Portfolio Management
The Portfolio Management branch provides members with direct experience in constructing and managing a live investment portfolio. Members are involved in every aspect of the process, including security selection, financial modeling, risk assessment, and performance optimization.
Educational Sessions
Members attend sessions focused on financial modeling, valuation techniques, portfolio optimization, and risk management. Topics include discounted cash flow models, relative valuation, and asset allocation strategies that provide a technical foundation for portfolio management.
Portfolio Development and Management
The portfolio consists of around 15 equity and fixed-income positions. Members identify investment opportunities through financial statement analysis, macro modeling, and industry benchmarking. Proposals, supported by quantitative analysis, are collaboratively reviewed.
Performance Metrics and Decision-Making
The branch uses quantitative metrics to evaluate portfolio performance, including Sharpe ratio, alpha generation, and downside risk. Scenario analysis and sensitivity testing guide decision-making, while regular rebalancing manages risk exposure.
Liquidation and Report Publication
At the end of the fiscal year, the portfolio is liquidated, and a performance report is prepared. This includes return attribution, analysis of key drivers of performance, challenges faced, and recommendations for future strategies.