| CODE | BKF5530 | ||||||||||||||||
| TITLE | Portfolio Management | ||||||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||||||
| MQF LEVEL | 7 | ||||||||||||||||
| ECTS CREDITS | 5 | ||||||||||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||||||||||
| DESCRIPTION | The objective of this study-unit is to teach the main valuation techniques used to estimate market values for equity securities. Another objective of this study-unit is to teach students how to apply investment knowledge in an applied portfolio management situation by learning for to select stocks. Part of the unit will also consist of studying stock selection principles followed by some of the most famous and successful investors such as Bejamin Graham, Warren Buffett, Joel Greenblatt, Louis Navellier, William O鈥橬eil and John C. Bogle amongst others. The study-unit also has an empirical component as students, working in groups, will have to form a hypothetical portfolio of stocks. The knowledge acquired can also be used in identifying M&A targets. An additional aim of this study-unit focuses on how structured products can be used by investors to access a large variety of underlying and risk/return profiles. Also, the unit will delve into the pricing and risk issues which need to be considered when investing and trading structured products. Study-Unit Aims: - To equip participants with techniques used to value stocks and thus select stocks to be included in a portfolio; - To equip participants with the ability to critically analyse stock selection principles followed by some of the most famous and successful investors, such as Benjamin Graham, Warren Buffett, Joel Greenblatt, Louis Navellier, William O鈥橬eil and John C. Bogle amongst others; - To equip participants with the ability to build hypothetical portfolio of stocks given a number of constraints; - To provide participants with the rationale underlying the use of structured products; - To provide participants with the ability of decomposing structured products into their base building blocks and thus price them in the financial markets; - To equip participants with the ability to integrate structured products into portfolios. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - demonstrate knowledge on how to select stocks, how to build structured products, how to identify M&A targets, how to form portfolio of stocks, how to analyse stocks; - critically identify the factors that are important in pricing stocks and following their valuation over time; - critically evaluate trading strategies to uncover value stocks that are applied by other investors, notably famous investors; - critically analyse portfolios of stocks to identify problems in the latter and identify mispriced structured financial products and devise trading strategies accordingly. 2. Skills: By the end of the study-unit the student will be able to: - use excel and other IT tools to help him/her select stocks and build portfolios of stocks; - use IT tools to structure financial products according to the needs/constraints of their clients; - identify M&A targets and value such stocks; - establish professional relations with clients and apply the regulatory framework concerning such relations, by notably finding out about some of their clients' characteristics which are needed in order to make investment decisions. Main Texts: - Best Practices for equity research analysts by James J. Valentine, McGraw Hill. - The Intelligent Investor by Benjamin Graham, Collins Business Essentials. - One up on Wall Street, by Peter Lynch with John Rothchild, Penguin. - The New Buffettology, by Mary Buffett & David Clark, Free Press Business. - The little book that beats the market, by Joel Greenblatt, Wiley. - The little book that makes you rich, by Louis Navellier, Wiley. -How to make money in stocks, by William J. O鈥橬eil, McGraw Hill. -The elements of investing, by Burton G. Malkiel and Charles D. Ellis, Wiley. -The little book of common sense investing, by John C. Bogle, Wiley. - Andreas Blumke, How to Invest in Structured Products, A Guide for Investors and Asser Managers , Wiley, 2009. - Paul Wilmott, Derivatives, The Theory and Practice of Financial Engineering, Wiley 2000. - John Hull, Options, Futures and Other Derivatives, Sixth Edition. Prentice-Hall, 2006. |
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| ADDITIONAL NOTES | Pre-requisite Study-unit: Equity markets BKF3050 | ||||||||||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Joseph Falzon |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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