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Overview of the Alternative Investments Universe

I have applied to the CFA Level 2 exam, and I am now also considering applying to the CAIA program. Below are some pros and cons and interesting facts that I discovered doing my little research on the subject:
FACTS
(1) Number of chartholders:


Charted Financial Analyst (CFA):
approximately 78,000

Chartered Alternative Investment Analyst (CAIA):
over 3,000 
(Source: Wikipedia)


(2) Preparation required  

CFA
Minimum 250 hours per level 
Total: 750+ hours

CAIA
Level 1: 150-200 hours
Level 2: 200 or more hours
Total: 350-400+ hours
(Source: schweser.com)  


(3) Membership Annual Dues

CFA
US$225. In Japan, there are reportedly additional fees for the CFA Society of Japan membership, which bring the total amount to approximately $400.

CAIA
US$250.
(Sources: CFA website, CAIA website)


(4) Exam and Enrollment Fees

CFA
Program Enrollment: US$400*
Level 1 Exam Registration: $690*
Level 2 & 3 Exam Registration: $710*
* Fees vary depending on the date of application. There are three application deadlines, and the numbers here are for the second payment deadline. Also, Level 1 exam registration fee is different for 2009 and 2010. Details can be found here.
Program Enrollment: US$400

CAIA
Level 1 Exam Registration: US$1000
Level 2 Exam Registration: US$1000


PROS
(1) CFA
  • Widely recognized certification that has broad applications in asset management, investment banking, corporate finance and many other areas.
  • Broad range of topics covered
(2) CAIA
  • Fewer hours for preparation and only two levels to pass, as compared to three levels for CFA
  • Exams two times a year, so in the best case scenario, you can get your designation in one year
  • Pin-point focus on alternative investments, so no need to go trough financial statements analysis and the likes

CONS
(1) CFA
  • Really lot of preparation, a long-term commitment. Level 2 and Level 3 exams are only conducted once a year, so even if you know the curriculum very well, it takes several years to complete the program
(2) CAIA
  • Too narrow for anyone working with traditional investments


OTHER REMARKS
  • There is a considerable overlap between the two programs. For instance, CAIA refer the candidates to the CFA Code of Ethics. A lot of the Corporate Finance contents in CFA seem to be the foundation of the relevant material in CAIA. CFA Alternative Investments section provides brief overview of the asset classes consistent with CAIA terminology


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