CHRISTIAN SCHOPPER
20 Merchant Court, 61 Wapping Wall Eipeldauerstr. 38 / 22 / 8 London E1W 3SJ, U.K. 1220 Vienna, Austria +44-207-480-5639 (tel.) +43 1 25 69 255 (tel.) +44-7768-854-655 (mob.) +43 664 440 0154 (mob.) [email protected]
PORTFOLIO MANAGEMENT
Course Description – Executive Summary
Content
The aim of the sessions is to wrap up general principles in Modern Portfolio Theory, but foremost to introduce to you the perspective of a venture capital, private equity and mutual fund manager´s issues and challenges in making investment decisions.
Learning Approach
As needed, theory / concepts / techniques will be reviewed or introduced in class presentations prior to their application. The dominant modes will be your presentations, financial analysis and investment decisions in respect to various case studies.
1. You will be required to hand in a 5-page written analysis and additional 10 overhead slides (think about an appropriate structure / order of the slides!) of the Case Study: “Veuve Clicquot”, answering – among others – the following questions / themes: a. Provide a full analysis about how the Company and its major competitors are doing (Cash Flow; Working Capital Analysis; Margin Analysis; Growth Dynamics; Return Dynamics: RoE; RoA; RoI; etc.). Provide also a full strategic analysis vis-à-vis its competitors b. Based on derived valuation multiples (benchmarking via analysing the Company´s competitors), determine the value of the Company and its share price c. You are a mutual fund and invited to invest EUR 10m in this Company: What would your investment criteria include and what stake (what percentage) would you ask for?
2. You will be required to hand in a 5-page written analysis and additional 5 overhead slides of the Case Study: “SET”, answering the following: You are a venture capital investor and invited to invest EUR 100,000 in the Company: Would you invest? What stake would you ask for and what conditions would you require? How much is the Company worth? – Provide all your reasons for the decision you come up with, run various scenarios according to the Case and be ready to defend your conclusion.
3. You will be required to hand in a 5-page written analysis and additional 10 overhead slides (think about an appropriate structure / order of the slides!) of the Case Study: “Telecoms Backbone Carrier”, answering the following: You are a private equity fund and invited to support a Management Buy-In (Leveraged Buy-Out): What is the Company worth? Would you support this transaction? What stake would you ask for (the rest should be provided to the Buy-In Management as an incentive) and what conditions would you require? How much is the Company worth? – Provide all your reasons for the decision you come up with, run various scenarios according to the Case and be ready to defend your conclusion.
Course Material
Hand-Outs will be available at the Institute; these include: (i) Case Study: “Veuve Clicquot”; (ii) Case Study: “SET”; and (iii) Case Study “Telecoms Backbone Carrier”.
Preparation and Grading
Your respective Presentations must be handed in at the respective Institute in writing (i.e. paper print-out) latest the day before class starts – otherwise no grade will be given. Bring a CD / DVD with your presentation for class presentation, but also a print-out version in overhead format (slides), in case no beamer is avail in class room…. You are free / encouraged to team up in pairs (2 individuals) to prepare the respective presentations, but not in groups (3 or more individuals) Grading will depend on the quality of hand-ins (50%) and on the effectiveness of your individual participation in classroom (50%) The course is intense and will require substantial amount of individual preparation
Literature
There is a vast amount of excellent literature on accounting and valuation available. I propose that you choose articles and books you feel comfortable with. As a preparation for the course I would suggest that you should become familiar with basic valuation techniques (especially benchmarking), income statement / balance sheet structures and the general investment process in private equity and venture capital.