پارسی   English   العربیه

Applied Portfolio Management: How University of Kansas Students Generate Alpha to Beat the Street


Praise for Applied Portfolio Management

"Speaking to the APM class has always been an energizing experience. I'm glad that investors can now share in the enthusiasm and great returns the class has produced. International investing has always been one of the strengths of the class. I'm impressed with their global view. The class, and now this book, offer a unique perspective on investing throughout the world."
—Victor Almeida, President and CEO, Interceramic

"Professors Shenoy and McCarthy translate lessons from the school of hard knocks to academe. In doing so, they reveal the secrets that have led to over twenty years—and still counting—of stellar investment performance."
—John Charnes, author of Financial Modeling with Crystal Ball and Excel

"As a former student who has been in the investment research and management business for the past twelve years, I continue to use the principles I learned in the APM class on a daily basis. I believe these principles can help anyone beat the market."
—Scott F. Jones, CFA, Managing Member, Prairie Wind Capital, LLC

"Having had the opportunity to present to the Applied Portfolio Management class on four different occasions, I see the huge benefits the students get from investing real money. Each time, their analysis of our company was very thorough and well done. It was a real challenge to get a buy recommendation from the class. There was no difference in presenting to the APM class or presenting at any professional investor conference."
—John B. Dicus, CEO, Capitol Federal Financial

"Professors McCarthy and Shenoy have created a unique class at the University of Kansas. They have created the opportunity for students to participate in a 'real world' investment management experience—relating financial theory to actual practice. Students gain real insight into the process of individual stock selection and overall portfolio construction. Most importantly, the APM class demonstrates to students that 'intelligent' investing involves fundamental homework, an openness to new ideas, and adherence to a coherent overall strategy."
—Robert Kaplan, University of Kansas alumnus

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.

APM Approach.

Wrapping Up.

Chapter 3. Conventional Wisdom.

Diversification and Risk.

Efficient Markets.


Chapter 4. How Students Find An Investment Edge.

Build Your Own Information Network.

Neglected Firms.

Surface Analysis.

Wrapping Up.

Chapter 5. Alpha, Sigma, Beta.

APM's Risk and Reward.

The Risk-Return Trade-off.

Other Risk Measures.

Wrapping Up.

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.

APM's Philosophy.

LSB Industries.

Wrapping Up.

Chapter 7. Prepping for a Case.

Getting Started.

Understand the Business.

Ready to Write the Case.

Appendix. 10-K Requirements.

Chapter 8. Writing a Case.

Case Format.


Investment Thesis.

Next Steps.

Chapter 9. Gazing into the Crystal Ball.

Pro Forma Statements.

Pro Forma Financial Statements and Free Cash Flow.

Building a Pro Forma.

Next Steps.

Chapter 10. Valuation.

Relative 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.

Wrapping Up.

Chapter 12. It's a Big World (After All).


World Commodities.

Wrapping Up.

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).

Wrapping Up.

Chapter 14. Making Corporate Governance Pay.

Board Issues.

Corporate Activists.

Oplink Campaign.

Wrapping Up.

Chapter 15. It's All About Who You Know.

APM Students.

APM Speakers.

The Last Word.

About the Authors.