coupon if the underlying index is at or above its initial level on a quarterly observation; it autocalls at 100% after six months.
432 words, about 2 min