Applied Portfolio Management: How University of Kansas Students Generate Alpha to Beat the Street
The students at the University of Kansas have earned an annual average return over 20% since 1994 when the Applied Portfolio Management program was founded, blowing away the NASDAQ’s average 9% over the same period. Learn how they did it and help boost the return on your own portfolio.In 1988, when investment professional Kent McCarthy returned to teach at his alma mater, the University of Kansas, he planted the seeds for the Applied Portfolio Management (APM) program—a course that offers students a unique opportunity to learn the intricacies of investing by managing a real portfolio.Thirteen years later, with the help of Catherine Shenoy—the Director of APM for the last seven years—this class has compiled a remarkable record of investment performance and student achievement. It has launched the Wall Street careers of many students, and the class portfolio has outperformed the market in dramatic fashion over its history.Now, with Applied Portfolio Management, Shenoy and McCarthy share their experiences of this class with you and discuss how to incorporate the methods it teaches into your everyday investment endeavors. Divided into three comprehensive parts, this detailed guide puts successful investing in perspective by addressing some of the most essential elements of this field, such as understanding the fundamental drivers of business success, buying at the right price, and building a network of contacts.Step by step, you'll learn how to operate in today's dynamic market environment—one in which changing investment conditions will force you to continuously shift your investment strategy. Along the way, you'll also discover how to dig behind the facade of press releases and spin to figure out what's really going on with an organization, and answer important questions such as: How does a company make money? What numbers, from quarterly reports to annual statements, demonstrate how well a company is accomplishing its mission? What are the people running the company like?Other issues that are carefully covered include:How quality of information—and evaluating and interpreting it correctly—is the key difference between average returns and extraordinary returnsWhat it takes to create a "case" for the companies in your portfolio—from putting together a pro forma analysis to coming up with a final target price based on your valuationWhere world trends, local biases, and corporate governance fit into the investment pictureAnd much moreGood investment habits are built from the ground up and can be developed by learning from a network of individuals with a wide variety of views. These are the ingredients that make a successful investor, and these are the ingredients that the Applied Portfolio Management program at the University of Kansas has tried to cultivate.If you're looking to enhance your investment performance, Applied Portfolio Management has the information you need to succeed. Pick it up today and put its ideas to work for you.