Portfolio Management Program

The Portfolio Management Program is a challenging, but rewarding, eight-day educational experience. The Program consists of three modules: a three-day Fixed Income Portfolio Management class, a three-day Equity Portfolio Management class, and a two-day Theory & Practice class. These modules blend traditional lectures, case studies, and site visits, and all delegates will receive a Texas Instruments BA II Plus calculator and a Netbook to contribute to their classroom experience.

In addition to top-quality instruction in class, NYIF is happy to enhance your New York City experience* outside of class as well. Delegates will attend a “Lunch & Learn” – a presentation by a leading industry practitioner with a catered buffet lunch. Delegates will receive a complimentary pass to the Museum of Modern Art, located adjacent to NYIF’s midtown headquarters, and will be invited to a special event one evening after class. The New York Institute of Finance brings you the very best in the classroom and shows you the best that New York City has to offer!

*Please note that events will vary slightly at our Chicago location, where delegates will be treated to some of the unique sights of the Windy City!

29-Feb-2012 -- 09-Mar-2012New YorkUSD$7575
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate

06-Jun-2012 -- 15-Jun-2012ChicagoUSD$7575
NY Institute of Finance - Chicago9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate

22-Aug-2012 -- 31-Aug-2012New YorkUSD$7575
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Various Instructors; ] Mon Tue Wed Thu Fri Level: Intermediate

CPE CREDITS
57.5
Junior portfolio managers, money managers, research analysts, client services staff, consultants, individual and institutional investors, private bankers and financial advisors, research staff members of pension boards and plan sponsors.
No advance preparation required.
Students will be able to:
  • Understand the analytics necessary to manage a portfolio
  • Correctly implement an assortment of fixed income strategies
  • Correctly implement an assortment of equity strategies
  • Understand the interrelationships between strategies
Financial calculator is required.
Day 1. Introduction: Overview of the Fixed Income Marketplace
The Capital Markets: The Big Five
  • Stocks and Bonds: How They Differ
  • A Brief History of Bonds
  • Size and Complexity of the World Bond Market

Bond Math

  • The Concept of Present Value
  • The Bond Price Equation
  • Three Types of Yield: Coupon, Current & Yield To Maturity (YTM)

How Safe Are Bonds?

  • Risks In Fixed Income Investing
  • Credit
  • Interest Rate
  • Reinvestment
  • Liquidity
  • Call
  • Are Treasury Securities risk-free?

A Dealer Market

  • Auction vs. Dealer Markets
  • How Bonds Are Traded
  • Primary & Secondary Markets
  • Issues of Transparency

Case: The Viaticus Fund

    Reading: Bonds: Risky, Arcane, But Essential

Day 2. The Participants: Issuers & Instruments
Treasuries
  • The Benchmark
  • Bills, Notes, Bonds
  • Their Purpose
  • How Issued

Corporates

  • Capital Structure: Equity vs. Debt
  • Conventional Debt
  • High Yield Securities:
  • Michael Millken and Drexel
  • Hybrids: Convertibles, Warrants, Debentures
  • Reading: Burgers & Bonds

Municipals

  • Why They Exist
  • Revenue & General Obligation
  • Tax Exempt Features
  • Video: The Concept of Public Good

Fixed Income Mutual Funds

  • Reading: The City of Skokie
  • Case: Using Bonds in a 401k
  • Film: The Trillion Dollar Bet

Securitized Products

  • Mortgage Backed Securities
  • Collateralized Mortgage Obligations
  • Asset Backed Securities

Day 3. The Investors: Institutions and Individuals
Constructing a Fixed Income Portfolio
  • Advantages for Individuals: Bonds vs. Bond Funds
  • Advantages for Institutions: Active vs. Passive Strategies

The Yield Curve

  • Why is it Important?
  • Its Shape
  • Theories
  • How Is It Used?

