FINANCE & WEALTH MANAGEMENT

INVESTMENT STRATEGIES AND

PORTFOLIO MANAGEMENT

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Overview
Investment managers are facing unprecedented
change on many levels. The growing number and
complexity of asset classes, disruptive worldwide
economic and regulatory environments, emerging
technologies, and shifts in investor behaviors
and preferences make it challenging to keep
knowledge and skills current.
Investment Strategies and Portfolio Management
addresses all of these concerns, leveraging the
research and theories of Wharton’s renowned
finance faculty with practitioner experience
and expertise. The program provides a solid
understanding of today’s investment landscape
and the tools and theories for developing and
measuring the performance of portfolios. It then
looks closely at specific asset classes. Participants
will gain a solid foundation that will help them
meet their clients’ objectives and advance their
careers.
execed.wharton.upenn.edu
Fernando Beyruti
CEO and Head of International Private Bank, Itaú USA
“ The asset-management market in Brazil is huge (more than $1.5 trillion USD)
and very sophisticated, but most of the assets are Brazilian based. However, the
demand for international assets has been growing a lot and we need to be able
to manage those types of assets. In addition, more globalcompetition is coming
to Brazil and we need to differentiate ourselves and understand the kinds of
investment strategies that make sense to our clients.
Wharton’s program has given me a much better understanding of the global
market for asset management, even more in this volatile environment. The hedge fund session with
Professor Chris Geczy was a major highlight. The tools he gave me for analyzing a hedge fund were
very useful. Most of our funds are fixed income and equity. But the markets will change for more
complex funds.
Itaú Asset Management is one of the biggest asset managers in Brazil (16.5 percent of market
share). Today, 90 percent of our portfolio is Brazilian focused. We are expanding our presence
in New York and are preparing to have more international assets in our funds. Wharton gave
some great examples on how we can diversify our portfolio to expand our capacity beyond
Brazilian assets.”
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT
 Highlights and
Key Outcomes
Investment Strategies and Portfolio Management
offers a comprehensive learning experience,
bringing participants up-to-date on investment
big-picture concerns and on specific asset classes.
Wharton’s Finance faculty provide actionable
theories and practical tools for addressing asset
allocation, risk management, performance
measurement, and investment policies, as well
as for dealing effectively with today’s more
knowledgeable and active investors.
Then the program explores individual asset
classes. Wharton’s finance experts share their
knowledge of bonds, hedge funds, private equity,
derivatives, real estate, and international markets
in sessions designed to help participants better
understand when to include these investments in
their portfolios.
execed.wharton.upenn.edu
Investment Strategies and Portfolio Management highlights and benefits:
•  Increase your understanding of modern portfolio theory and
behavioral finance
•  Improve your ability to measure investment performance
•  Learn new asset allocation tools
•  Recognize when to choose active managers versus passive investments
•  Understand the opportunities and risks of bonds, hedge funds,
private equity, real estate, international markets, and derivatives
•  Better navigate and manage for risk
•  Gain insights into the global economy and potential future
market disruptions
Session Topics
•  Modern Portfolio Theory
•  Performance Measurement
•  Evaluating Managers and Strategies
•  Advanced Asset Allocation
•  Investment Policy
•  Outlook for the Economy and Navigating Its Risk
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT
 industry

Participant Profile
This program is designed for investment region
professionals and investment-services
providers, including:
•  Portfolio managers and analysts at mutual
funds, pension funds, corporations, and
institutions sponsoring and providing
investment vehicles for their employees
and beneficiaries
•  Corporate and individual retirement planners

•  Employees of insurance companies

•  Commercial-bank employees with portfolio

management responsibilities
The program provides valuable insights to general job function
managers, senior functional managers, and high-
net-worth individual investors who want to manage
their own investments or work more knowledgeably
with professional managers. Cross-functional
teams can also benefit from leveraging collective
knowledge across a larger organizational footprint.

To further leverage the value and impact of this

program, we encourage companies to send
cross-functional teams of executives to Wharton. We
offer group enrollment benefits to companies sending
four or more participants.

execed.wharton.upenn.edu
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT
 Faculty ADDITIONAL FACULTY

Gordon Bodnar, PhD

Director, International Economics Program,
SAIS, Johns Hopkins University
Jeff F. Jaffe, PhD
Academic Director Christopher Geczy, PhD
Adjunct Professor of Finance; Academic
Associate Professor of Finance, Director, Wharton Wealth Management
The Wharton School Initiative; Academic Director, Jacobs Levy Equity
Management Center for Quantitative Financial
Research, The Wharton School

Joao Gomes, PhD

Best known for his work on insider trading, Howard Butcher III Professor of Finance;
Chairperson, Finance Department,
Professor Jaffe’s research interests include The Wharton School
corporate finance, investments, money
A. Craig MacKinley, PhD
management, and the effects of information Joseph P. Wargrove Professor of Finance,
on the behavior of security prices. A Wharton The Wharton School
faculty member since 1973, Professor Jaffe Krishna Ramaswamy, PhD
received the Wharton Evening School’s Edward Hopkinson, Jr. Professor of Investment
Banking; Professor of Finance,
Outstanding Professor Award for 1989–1990. The Wharton School
Professor Jaffe has been a frequent contributor
to finance and economic literature in journals
including the Quarterly Journal of Economics, the
Journal of Finance, the Journal of Financial and
Quantitative Analysis, the Journal of Financial
Economics, and the Financial Analysts Journal.

execed.wharton.upenn.edu
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT
 PERFORMANCE MEASUREMENT ADVANCED ASSET ALLOCATION focuses

