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Portfolio Management

Portfolio Management

Investment management, also known as portfolio, management is the professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, corporations etc.) or private investors.


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Anastasia Romanova

Anastasia Romanova

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[There] is strong evidence that the average individual investor simply does not know how to manage his or her own stock investment portfolio. Individual investors need either to dramatically improve their personal skills or fire themselves and hire someone who can do a better job.

Article: Most Individual Investors...
Source: Financial Articles

Quantitative equity portfolio management has evolved into an interdisciplinary activity that draws expertise from the fields of finance, statistics, econometrics, accounting, and optimization.

Article:   Factor Alignment Problems…
Source:  Offline Book/Journal

Top-level descriptions of portfolios are clear cut. We calculate the predicted risk, the predicted return, trades, and subsequent realized returns with formulae that are widely used and understood. Matters become obscure when we attempt to reveal the numbers behind the numbers.

Article:   The Description of Portfo…
Source:  Offline Book/Journal

Portfolio management is the practice of managing funds for an institution by researching and analyzing potential investments and deciding where to allocate funds. The institution can be a large business (i.e. bank), a nonprofit like a university with a large endowment, or a small independent fund. Not only does portfolio management vary on the institution, but by the type of investments that are managed.

Article: Investment Portfolio Mana...

The classic example of unintended risk in a portfolio is the investor who buys six different mutual funds and thinks that equals diversification. What the investor may not realize is that all six funds can own 10 of the same stocks. Instead of diversifying risk, the investor has concentrated it.

Article: Managing Risk in an Inves...
Source: The New York Times

The basics of portfolio management are investment risk and return. Everything a portfolio manager does; planning, asset allocation, diversification, risk management, investing strategies, etc., boils down to trying to affect investment risk and return.

Article: Portfolio Management: Par...
Source: Asset Allocation Model Po...

Capital market theory, by providing an operationally useful framework for assessing risk-return tradeoffs, has inspired the development of an objective basis for portfolio analysis as well as improved methods of measuring the performance of funds. Investment managers and major plan sponsors, along with leading consultants, have applied these methods to improve objective-setting and control of the investment process.

Article:   Systematic portfolio mana…
Source:  Offline Book/Journal

Assuming you have a portfolio or fund that is up and running, it is imperative that periodic evaluations take place. […] the investment policy statement should be evaluated at least yearly. Questions to answer include the following:
• Ha the portfolio achieved its goals?…

Article:   Investment Manager Analys…
Source:  Offline Book/Journal

…organizations that make a concerted effort to actively manage their corporate portfolios of investments are advantaged in realizing their financial, strategic, and risk objectives and ultimately in creating value.

Article:   Optimizing corporate port…
Source:  Offline Book/Journal

…managing investment portfolios is ultimately about managing risk, or preparing for uncertainty and unexpected outcomes.

Article:   Managing Investment Portf…
Source:  Offline Book/Journal