Dr John Cadle
This module deals with the management of portfolios. Asset allocation strategies and optimization are discussed. Market efficiency and its implications for portfolio management are discussed in terms of active, passive and core–satellite management are discussed. Behavioural finance is also reviewed. Aspects of portfolio building and monitoring are reviewed and the role of currency management discussed. Various methods for evaluating the performance of portfolios are reviewed and illustrated. Major issues relating to hedge funds and various hedge fund strategies are reviewed. The management of bond portfolios is covered as are the uses of derivatives to modify allocations and portfolio exposures.
At the end of the course students should be able to:
- Discuss asset allocation models.
- Discuss the strengths and weaknesses of active and passive management.
- Discuss selected aspects of behavioural finance.
- Discuss the techniques of managing bond portfolios.
- Illustrate how allocations and return/risk characteristics of a portfolio can be changed through the use of derivatives.
- Discuss the characteristics, risks and strategies of selected hedge funds.
- Discuss performance evaluation and attribution analysis.