Catherine Shenoy, PhD, MBA, is Director of the Applied Portfolio Management program at the University of Kansas School of Business. She has worked for the U.S. State Department as a Foreign Service Officer in Washington, DC, and Tunis, Tunisia. Since 1993, she has taught accounting, statistics, and finance at the University of Kansas. Shenoy's research areas include corporate governance, corporate financial policies, and applications of artificial intelligence to portfolio analysis.
Kent C. McCarthy, MBA, is President and Chief Investment Officer of Jayhawk Capital Management. In 1994, he retired from Goldman Sachs, returned to Kansas, and founded the Applied Portfolio Management class. McCarthy taught the class full-time until 1995, when he founded Jayhawk Capital Management, which manages hedge funds and private equity funds primarily focused on the Chinese equity markets. He continues as an Executive Lecturer in the APM class.
Part One. Introduction to the Applied Portfolio Management Class.
Chapter 1. APM History.
In the Beginning.
How do Beginning Investors Think?
Student Groups – Short-Term Investing and Portfolio Contests.
Getting Close to the Information.
Onions, Poker, and Ants.
What about the Ants?
Things to Come.
Chapter 2. APM Guidelines.
Professional Money Managers.
Tactical Asset Allocation and Sector Benchmarking.
Chapter 3. Conventional Wisdom.
Diversification and Risk.
Chapter 4. How Students Find An Investment Edge.
Build Your Own Information Network.
Chapter 5. Alpha, Sigma, Beta.
APM's Risk and Reward.
The Risk-Return Trade-off.
Other Risk Measures.
Appendix. Risk and Return Calculations.
Part Two. Building an Investment Case.
Chapter 6. Many Ways to be a Successful Investor.
Common Traits of Successful Investors.
Chapter 7. Prepping for a Case.
Understand the Business.
Ready to Write the Case.
Appendix. 10-K Requirements.
Chapter 8. Writing a Case.
Chapter 9. Gazing into the Crystal Ball.
Pro Forma Statements.
Pro Forma Financial Statements and Free Cash Flow.
Building a Pro Forma.
Chapter 10. Valuation.
Discounted Cash Flow Valuation.
Investing is Dynamic.
Appendix. Discounted Cash Flow Formulas.
Part Three. Class Specials.
Chapter 11. Investing in China.
Financial Systems in China.
Raising Equity in China.
Company Example - China Green.
Chapter 12. It's a Big World (After All).
Appendix. Valero's Numbers.
Chapter 13. Local Biases.
American Italian Pasta (PLB).
Novastar Financial (NFI).
Inergy, L.P. and Inergy Holdings, L.P.
Tortoise Capital Advisors (and more about Inergy).
Chapter 14. Making Corporate Governance Pay.
Chapter 15. It's All About Who You Know.
The Last Word.
About the Authors.