Introduction to Portfolio Management
Boston - March 8 (Location) NYC - June 14 (Location)
Registration Fee: US$995.00 Register Instructor
Many classes sell out; we suggest registering at least one week in advance to ensure availability.
Beginner Level, 7 CPE Credits
Instructor: Kenneth Kapner
Hours: 9:00 am - 5:00 pm; Registration/Breakfast begins at 8:30 am
The last few years have witnessed unprecedented volatility in the capital markets. Active managers have switched between risk on and risk off trades. As the markets continue to evolve, a thorough understanding of the basics is essential. This hands-on course examines the investment process, risk and return and strategies to increase return. Differences between asset managers and institutional fund managers are explored. The course wraps up by analyzing metrics on the portfolio’s performance.
Objectives
By the end of the course, the participant will be able to:
- Describe terminology used in portfolio management
- Evaluate the investment process
- Explain the tradeoff between risk and return
- Compare and contrast different investment funds, such as mutual funds and pension funds
- Apply different strategies in both equity and fixed income markets
- Evaluate the results of portfolio returns
Session 1: Portfolio Management
By the end of this session the course participant will be able to:
- Describe the portfolio management process including:
- Investment policy
- Objectives and constraints
- Capital market expectations
- Asset allocation
- Implementation: Active vs. Passive management
- Performance measurement
Session 2: Risk and Return
By the end of this session the course participant will be able to:
- Describe the relationship between risk and return
- Define how risk is measured using standard deviation
- Explain the Security Market Line
- Discuss the risk free rate and risk premium
- Discuss the Capital Asset Pricing Model (CAPM)
- Describe beta, alpha and R2
- Explain the difference between arithmetic average and geometric average rates of return
- Describe correlation and its use in portfolio management
Session 3: Active vs. Passive Management
By the end of this session the course participant will be able to:
- Interpret passive strategies
- Indexing
- Buy and hold
- Identify global and domestic benchmarks
- Analyze active strategies including:
- Relative value analysis
- Total return analysis
- Foreign currency exposure
- Analyze different yield curve environments and discuss active strategies to match the specific forecast
Session 4: Performance Evaluation
By the end of this session the course participant will be able to:
- Explain and analyze performance attribution including allocation, selection and their interaction
- Compare and explain tracking error and information ratio
- Describe and analyze risk adjusted returns including:
- Sharpe ratio
- Treynor measure
- Jensen’s measure (alpha)