Unit information: Investment Management in 2018/19

Unit name	Investment Management
Unit code	ECONM2030
Credit points	15
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Dr. Friederich
Open unit status	Not open
Pre-requisites	Asset Pricing ECONM2035
Co-requisites	None
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This unit describes the techniques used by investment managers to build and maintain portfolios of stocks and bonds and the techniques used by investors to assess portfolio manager performance.

As such, the course would be excellent preparation for those considering a career in fund management or quantitative trading.

The course has a largely practical bias but the material is presented from a rigorous, model-based perspective. We start with a review of the theory relevant to investment strategies and portfolio choices (market efficiency, basic asset pricing models, the Grossman/Stiglitz paradox…)

The course then develops the theoretical tools to assess the risk-adjusted performance of investment strategies. The unit also examines in detail the empirical evidence available on the performance of professional portfolio managers.

Intended Learning Outcomes

1. Demonstrate understanding of and critically evaluate the theory relevant to investment strategies and portfolio choices (market efficiency, basic asset pricing models, the Grossman/Stiglitz paradox…);
2. Demonstrate understanding of and critically evaluate models of active equity and bond portfolio management;
3. Demonstrate understanding of and critically evaluate various metrics for assessing portfolio manager performance;
4. Demonstrate understanding of and critically evaluate in detail the empirical evidence available on the performance of professional portfolio managers.

Teaching Information

Please include reference to any distance learning or any significant e-learning components, if appropriate

20 contact hours, split between lectures and exercise lectures (typically 14 hours lectures, 6 hours exercise lectures). In addition, scheduled clinics are organised in which the students can discuss individual questions and problems.

Assessment Information

The unit is assessed via a two-hour examination which tests all intended learning outcomes.

Formative assessment is undertaken through exercise lectures, where students receive verbal and written feedback on their work. Model solutions to practice questions are also available. Students seeking additional, one-to-one support with numerical assignments may attend drop-in clinics scheduled every week.

Reading and References

• Bodie, Kane and Marcus, Investments, current edition, McGraw-Hill.

• Litterman, B., Modern Investment Management, Wiley,

• Grinold and Kahn, Active Portfolio Management, McGraw-Hill