Essentials of Portfolio Management

The risks and rewards of running a stock portfolio should always be seen in a historical context. It is important never to mistake bull market for brains - a lesson investors have recently relearned after the spectacular performance of equities in the late 90s. From dividend discount models to corporate governance, this course focuses on stock selection for the long term. Attention is paid to investment styles such as growth vs. value; small cap vs. large cap, as well as to traditional valuation techniques that emphasize tangible earnings and real cash flow.

Day 3 will use a realistic case study of a publicly traded company, with a planned field visit. John Palicka has generated a top-ranking fund record and he will guide the case analysis using actual Street techniques and the demands of intern programs of major investment firms. Participants in the case study will examine controversial issues that an analyst may experience on the job. This is a rare opportunity to use theoretical knowledge and apply it practically to everyday investment situations under a proven investment manager. Your decision will require an eventual Buy/Hold/Sell decision on a stock and your strategy in managing a portfolio.

No sessions currently available. Contact client services to get the next available date.
Portfolio 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:
  • Gain insight into the investment philosophies of giants such as Peter Lynch and Warren Buffett and other prominent investors
  • Develop hands-on strategies for stock selection and equity valuation
  • Apply appropriate performance and risk control measures to portfolio assessment
Financial calculator required. Texas Instruments BA II Plus recommended.
"One strength of this course is its practical case studies"
  • Portfolio Management - Theory & Practice
  • Portfolio Management Suite
  • Stock Investing for Professionals
  • Advanced Corporate Finance
  • Fusion Analysis - Day/Evening
    • Please note:
    Portfolio Management Theory and Practice is a good follow-up course. You may wish to consider the 8-day suite which covers this course, Fixed Income and Portfolio Management Theory and Practice. If you cannot attend the full 8-day suite, you may consider taking Equity Portfolio Management at various times throughout the year when it is offered.
    Day 1: Setting the Stage: Equities and the Capital Markets

    Overview of the Capital Markets

    • Prominence of the US and other geographic areas

    The Roles of Valuation Techniques

    • Importance of Earnings
    • Key Valuation Models
    • Cash Flow Analysis. GAAP, Non-GAAP, Free Cash Flows for the Firm and Equity
    • Quant and Behavioral Issues
    • Psychology and Technical Analysis

    Day 2. Stock Selection: Finding Value Behind the Numbers

    A Look at the Financials

    • Balance Sheet
    • Income Statement
    • The Quality of Earnings: A Closer Look
    • Financial Shenanigans: Playing Games with Numbers
    • Cash Flows
    • Footnotes
    • Regulations and Analysts
    • Peer Group Analysis and Key Ratios
    • Growth/Value Considerations
    • Market Cap Size Considerations
    • Fairness Opinions

    The Search for Hidden Assets

      The Firms Capital Structure

      • The Weighted Average Cost of Capital (WACC)
      • Challenges of Capital Risk determinations
      • Alternatives to CAPM
      • Efficient Market Considerations

        Role of the Analyst: Gatekeeper or Cheerleader

        • The Earnings Estimate
        • The Consensus
        • Conflicts of Interest
        • Quality Analyst Traits

    Day 3. Company Case Studies to Determine Valuation and Buy/Sell Decision as used on the Street

    • Role of the Investment Bank
    • Trading
    • Index Considerations
    • Portfolio Structurings
    • Career Advice
    Knowledge from Day 1 and 2 will be used in a practical example of a case study led by John Palicka's successful fund experience. Students will be required to evaluate a company and make portfolio decisions.

    Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

    Lunch included for all students taking day classes.