Date: 10th September 2016
Topic: Investment Analysis and Portfolio Management
Speakers: Karvy Stock Broking Ltd.’s
Arvind Vinjamoori, Fundamental Research Analyst.
Viplav Dhandhukia, Technical Research Analyst.
Syed Hasan Jafar, Research Analyst.
Arvind Vinjamoori opened the session amidst an auditorium full of PGDM students at VJIM, Hyderabad with his powerful presentation on Capital goods & Banking sector companies, ones that are listed on NSE & BSE. His talk primarily expanded and explained about the different techniques used in the valuation of different asset classes and also firms like DCF. He made it all further easy by talking about the three steps’ process, which can make the life easy for a portfolio manager by manifolds.
Arvind also gave the students measures of evaluating different investments of a portfolio, which included Sharpe & Treynor ratios, Jensen’s performance measure, Value at Risk (VaR). VaR became more of an interesting concept with Arvind. He explained it simplistically showing the need of VaR as a measure of risk of the investments, which estimates the maximum loss that can be borne by a portfolio.
Viplav Dhandhukia who worked as an analyst at Transgraph Consulting Ltd. for 2 years prior to his joining Karvy continued the lecture. He gave price forecasting on oil & oil seeds before zooming to the corporate clients like ITC, Parle Group. He emphasized on the myth that many people has, that Fundamental analysis is for a long term perspective, whereas technical analysis is only for a short term perspective.
His explanation led the students to a new learning that technical analysis can also be used for a long-term perspective. He explained about the Dow Theory- its tenets and defects and also the different types of charts, to represent price changes that include Line & Bar charts.
The third speaker was Syed Hasan Jafar, who is actively involved in technical & derivative analysis and giving equity recommendations to the clients of Karvy. He explained us about the Japanese Candle sticks, the most widely used chart in the current world economy to represent the price changes. He illustrated the unique features of this chart in comparison to the Bar chart and the Line charts.
Syed also mentioned about the Bullish Candlestick (stock is closed Higher than its Open) and the Bearish Candlestick (stock is closed Lower than its Open). The most interesting part of the presentation with Syed was when he illustrated the different patterns of candlesticks like Head & Shoulders and Cup &Handle. He also explained about the different oscillators like MACD & RSI.
The lecture was ended with an assignment given to the students to calculate the different parameters like Sharpe & Treynor ratios and Jensen’s Alpha.