FM406      Half Unit
Topics in Portfolio Management

This information is for the 2013/14 session.

Teacher responsible

Dr Michela Verardo OLD 4.24


This course is available on the MSc in Finance (full-time), MSc in Finance (part-time) and MSc in Finance and Private Equity. This course is not available as an outside option.


Students must have completed Asset Markets (FM423) and Corporate Finance (FM422).

Course content

This course aims to cover the main topics in equity portfolio management, with a strong focus on empirical applications. Some of the topics covered in the course include: Portfolio optimization techniques; Multi-factor models and their applications; Trading strategies; International portfolio management and currency hedging; Trading costs; Portfolio performance measurement and attribution; Style analysis; Mutual funds; Hedge funds. The course is based on a number of empirical applications and case studies, so that students can gain a better understanding of implementation issues related to managing an equity portfolio.


30 hours of lectures in the MT. 30 hours of lectures in the LT.

MSc Finance (part-time): taught MT (evenings). MSc Finance (full-time): taught LT (daytime).

Formative coursework

Regular classworks will be completed, handed in and marked as part of formative assessment for this course.

Indicative reading

A study pack will include lecture notes and case studies. All relevant articles will be made available during the course. Useful references are Modern portfolio theory and investment analysis, by E. J. Elton, M. J.Gruber, S. J. Brown, and W. N. Goetzmann, Wiley Press; Investments, by Z. Bodie, A. Kane, and A. Marcus, McGraw-Hill Irwin; Modern investment management, by Bob Litterman and the Quantitative Resource Group, GSAM, Wiley Press.


Exam (90%, duration: 2 hours) in the main exam period.
Coursework (10%) in the MT and LT.

Key facts

Department: Finance

Total students 2012/13: 72

Average class size 2012/13: 17

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Application of information skills
  • Application of numeracy skills
  • Commercial awareness