The objective of this course is to provide a solid foundation in researching, developing, and presenting attractive investment ideas, and to provide insight into the requirements of an analyst at an investment fund. The course will utilize the concepts of valuation and industry/business analysis from other courses and apply them to real-world investments. A number of topics will be covered in the course, including the following:
- Developing an Investment Process
- Understanding Business Models & Unit Economics of a Business
- How to Incorporate Macro Factors in the Analysis
- Evaluating Management Teams & Capital Allocation
- Position Management (margin of error framework, tail risks, sizing, behavior)
- Long & Short Opportunities
- Distressed Credit (dependent upon market environment / timing)
- Applying a Value Investing Framework to Non-Traditional Sectors (natural resources & industrial companies)
The course will involve a combination of lectures, case studies, class discussions, and stock pitches. However, the greatest emphasis will be on learning through case studies (real-time investment ideas), for which class discussion will be a vital part. There will be a significant amount of work to prepare for each class and students are expected to actively participate in the class discussions. Given the small nature of the class, each student’s participation is important to maximize the learning of fellow classmates.
As the course progresses, students should increasingly be able to identify and focus on the key drivers of an investment and also get comfortable dealing with imperfect information. By the end of the course students should gain an appreciation for how to develop a solid investment process, improve their ability to frame and present an investment idea, and enhance their understanding of practical considerations when looking at an investment for a buy-side fund.
The classes will be supplemented by guest speakers (fund managers/senior investment professionals) from the investment industry. The objective of the guest speakers will be to expose students to a variety of investment strategies that are based on fundamental analysis.
Adjunct Assistant Professor of Business