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Portfolio Management. Theory and Practice. Edition No. 1

  • Book

  • 720 Pages
  • April 2019
  • John Wiley and Sons Ltd
  • ID: 5226449

A career’s worth of portfolio management knowledge in one thorough, efficient guide

Portfolio Management is an authoritative guide for those who wish to manage money professionally. This invaluable resource presents effective portfolio management practices supported by their underlying theory, providing the tools and instruction required to meet investor objectives and deliver superior performance. Highlighting a practitioner’s view of portfolio management, this guide offers real-world perspective on investment processes, portfolio decision making, and the business of managing money for real clients. Real world examples and detailed test cases - supported by sophisticated Excel templates and true client situations - illustrate real investment scenarios and provide insight into the factors separating success from failure. The book is an ideal textbook for courses in advanced investments, portfolio management or applied capital markets finance. It is also a useful tool for practitioners who seek hands-on learning of advanced portfolio techniques.

Managing other people’s money is a challenging and ever-evolving business. Investment professionals must keep pace with the current market environment to effectively manage their client’s assets while students require a foundation built on the most relevant, up-to-date information and techniques. This invaluable resource allows readers to:

  • Learn and apply advanced multi-period portfolio methods to all major asset classes.
  • Design, test, and implement investment processes.
  • Win and keep client mandates.
  • Grasp the theoretical foundations of major investment tools

Teaching and learning aids include:

  • Easy-to-use Excel templates with immediately accessible tools.
  • Accessible PowerPoint slides, sample exam and quiz questions and sample syllabi
  • Video lectures

Proliferation of mathematics in economics, growing sophistication of investors, and rising competition in the industry requires advanced training of investment professionals. Portfolio Management provides expert guidance to this increasingly complex field, covering the important advancements in theory and intricacies of practice.

Table of Contents

About the Authors ix

Acknowledgments xi

Preface xiii

Chapter 1 Introduction 1

Chapter 2 Client Objectives for Diversified Portfolios 13

Chapter 3 Asset Allocation: The Mean - Variance Framework 59

Chapter 4 Asset Allocation Inputs 117

Chapter 5 Advanced Topics in Asset Allocation 161

Chapter 6 The Investment Management Process 219

Chapter 7 Introduction to Equity Portfolio Investing: The Investor’s View 255

Chapter 8 Equity Portfolio Construction 285

Chapter 9 Fixed-Income Management 323

Chapter 10 Global Investing 385

Chapter 11 Alternative Investment Classes 427

Chapter 12 Portfolio Management Through Time: Taxes and Transaction Costs 467

Chapter 13 Performance Measurement and Attribution 503

Chapter 14 Incentives, Ethics, and Policy 541

Chapter 15 Investor and Client Behavior 569

Chapter 16 Managing Client Relations 593

Sample Cases 617

Jerry W. 619

MSSI 625

McClain Capital 631

The Fairbanks Fund 639

Glossary 645

References 661

Index 671


Scott D. Stewart Christopher D. Piros Jeffrey C. Heisler