An active approach to investing that has dramatically outperformed the stock market, "Applied Portfolio Management" explains the critical skills it takes to become a financial analyst and an active stock investor. Presenting the class notes and actual results of the Applied Portfolio Management program at the University of Kansas School of Business - which has outperformed the market in dramatic fashion over its history - this book offers readers real-world investment experience; introduces them to various styles of investing; and, teaches them the fundamentals of valuation and investing. Catherine Shenoy, PhD, MBA (Lawrence, KS) is Director of the Applied Portfolio Management program at the University of Kansas School of Business. Kent McCarthy, MBA, CPA (Incline Village, NV) is President and Chief Investment Officer of Jayhawk Capital Management.
Foreword.Preface.Acknowledgments.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.Conclusion.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.Description.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).Interceramic.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.Index.