Bond Math II

  • Realized Compound Yield
  • Duration: What and Why?
  • Convexity: What Is It?
  • Dissecting a Zero Coupon Bond: Pricing Off the Curve

Some Strategies

  • Buy and Hold
  • Bullets and Barbells
  • Butterflies
  • Ladders
  • Immunization
  • Hedging

Types of Diversification

  • By Sector
  • By Quality
  • By Maturity or Duration

Bringing It All Together

  • The Portfolio Manager's Art
  • Importance of Asset Allocation
  • Funding Liabilities: Pension Fund Assumptions
  • Asset Liability Management (ALM)
  • The Balanced Fund Approach
  • Case: A Look at an Institutional Portfolio

Day 4. Equity Portfolio Management
Overview of the Capital Markets
  • Prominence of the US

The Roles of the Exchanges

    Auction vs. Dealer Markets

      Valuation Techniques

      • Importance of Earnings
      • The Quality of Earnings: A Closer Look
      • Financial Shenanigans: Playing Games with Numbers
      • Getting Behind the Numbers

      Free Cash Flow

        Dividend Discount Models

          Gordon Growth Model

            Psychology of the Market

            • Film: The Crash of 1929

Day 5. Stock Selection: Finding Value Behind the Numbers
A Look at the Financials
  • Balance Sheet
  • Income Statement
  • Cash Flows
  • Footnotes (often tell the story)

The Search for Hidden Assets

    The P/E Ratio and Beyond

      The Firm's Capital Structure

      • The Weighted Average Cost of Capital (WACC) 5.5

      Some Numbers to Know

      • Debt/Equity Ratio
      • Return on Equity
      • Return on Assets
      • Inventory Assumptions

      Role of the Analyst: Gatekeeper or Cheerleader

      • The Earnings Estimate
      • The Consensus
      • Conflicts of Interest

      The IPO

      • Timing is Everything
      • Film: Dot.con (When the Internet Bubble Burst)

Day 6. Equity Strategies: From Stock Picking to Portfolio Management
Mergers and Acquisitions
  • Role of the Investment Bank

Structuring an Equity Portfolio

    Use of Indexes

      Translating Information Into Investment Ideas

        Hedging with Options

          Short Selling

            Growth Strategies

              Value Strategies

                Blended Strategies

                  Issues of Corportate Governance

                  • Board Composition
                  • Independent Directors
                  • Proxy Voting
                  • Socially Responsive Investing

                  A Closer Look at Beta: Adjusting for Risk

                  • Derivation
                  • Systematic vs. Unsystematic Risk
                  • Diversification
                  • Film: Contemporary Investor Attitudes

Day 7. Balancing Risk and Reward
Measuring Risk and Return
  • Review of the Securities Market Line
  • Some Useful Statistics: Standard Deviation; R Squared; Correlation; Covariance

Modern Portfolio Theory: Advocates and Critics

  • History
  • Key Assumptions
  • Diversification vs.
  • Beta: Its Derivation and Limitations

The Capital Asset Pricing Model

  • An Application of Beta
  • A Nobel Prize Winner

Efficient Markets

  • The Theories
  • The Evidence

Efficient Frontiers

  • Balancing Risk and Reward

The Role of Hedge Funds

  • Speculators: Those who seek risk
  • Hedgers: Those who avoid risk

Day 8. Evaluating Performance
Measuring Performance
  • Concept of Risk Adjusted Performance
  • Sharpe Ratio
  • Treynor Ratio
  • Jensen Ratio

Style Management

  • Importance of Alpha
  • Manager's Style and Risk
  • Use of Indicies as Benchmarks
  • Style and Performance

Indexing

  • Strengths and Weaknesses

Evaluating Your Portfolio Manager

  • Appropriate Benchmarks
  • Peer Group Comparisons
  • Quantitative Measures

An In Depth Look at an Institutional Portfolio

  • Where the Rubber Meets the Road
  • Film: An Interview with Warren Buffett

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.