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Portfolio management

This module focuses on investment decision-making and improved portfolio management from an applied perspective.

The module introduces state-of-the-art methodologies which are used by professional portfolio managers. It develops skills based on modelling of asset price procedures and empirical research findings. It also takes a wider view considering a variety of issues concerning portfolio managers.

Topics covered

  • Economic Analysis & Investors Expectations
  • Asset Allocation
  • Mean-Variance Theory: CAPM & APT
  • Fixed-Income Portfolio Management
  • Equity Portfolio Management
  • Alternative Investments Portfolio Management
  • Risk Management
  • Implementing Portfolio Decisions: Trading & Transaction Costs
  • Monitoring & Rebalancing
  • Evaluating Portfolio Performance

Learning outcomes

If you complete the module successfully, you should be able to:

  • understand and evaluate major portfolio management and risk concepts including the mean-variance optimiser and resampled efficient frontier.
  • describe and assess perspectives of economic analysis in capital market expectations.
  • explain the Black-Litterman approach.
  • demonstrate the applications of fixed-income securities, risk management, portfolio rebalancing and portfolio evaluation.
  • critically discuss the relation between economic activity and investor expectations.
  • apply portfolio management concepts and techniques to their specific business problems.
  • construct advanced portfolios and perform better on CFA examinations.
  • utilise professional financial tool skills and case studies to support decisions.
  • work both independently and in teams to create and manage financial strategies.
  • present highly technical financial material to non-practitioners simply and clearly.
  • synthesise and use information and materials from a variety of different sources to support an argument.
  • apply research skills into negotiations and conflict management problems and the application of these in the assembling and analysis of facts and situations.


This module is assessed by:

Coursework (50% weighting):

  • There is one item of coursework for this module which contributes to the final assessment mark for this module.
  • Coursework: a written essay of a maximum of 2,000 or 2,500 words (deadline – weeks 9-12) The coursework is designed to check student progress, extend and reinforce concepts covered and also test individual performance.

Examination (50% weighting):

  • The final piece of assessment will be an unseen written examination of 2 hours’ duration.

Essential reading

The following is provided as part of the module materials after you register:

  • Maginn, J. L., Tuttle, D. L., Pinto, J. E. and McLeavey, D. W., Managing Investment Portfolios: A Dynamic Process, Wiley & Sons, 2007
  • Elton, E. J., Gruber, M. J., Brown, S. J. and Goetzmann, W. N., Modern Portfolio Theory and Investment Analysis (ninth edition), Wiley & Sons, 2014

Module author

Professor George Kapetanios, module leader

Professor George Kapetanios

BSc (City University), MSc (LSE), PhD (Cambridge)

Professor Kapetanios works in the area of econometrics and macroeconomics. His main research focuses are on the econometrics of structural change, the analysis of large datasets, and applications of these to empirical finance and macroeconomics. He has published widely in econometrics and finance.

He has been, and continues to be, heavily involved in the development of innovative postgraduate degrees in finance with a special focus on graduate employability.