Understanding the correlation of your traded securities' BETA versus the entire market, is the first step towards professional risk management.
MODULE 2 - FINANCIAL STATEMENT ANALYSIS
Understanding the ebb and flow of a balance sheet and an income statement will give you a clear depiction of the company's financial viability. We will also analyze major deviations between quarterly/annual reports and compare historical figures.
MODULE 3 - RATIO ANALYSIS (PART I)
It is almost impossible to gauge why the majority of investors will pay $50 or $100 per $1 of a company's earnings in the future. Merely comparing a company's multiple against its peers is not sufficient. This module will focus on Liquidity, Leverage, Efficiency, Profitability, and Market Value Ratios.
MODULE 4 - RATIO ANALYSIS (PART II)
Assessing Book Value Per Share or Gross Profit Margin is great, but how do you benefit from knowing that information? In this module you will learn to make the necessary adjustments to couple it with position sizing and building an optimal portfolio.
MODULE 5 - DISCOUNT CASH FLOW ANALYSIS
Ratio analysis will give you an idea of a company's financial health, but a Discount Cash Flow (DCF) analysis will bring you closer to a value that a stock price should be trading at. At this point, you will know whether it is oversold or overbought.
MODULE 6 - HEDGING WITH ETF OPTIONS
A professional money manager doesn't really care about direction or the health of the overall market. Your job is to be able to adapt to any scenario and make the most profit in any environment. Hedging with options and inverse related securities will provide you with the safety net needed to tackle any market environment.
IS HEDGE FUND MANAGEMENT
If you have heard of Steve Cohen, Jim Simons, Ray Dalio, David Tepper, then you know that these men didn't achieve billionaire status by being average. This field dictates high intelligence level and obsessive passion for the markets.
Value Investing or Aggressive Growth?
The objective of any hedge fund is to make as much money possible in a shortest period of time in a safest possible way. Based on your investors' risk appetite, you should know if your primary goal is capital preservation or aggressive growth.
Technical Analysis takes a backseat.
We have never seen Warren Buffett talk about Technical Analysis, since he has a longer term objective on almost all the investments he makes with a 5-10 year horizon. Despite technical analysis providing short-term opportunities, it will not be your primary driver for building a portfolio.
Hedging with Options and Futures.
The term "hedging" means to be able to protect your portfolio against downside risk in any market environment. A long stock or ETF position can be offset with a short Option Put or a Futures contract and vice versa. But it gets more deeper than this when you find securities that have inverse relationships.
Obsessing over Overnight Risk
When one has open positions in a portfolio, their primary concern is "How much money will I lose or gain the next day at the market open?" As a hedge fund manager, you should obsess over computing what is the worst case unrealized loss you can experience the next day at the open. Even then, due to volatility or geopolitical issues, you can be WAY off. Your job is to immediately adjust the portfolio accordingly or do nothing to navigate the stormy seas in the most optimal way possible!