Portfolio Management

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:03/30/2020
  • Course Duration: 2 Day
  • Level: Intermediate
  • Prerequisites: Knowledge of CM
  • Method: Live & Virtual
  • Venue: MicroTek
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual


Portfolio Management has attracted renewed interest for various reasons. This interest includes increasing opportunities in high net worth client management due to growing global concentrations of wealth. Portfolio managers have been challenged by high market volatility, low or zero interest rates, traditional companies being disrupted by new companies, and increased regulations. Likewise, traditionally managed investments have ceded to indexing and alternative investments. Also, high touch has been increasingly replaced by robo advisors. Challenges to create portfolios that make optimal tradeoffs between return and risk, and meet client needs has resulted in trying new portfolio management construction techniques. These include the growing offerings of index products. Some are vanilla approaches, but some may contain high risk features that can prove very damaging. Finally, regulations are shifting into fiduciary considerations which also impact advisor compensation models.

Other challenges to portfolio construction involves modifications to asset classes. Over the long term, the total return of a diversified portfolio has been greatly enhanced from equity investments. However, should this be done on a company, industry, country, or some factor basis, such as value or growth?   Bonds have surprised investors with ZIRP/NIRP. To what extent is it worth chasing yield? What if inflation returns? What is the role of leveraged loans? Are Alternative Investments the solution? But which ones and what types in each class? These questions should continue to challenge portfolio creations for a range of investors, including high net worth and institutions

This two-day course already assumes that students are familiar with valuation and the workings of the capital markets. Class discussions will develop from this basic knowledge and examples and case examples will be discussed.


Who Should Attend

Portfolio managers, research analysts, intern candidates, client services staff, consultants, individual and institutional investors, private bankers and financial advisors, research staff members of pension boards and plan sponsors.

Prior Knowledge

Basic knowledge of the capital markets, statistics, and valuation methods.

Students will be able to:

  • Have a solid understanding in portfolio management inputs and construction
  • Understand the role of valuation models in portfolio creations
  • Understand portfolio construction from basic indexing to more complex models
  • Understand the role of traditional investments compare to alternative investments
  • Be able to understand methods that may differentiate performance results
  • Be able to understand and interpret the range of performance measurement and attribution measures that are currently used
  • Understand the changing trends in industry portfolio management techniques

John Palicka CFA CMT has generated a long-term top-ranking fund record with a high Alpha, managing billions. He dealt with major institutional clients and portfolio management consultants. He will guide the case analysis using not only standard textbook solutions found in leading MBA programs and asset management intern programs, but also incorporate actual savvy Street modifications.  Participants in the case study will examine controversial issues that an analyst may experience in the portfolio process. This is a rare opportunity to use theoretical knowledge and apply it practically to everyday investment situations under a proven investment manager.


Overview of the Capital Markets

  • Overview of Capital Markets and Trends
  • Role of Portfolio Management
  • Prominence of the US and other geographic areas
  • Investment Approaches: Active and passive and the new passive
  • Top down, bottoms up, life cycle, demographic, disruptive approaches
  • Traditional Stocks and Bonds, and Alternative Investment considerations
  • Long term investing and opportunistic trading
  • Discussion of historical returns
  • Discussion of Asset Management Structures, such as mutual funds, RIAs, SMAs
  • Key Players
  • High touch and robo
  • ETF, ETN, Smart Beta, leveraged ETFs

The Roles of Valuation Techniques

  • Importance of Earnings and their different measurement
  • Key Valuation Models for traditional assets of stocks and bonds
  • Alternative Investment valuations in commodities, real estate, PE, VC
  • Commodity back door plays and portfolio implications
  • Real Estate investment forms
  • PE, VC styles
  • DCF, Comparable, Exotic Approaches
  • Quant and Behavioral Issues
  • Psychology and Technical Analysis

Portfolio Creation

  • MPT inputs of return, correlations, standard deviations
  • Geometric, Arithmetic, SI-IRR
  • Efficient Frontier, Capital Asset Pricing Model, Optimal Portfolios
  • Expectations, forecasting, rear view
  • Normal versus crises
  • Black Swans, events
  • Constraints of liquidity, social, tax, utility risk profiles
  • Investor Utility Curves
  • Suitability, Fiduciary, Ethics, Regs
  • Calculating Risky Asset Allocations
  • Backward versus forward looking challenges
  • Indexing, 60/40 variations, Fama, BL, liability management, versus more exotic
  • Role of derivatives in hedging and speculation, shorting, leverage
  • FX affects and international considerations
  • Role of leverage
  • Transaction costs

Performance Measurement

  • Probability Distribution: Mean
  • Variance, Standard Deviation, Skewness, Kurtosis
  • Correlations, betas
  • The usual ratios of Sharpe, Treynor, Jensen, M^2
  • More exotic risk measures Sortino, Omega, Calmar
  • R-Squared, VARS, ANOVA Analysis
  • Stress testing and tails
  • Convergence
  • Regulations, ethics, and wealth management
  • Portfolio strategies
  • Fairness Opinions
  • Behavioral responses to result
  • Benchmarks, performance drift
  • Risk-Adjusted Returns
  • Attribution Analysis
  • Luck and Statistical Issues
  • Reverse Engineering
  • Fund Scandals
  • Traps of anchoring, disposition effect, greed, panic

Client Needs and Investment Process

  • NAV and Fair Pricing
  • Setting Objectives and Defining Time Horizons
  • Establishing Risk Tolerances
  • Manager selection process
  • Styles: Growth /Value, Size, Balance, Home/International
  • Newbies to Ultra High Net Worth
  • Institutions such as PERS, corporate pension trends
  • SWFs
  • Key Fund Features: Composition, Fee models, Expenses, Size, Tax, Liquidity, ESG
  • Fund sales channels, marketing approaches
  • Rebalancing

Portfolio Cases and Strategies

  • Discussing portfolios that best meet needs of various clients
  • Successful techniques and requirements


  • V. John Palicka CFA CMT  has over 30 years of experience in researching and managing money in global, emerging, and US small-cap stocks.  He is currently in his 27th year as President and Chief Portfolio Manager at Global Emerging Growth Capital (GEGC). GEGC provides three major financial services: asset management, corporate finance, and knowledge consulting …
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