Portfolio Management for the Buy-side

2 Day Workshop
(Workshop is not being offered at this time)

Qualifies for Continuing Education Credits:

• NASBA CPE - 19.2
• CFA CE - 16
• ACCA CPD

Introduction

This two day workshop offers the essentials of portfolio management. It will cover the major steps of the portfolio management process, including the investment policy statement, the effects of diversification for both individual and institutional investors, special considerations for equity and fixed income portfolios. The workshop presents the classical and well-established techniques as well as most recent innovations in portfolio management in a creative, practical, and straightforward manner. The objective is to familiarize those with a limited exposure to portfolio management with practical applications as well as those who in their work interact with portfolio managers on a daily basis.  Sell-side risk managers interested in exploring the considerations buy-side risk managers have would also benefit from the workshop.  Case studies and interactive exercises reinforce the material.

Moreover, throughout the workshop, Excel-based modeling will guide understanding through practical applications. 

Workshop Delivery

The workshop allows building applications, solving mini-cases, and discussion that will cement understanding in all the participants.

Who Should Attend?

This workshop will benefit all those who have not had a direct exposure to portfolio management considerations previously, but now have come into a position where these are integral part of their responsibilities.  The workshop will also benefit those who in their work interact with portfolio managers on a daily basis.  Finally, sell-side risk managers interested in exploring the considerations buy-side risk managers have would also benefit from the workshop. 

Content

Portfolio Management Strategies

• The objectives and constraints of individual investors
• The Investment Policy Statement
• The Investment Policy Statement,  investment decisions, security selection and portfolio construction
• Tax considerations in investment

Equity Portfolio Management

• The concepts and techniques of passive and active portfolio management
• Equity and stock index options in portfolio management
• Concepts and techniques of portfolio insurance
• Calculation and interpretation of several measures of portfolio performance

Hedging and Hedging Strategies

• Various option trading strategies used in equity portfolios, including strategies for income generation, put-call parity, and delta hedging
• Bonds with option features
• Warrants and rights
• Using futures for hedging
• Using swaps in equity portfolio management
• Tax considerations of options and futures

Fixed Income Portfolio Management

• Yield to maturity and the term structure of interest rates
• Bond pricing and the volatility of bond prices
• Factors affecting bond yields
• Duration and convexity, and managing fixed-income portfolios
• Passive and active bond portfolio management.
• Using interest rate futures in bond portfolio management\

Investment Timing

• Changes in the business cycle and stock price performance
• Changes in interest rates and the relationship between changes and business cycles
• Various methods of business cycle forecasting
• Perils of return chasing
• Efficient markets and their implications on investments and asset management

Performance Evaluation

• Beta, security market line, the capital asset pricing model
• Treynor measure, the Sharpe measure, and Jensen's alpha with its extensions
• Tracking error, the information ratio, and the Sortino ratio
• Arbitrage and empirical multifactor models
• Explicit and implicit factor methods for determining factors in multifactor models
• Categories of multifactor models, portfolio risk analysis, and multifactor performance models
• Returns-based style analysis models and portfolio-based style analysis

Global Diversification

• Arguments for global diversification
• Alternatives for global investment – ADR's, developed and emerging markets
• Costs and benefits of passive and active approaches to investing internationally
• The influence of exchange rate fluctuations on returns from international portfolios
• Hedging of currency exposure using futures in international investments

Portfolio Monitoring and Rebalancing

• Portfolio monitoring, rebalancing, and Realignment
• Rebalancing portfolios
• Factors which cause portfolios to require rebalancing
• The process of rebalancing portfolios
• Circumstances which signal the need to rebalance

Hedge Fund and Hedge Fund Strategies

• Alpha and beta
• Hedge fund strategies, Equity long/short, market-neutral, pair trading, market timing , short-selling, event-driven, distressed securities, Regulation D, global macro
• Arbitrage strategies, convertible, fixed-income, volatility, capital structure, merger
• Sources of potential returns and risk exposures
• Benchmarking alpha returns
• Hedge fund indexes
• Funds of Hedge Funds