Mastery in Financial investment Analysis and risk management #252003

Upon successful completion of this masterclass, participants will be able to:

• Apply advanced valuation models (DCF, LBO, Real Options) to a range of asset classes, including complex and non-traditional investments.

• Critically evaluate investment opportunities by analyzing industry dynamics, competitive positioning, and financial statement quality.

• Design, calculate, and interpret advanced risk metrics, including Value at Risk (VaR), Expected Shortfall, and stress testing scenarios.

• Formulate and implement hedging strategies using derivatives (options, futures, swaps) to mitigate specific financial risks.

• Construct and optimize investment portfolios using Modern Portfolio Theory (MPT) and its post-modern critiques, aligning them with specific investor objectives and constraints.

• Synthesize analysis and risk assessment into a professional investment recommendation memorandum.

This advanced masterclass is designed for experienced practitioners in the fields of investment and finance:

• Portfolio Managers and Asset Managers

• Senior Financial Analysts and Research Analysts

• Risk Managers and Chief Risk Officers (CROs)

• Wealth Managers and Private Bankers serving HNWI

• Investment Advisors and Fund Managers

• Treasury Professionals managing corporate investments

• Actuaries and Investment Consultants

Prerequisite: A strong command of corporate finance, financial accounting, and intermediate statistics is essential. Experience with Excel for financial modeling is required.

• Pre-assessment
• Live group instruction
• Use of real-world examples, case studies and exercises
• Interactive participation and discussion
• Power point presentation, LCD and flip chart
• Group activities and tests
• Each participant receives a binder containing a copy of the presentation
• slides and handouts
• Post-assessment

Day 1: Advanced Equity Analysis & Valuation Deep Dive

• Morning Session: Fundamental Analysis Reengineered

  • Beyond the Ratios: In-Depth Quality of Earnings and Cash Flow Analysis.

  • Forensic Accounting Techniques to Identify Red Flags and Adjustments.

  • Analyzing Competitive Advantage (Moat) and Industry Lifecycle.

• Afternoon Session: Advanced Valuation Modeling

  • Leveraged Buyout (LBO) Modeling for Valuation and Returns Analysis.

  • Real Options Valuation for Projects and Highly Uncertain Cash Flows.

  • Workshop: Value a company using a three-statement LBO model and determine the IRR for a potential financial sponsor.

Day 2: Fixed Income & Alternative Investment Analysis

• Morning Session: Advanced Fixed Income Analytics

  • Term Structure of Interest Rates and Advanced Yield Curve Analysis.

  • Calculating and Interpreting Duration, Convexity, and their use in Portfolio Immunization.

  • Credit Analysis: Modeling Default Risk and Pricing Credit Derivatives (CDS).

• Afternoon Session: Mastering Alternative Investments

  • Valuation Techniques for Private Equity and Venture Capital.

  • Introduction to Hedge Fund Strategies and Risk-Return Profiles.

  • Case Study: Analyze the risk-return profile of a distressed debt opportunity.

Day 3: Derivatives & Hedging Strategies for Risk Mitigation

• Morning Session: Advanced Derivatives Pricing & Applications

  • Option Pricing: Deep Dive into the Binomial Model and Black-Scholes-Merton.

  • The “Greeks” (Delta, Gamma, Vega, Theta): Dynamics and Hedging Applications.

  • Pricing and Using Interest Rate Swaps and Currency Swaps.

• Afternoon Session: Designing Hedging Programs

  • Structuring Hedges for Equity, Interest Rate, and Foreign Exchange Exposure.

  • Assessing Hedge Effectiveness under accounting standards (e.g., IFRS 9).

  • Simulation: Design a delta-neutral hedging strategy for an options portfolio.

Day 4: Portfolio Construction & Quantitative Risk Management

• Morning Session: Modern Portfolio Theory and Beyond

  • Critical Analysis of MPT: Assumptions, Limitations, and Practical Application.

  • Black-Litterman Model: Incorporating Investor Views into Portfolio Optimization.

  • Factor Investing and Smart Beta Strategies.

• Afternoon Session: Quantifying Portfolio Risk

  • Calculating Value at Risk (VaR) using Parametric, Historical, and Monte Carlo Simulation Methods.

  • Beyond VaR: Expected Shortfall (CVaR) and Backtesting VaR Models.

  • Stress Testing and Scenario Analysis: Designing Plausible Worst-Case Scenarios.

  • Hands-On Lab: Calculate the 1-day VaR for a multi-asset portfolio and interpret the results.

Day 5: Synthesis, Ethics, and Capstone Challenge

• Morning Session: Behavioral Finance & Ethical Considerations

  • Identifying and Mitigating Cognitive Biases in Investment Decisions.

  • Ethical Dilemmas in Investment Management: Insider Information, Conflicts of Interest, Fiduciary Duty.

• Afternoon Session: Capstone Project

  • Final Challenge: Participants are provided with a complex case study involving a multi-asset investment opportunity. They must:

    1. Perform a detailed valuation.

    2. Analyze all relevant risks.

    3. Propose a hedging strategy.

    4. Assess its impact on a existing portfolio.

    5. Present a final investment recommendation.

  • Course Recap: Integrating Analysis and Risk Management into a Disciplined Investment Process.

  • Award of Certificates.