ØABED4900 Portfolio Management Course description

The Portfolio Management course connects financial theory with real-world investment management practices. We begin with a concise review of portfolio theory and asset allocation before examining active management techniques that blend security analysis and investor views to achieve optimal diversification. Next, we examine how an investor’s time horizon influences rebalancing strategies. Building on this foundation, we turn to factor investing—identifying and capturing drivers like value and momentum across global equity and fixed-income markets. We then explore international diversification, including country- and currency exposures.

We will discuss the Norwegian Pension Global Fund as a real-world example of large-scale, long-horizon portfolio management, illustrating how theoretical concepts are applied in practice. The course also examines hedge fund strategies and alternative assets, including private equity, real estate, and commodities. The course concludes with some legal and ethical aspects in portfolio management. Throughout the course, Excel-based exercises (or comparable software) ensure students develop the skills needed to design portfolios and assess their performance in any market environment.

Language of instruction is English.

ØABED4001 Corporate Finance, ØABED4600 Investments

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has:

• Advanced knowledge of central theories, models, and methods in portfolio management, including diversification, asset allocation across asset classes, and optimization techniques
• Specialized knowledge of active vs. passive management approaches, factor investing, and quantitative portfolio strategies.
• In-depth understanding of risk measurement and management techniques, including performance attribution, stress testing, and scenario analysis.
• Comprehensive insight into alternative assets, hedge fund strategies, and cross-border diversification, including currency exposures.
• Critical awareness of ethical, legal, and sustainability considerations in professional portfolio management practice.

Skills

The student is able to:

• Apply advanced quantitative methods and financial theories to design, construct, and evaluate multi-asset portfolios.
• Critically analyze and interpret financial data and research, using it to formulate and defend evidence-based investment strategies.
• Integrate security analysis with asset allocation models to optimize risk-adjusted performance.
• Assess and manage practical challenges such as liquidity constraints and leverage in portfolio construction.

General Competence

The student can:

• Identify, analyze, and propose solutions to complex portfolio management challenges faced by institutional and private wealth managers.
• Communicate effectively in professional and academic settings, mastering the terminology and analytical frameworks of portfolio management.
• Engage in informed dialogue with both specialists and non-specialists, presenting analyses, strategies, and conclusions with clarity and rigor.
• Demonstrate professional responsibility by integrating ethical and legal considerations into investment decision-making and portfolio design.

The teaching takes place through a combination of on-campus attendance and online instruction. There will be a set of voluntary exercises which will be reviewed by the course lecturer

The following coursework requirement must have been approved for the student to take the exam:

• Coursework 1:

A written report (8 -10 pages). The report consists of exercises and a small empirical analysis. Students work in groups of 3-5 students (depending on class size).

The aim of the coursework is to deepen the understanding of the theories and methods covered in the course and apply them to real-world problems.

The required coursework must be completed and approved by the given deadline for the student to take the exam. If the coursework requirement has not been approved, the student will be given one opportunity to submit an improved version by a given deadline.

The exam in the course is a supervised exam of 4 hours.

The following aids are permitted:

• Calculator (see regulations for the use of calculators in the program description)

Grade scale A – F

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.