Session Highlights provides a high-level understanding of the

uses of performance-related measures. It
on the implications of a current and future
world of compressed expected returns
also considers the strengths and for investors, including the positives
weaknesses of the measures along and negatives of taking on excess risk.
MODERN PORTFOLIO THEORY covers the
with possible misuses. Topics to be covered include factor-based
fundamentals of portfolio theory including the investing, spending rules and distribution,
INVESTMENT POLICY examines how this tactical asset allocation, recent models
nature of risk, efficiency, diversification, asset
policy stipulates the target-asset class of asset allocation, and the value of
allocation, market timing, beta coefficients,
allocation, the range of deviation allowed discretionary portfolios and how to
and time-weighted vs. value-weighted rates of
around the target, and short- and long- present them to clients.
return. It also explores the three cornerstones of
term objectives. Investment manager
modern portfolio theory: 1) the nature of risk, 2)
selection and its impact on an investment BOND MANAGEMENT discusses interest
efficient asset selection, and 3) beta.
program’s results is discussed. rate risks, which reflect the fluctuation of a
BEHAVIORAL FINANCE examines how behavioral
bond’s value with interest rate changes. It
DERIVATIVES AND THEIR USE explains explores the two types of interest rate risk:
biases make investors, both individual and
what puts and calls are and how to reinvestment risk and price risk. Using
institutional, prone to investing mistakes. It
create spreads, straddles, protective examples, it covers topics of concern
covers overconfidence, regret and pride, house
puts, and other option combinations. It to portfolio managers: the concept of
money effect, snakebite effect, get-even-itis,
also covers what stock market futures duration risk, short-run fluctuations in
overreaction, under reaction, over choice, home
and interest rate futures are and how the portfolio’s value, and future liabilities’
bias, and naïve diversification.
to use them. Finally, the conceptual consistency with current asset acquisition.
EVALUATING MANAGERS AND STRATEGIES In
differences between options and futures
this session, applies risk-adjusted performance are explored.
measures in the context of evaluating managers.
Key takeaways include: the importance of the
choice of benchmark, the role of style integrity
in manager selection, and the usefulness of
the measures for insuring a diversified position
when managers are pooled together.

execed.wharton.upenn.edu
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT
 INTERNATIONAL MARKETS considers the

Session Highlights ability of international investments to offer

enhanced diversification, asset-liability
matching, or excess return. Participants
are exposed to in-depth analysis of the
HEDGE FUNDS discusses performance
implications of international investing for
measurement, the existence and measurement common asset allocation decisions.
of styles among absolute returns strategies,
REAL ESTATE INVESTMENTS views real
manager incentives, and compensation and
estate through the lens of modern portfolio
recent regulation changes for this murky area of
theory, discussing the return properties of
investment management.
various categories of real estate, the role
In addition, recent evidence on performance
of appraisal smoothing, and how to think
persistence and “hot hands” will be addressed
about the appropriate portfolio allocation
as part of a discussion on hedge fund asset
to the sector. It also examines real estate’s
allocation and manager selection.
role as a possible inflation hedge.
PRIVATE EQUITY provides the PE framework and
OUTLOOK FOR THE ECONOMY AND
an overview of the PE industry. Key takeaways
NAVIGATING ITS RISK provides a broad
are: understanding the nature of private equity
survey of economic trends affecting
investment, understanding the limited partner-
firms, markets, and investors. It explores
general partner dynamic, evaluation of PE
monetary policy, useful valuation metrics,
investment opportunities as a limited partner,
and asset markets today, with a particular
and evaluation of general partners.
focus on U.S. equity markets.

execed.wharton.upenn.edu
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT

Wharton staff took a lot of
the stress out of the logistical
concerns so I could really
focus on absorbing the course
content.”
— Megan K.,
Energy industry executive
execed.wharton.upenn.edu
learn more and tour campus:
YourWhartonExperience.com
plan your
stay with us
Most Wharton Executive Education programs are
offered on the University of Pennsylvania campus in
Philadelphia. Located between New York City and
Washington D.C., Philadelphia is easily accessible from
most major cities around the world.
HOTEL ACCOMMODATIONS
Your Philadelphia program fee includes hotel
accommodations. Most participants stay at the
Steinberg Conference Center, a 103-room full-service
hotel and classroom facility on Penn’s campus. There
are also several other hotels available nearby, including
the Hilton Inn at Penn.
MEALS DURING YOUR STAY
The majority of your meals are served in the Steinberg
Conference Center and are included in your program
fee. With advance notice, we can accommodate special
dietary needs.
HISTORIC AND CULTURAL HUB
A historic and cultural powerhouse, Philadelphia offers
numerous tourist attractions, including the
Independence National Historical Park, the National
Constitution Center, the Philadelphia Museum of Art,
and the Barnes Foundation.
INVESTMENT STRATEGIES
AND PORTFOLIO MANAGEMENT
 Sample Program Schedule* INVESTMENT STRATEGIES AND
PORTFOLIO MANAGEMENT

DAY 1 DAY 2 DAY 3 DAY 4 DAY 5

BREAKFAST

Program Overview Evaluating Managers Derivatives and Their Use Private Equity Outlook for the Economy and
and Strategies Navigating Its Risk

Modern Portfolio Theory Advanced

Asset Allocation Review of Content

LUNCH

Modern Portfolio Theory Bond Management International Markets Investment Policy

(continued)

Performance Measurement Real Estate Investments Hedge Funds

Real Estate

network reception

DINNER

SCHEDULE A CONSULTATION:

+1.215.898.1776 (worldwide) | execed@wharton.upenn.edu

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*Program start and end times are subject to change.
Please DO NOT make travel arrangements based on this agenda.

Visit our website for more information on fees and upcoming dates. Click here » CP-PF0120-0120