Asset and Portfolio Management Principles

Learn about key principles in Asset Management and portfolio construction

A cosmic imager of a galaxy with billions of stars and vast clouds of gas and dust

A one-day asset and portfolio management training

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Exploring Asset Management Principles and Market Dynamics

Introduction to Asset Management

Objective of Asset Management (AM) / Portfolio Management (PM):
- Wealth Preservation & Growth
- Diversification
- Liquidity Management
Asset management training explores the Risk/Reward Paradigm in Investment Strategies:
- Balancing Act: Understanding the trade-off between risk and potential returns
- Understanding the key factors
  - Risk tolerance
  - Risk capacity
  - Time horizon and objectives
  - Knowledge and experience

Investment Considerations

Significance of Investment Horizon and Risk Profile:
- Long-Term vs Short-Term goals: Aligning investment strategies with time horizons
Analysing Market Analogues - case studies of successes and failures:
- Successes
  - Bridgewater Associates
  - Renaissance Technologies
- Failures
  - Long-Term Capital Management
  - Global Financial Crisis (Various, incl. Bear Stearns Hedge Funds)
  - Melvin Capital

Asset Management Industry Overview

Asset management training looks at the types of Buy-Side Firms:
- Asset Managers
- Hedge Funds
- Private Equity
- Insurance Companies
- Pension Funds
- Endowments
- Foundations
- Sovereign Wealth Funds
Investment strategies and approaches:
- Fundamental Discretionary: Active/Passive, Long/Short, Event-Driven, Arbitrage, Macro, Multi-Strategy, Activist, Short Specialists
- Quantitative Strategies: High-Frequency Trading, Proprietary Strategies, Factor Investing, Momentum, Mean Reversion
- Alternatives: Real Estate, Commodities, Cryptocurrencies

Fund Structure and Investment Vehicles

Fee structures in asset management

Strategy Evaluation and Performance Measurement

Analysing Annualized Returns and Risk-Adjusted Performance Metrics
Sharpe Ratio, Sortino Ratio, Information Ratio
Maximum Drawdown, Beta vs. Enhanced Beta vs. Alpha
Case Study: Evaluating an Investment Strategy’s performance [Interactive Exercise]

Deep Dive into Portfolio Management

Revisiting the Risk-Reward Paradigm as an Optimiser

Portfolio management training explores the Modern Portfolio Theory:
- Risk & Return relationship in focus
- Diversification
- Efficient Frontier
- Asset allocation
- Correlation between assets
- Market efficiency

Tools to Achieve Investment Objectives

Concentrators:
- High risk-reward opportunities
Diversifiers:
- The pursuit of uncorrelated returns
Factors:
- Use of size, value and momentum in portfolio construction

Sources of Investment Alpha

What is “edge” and can it be quantified?
- Assessing skill/information advantage/system efficiency
Comparison of Sector Generalists vs. Specialists

Investment Analysis Frameworks

Fundamental Analysis: key components and techniques:
- Financial statements and the narratives' numbers tell
- Industry trends in focus
- Strength of management teams
Technical Analysis: charting and market trends:
- Pattern recognition applied to human behaviours
- Being on the right side of key trends
- Assessing market sentiment
ESG considerations in portfolio management:
- Approaches to qualify compliant investments
- Correlating ESG ratings to financial and non-financial performance
The role of hedges:
- Active
- Passive
- “Market neutral” and Leverage
Understanding Fund Leverage: implications and strategies

Features and Facets of Investments

Using options in the context of the “Greeks”
- Understanding Delta: Measuring the sensitivity of price to changes in the underlying security’s price
- Utilising Theta: Evaluating the time decay of an option's value as it nears expiration
- Analysing Gamma: Assessing the rate of change in Delta for a more accurate prediction of price movements

Portfolio Construction: Putting it All Together

Portfolio management training at Redcliffe concludes with a Case Study Example: Evaluating an Investment (Portfolio & individual security) [Interactive Exercise]

Asset and Portfolio Management training courses are delivered by a highly accomplished professional with a track record of exceptional performance in various sell-side and buy-side roles. He began his career at Citigroup's Industrials team in London, where he gained extensive experience in M&A and capital markets activities. He contributed to numerous pitches and transactions, specialising in diversified industrials; including automotive, aerospace & defence, and metals & mining sectors. Driven by his passion for US biotech investments, he joined Rothschild & Co. in a senior position, where he provides strategic financial advice to clients in the healthcare industry. His deep understanding of the sector enabled him to navigate complex challenges and identify lucrative opportunities.

Seeking to broaden his investing experience, this trainer entered portfolio management and investment analysis at Redline Capital Partners, focusing on long/short public equities. This allowed him to enhance his sector expertise and make informed investment decisions. In 2019, the trainer launched a proprietary trading firm, Third Wave Capital. They specialise in investments in the US healthcare and technology sectors. Additionally, he has actively invested in Indian public equities and commodities for over a decade, collaborating with his family's investment endeavours.

He holds a Bachelor of Science (Hons) degree in Accounting & Finance from the University of Warwick, strengthening his financial knowledge and capabilities. With his wealth of experience and deep industry passion, he is highly regarded for his analytical skills, strategic thinking, and commitment to delivering exceptional results. Alongside delivering Redcliffe’s asset management training courses, he provides training and consulting services to academic institutes and financial institutions, earning praise for his ability to deliver value to delegates with varying levels of experience.

Asset management training courses at Redcliffe help you master key asset management principles, including investment strategy formulation, risk/reward balance, and various investment considerations.
Analyse real-world case studies from the asset management industry to understand different investment approaches and market impacts.
Gain insights into portfolio management theories, tools, and techniques, including Modern Portfolio Theory and Investment Analysis Frameworks.
Learn about the role and strategies of hedges in portfolio management and the implications of fund leverage.
Develop skills in options trading using "Greeks" and understand the dynamics of portfolio construction.
Delegates participate in interactive exercises to evaluate investment strategies and portfolios during asset and portfolio management training.

Asset management training courses at Redcliffe are delivered online and interactively, maximising our use of time together.
Delivery for this session is flexible.
Piece together key building blocks for asset management.
Understand key elements of portfolio management and its construction.
Identify key objectives and sources of an “edge” for investors.
Evaluate a range of investment securities and assess utility to meet key investment objectives.
Practical examples of portfolio construction.

Asset and portfolio management training courses are a must-know for:

Financial Professionals: investment bankers, analysts, and portfolio managers aiming to deepen their expertise in asset management.
Asset Management Executives: senior leaders in asset management, hedge funds, and private equity seeking strategic and market insights.
Investment Advisors: consultants advising on investment strategies and portfolio management.
Corporate Finance Executives: CFOs and finance directors interested in advanced investment strategies and market effects.
Graduate Students and Academics: those in finance or economics fields looking to enhance their practical and theoretical knowledge in asset management.

The curriculum is designed to provide an in-depth exploration of asset management practices, addressing both foundational and advanced strategies suitable for early-stage ventures and mature investment portfolios. Throughout the asset management training, participants will engage with a wealth of practical examples that highlight the nuanced techniques and challenges of asset management.

Delegates will use leverage Excel to implement a range of approaches in portfolio construction and security valuation.

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