Equity Valuation and Portfolio Management

EQUITY VALUATION and PORTFOLIO MANAGEMENT

Equity valuation and portfolio management are among the most important endeavors in finance. With the diffusion of affordable, high-speed computing technology and significant progress made in financial modeling and processes, the opportunity to excel at this competitive and complex activity is completely possible—but only if you have a firm understanding of certain tools and techniques.

Nobody knows this better than financial experts Frank Fabozzi and Harry Markowitz. And now, with Equity Valuation and Portfolio Management, they lead a team of contributing authors—many with extensive experience as equity portfolio managers and/or equity strategists—to discuss state-of-the-art methods for implementing equity valuation models, trading models, and portfolio management strategies.

Filled with in-depth insights and practical advice, this reliable resource covers the most essential aspects of this discipline, and allows you to test your knowledge of the issues explored with challenging questions at the end of each chapter. Topics addressed include:

• Relatively new and improved approaches to equity selection, from economic value added (EVA) and cash flow return on investment (CFROI) to the franchise factor model (FFM)

• The process of performing quantitative equity research and converting that research into implementable trading strategies

• A framework for equity portfolio management that involves an outline of the fundamental relationships between stocks and investment approaches as well as their potential risks and rewards

• The concept of tracking error, how it's computed, and the identification of some factors that affect tracking error for an equity portfolio

• Several methods for the modeling of transaction costs, in particular, market impact costs

• And much more

If you want to make the most informed decisions possible when dealing with equity valuation and portfolio management, then this is the book you need to read. Whether you're a seasoned professional or just entering this area of finance, Equity Valuation and Portfolio Management has what you need to succeed.