Stock Portfolio Management Process

Portfolio Management Project

General

• Start with $1,000,000 cash to be invested beginning 9/30/17closing in accordance with the management style as assigned.
• The account is a cash account and no margin can be used for this project.
• Stocks: AMZN, FB, PCLN, GOOG, MSFT, V, HD, SYK, ADBE, ATVI, BA, CELG, HDB, SBUX, EA (15 in total, up to you about how much you buy of each)

Trading Rules

• Assume that there are no commissions associated with trading for this project.
• It is your responsibility to keep track of the trade prices.

Reporting

• Prepare a report 4 weekly reports (the fourth week report should be of the entire month)in a format designed to include performance, account characteristics and any other information deems important.
• Develop an internal decision making mechanism which will support their buy/sell decisions.

Month of October

Background Information Provided

Responsible for written documentation of the following:

• Organization of Firm
• Investment Philosophy & Process with stated discipline to include
  • Top Down vs. Bottom Up
  • Market Timing (yes or no)-holding large cash positions
  • Growth vs. Value
  • Security Selection Process
    • Fundamental Analysis used
    • Technical Analysis used
  • Portfolio Construction
    • Average number of securities held in portfolio
    • Equal weighted positions or relative to securities position in benchmark index.

Management of portfolio

Reporting of transactions taking place during period

Performance/Portfolio Reporting (Month End)

The portfolio is a long only portfolio.  No Short Sales are allowed.

Further details:

Security Selection

What characteristics are important in stock selection.

Growth Stock Selection-Focuses on growth (either historical or potential ) of some fundamental issue

BENCHMARK TO WHICH YOU ARE MANAGING AGAINST IS THE S&P 500 GROWTH INDEX

Revenue Growth

Earnings Growth

Cash Flow Growth

Dividend Growth

You can either use historical growth rates or expected growth rates in the above in order to make your stock selection.

Portfolio Construction

How will you put the stocks selected into a portfolio of securities?

How many stocks will you have in your portfolio?  This will impact your diversification and the volatility of your portfolio.

How will you weight each position-equal weight or other technique?

Will you take into account the sector weights of your portfolio relative to the benchmarks sector weights?

RUBRIC FOR THE ASSIGNMENT GIVEN BY OUR PROFESSOr