Applied Portfolio Management is a two-semester program that enables undergraduate students to apply their academic knowledge and gain practical skills by managing a portfolio of Australian equity securities in real time using real money. Students are exposed to the world of asset management through an analyst role and are responsible for the construction, monitoring and management of the University of Sydney student-managed funds. Analysts are grouped into industry teams, starting with evaluating existing investments. After thorough economic, industry and company research and analysis, each team of analysts is required to identify opportunities in their industry and develop an investment thesis that highlights undervalued stocks that may offer superior investment performance. Students present potential investments to academics, industry professionals and other analysts who serve in investment committee roles. Students report to the Investment Committee and Advisory Committee and prepare an annual report on the fund’s activities. Emphasis is placed on team-based learning and interaction with industry professionals who act as student mentors.
Three Learning Outcomes
- LO1 . Demonstrate an understanding of the drivers of value in the Australian equity market. Determine how to use economic indicators, company announcements, and economic forecasts to gauge the health of the economy and individual companies. Generate trading strategies based on this information. Use the above skills to construct a stock portfolio based on fundamental and quantitative analysis. Identify and manage risks inherent in investment portfolios.
- LO2 . Evaluate portfolio performance and your stock forecast. Reflect on the underlying value drivers that you predicted correctly or did not correctly predict.
- LO3 . Understand the sources of quantitative and qualitative information that affect stock value. Identify and backtest fundamental and quantitative portfolio trading strategies. Enhance your knowledge of Excel and become proficient in using Eikon for data, journalism, and analysis. Identify additional data sources to aid in forecasting company value and portfolio construction.
- LO4 . Effectively communicate your trading proposals, both orally and in writing, using a range of communication methods, including analyst reports and presentations. Critically analyze and peer-evaluate presentations and discuss them for the benefit of the fund.
- LO5 . Articulate the fund’s investment philosophy and understand and act in accordance with your ethical responsibilities as a portfolio manager. Understand the benefits and costs of socially responsible investing