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{{Short description|Financial professional}}
A '''portfolio manager''' ('''PM''') is a professional responsible for making [[investment]] decisions and carrying out investment activities on behalf of vested individuals or institutions.
▲A '''portfolio manager''' is a professional responsible for making [[investment]] decisions and carrying out investment activities on behalf of vested individuals or institutions. The investors invest their money into the portfolio manager's [[Investment policy statement|investment policy]] for future fund growth such as a [[Pension fund|retirement fund]], [[Financial endowment|endowment fund]], education fund, or for other purposes.<ref>{{Cite book|title=CFA Institute Level I: Corporate Finance & Portfolio Management|last=Conroy|first=Robert M.|publisher=|year=2014|isbn=|location=|pages=237}}</ref> Portfolio managers work with a team of analysts and researchers, and are responsible for establishing an investment strategy, selecting appropriate investments, and allocating each investment properly towards an [[investment fund]] or [[asset management]] vehicle.<ref>{{Cite news|url=https://www.investopedia.com/terms/p/portfoliomanagement.asp|title=Portfolio Management|last=Staff|first=Investopedia|date=2003-11-25|work=Investopedia|access-date=2018-10-20|language=en-US}}</ref>
== Model ==
In the 1950s, [[Harry Markowitz
</math>
where:
* er = expected returns▼
*rf = risk free rate▼
* <math>\mu_i =
* rm = expected market returns▼
* β = risk measure▼
* <math>r_f =
* <math>\mu_M =
* <math>\beta_i =
== Investors ==
The goal of an investment manager is to earn a greater return than the return expected given the level of [[Risk management|risk]]. This return can be monitored by investors through weekly, monthly, quarterly, or yearly performance reports that are shared by the
Institutional investors include [[
== Portfolio managers and investment analysts ==
Portfolio managers
Portfolio managers are presented with investment ideas by internal buy-side [[business analyst|analyst]]s and sell-side analysts from [[investment bank]]s. It is their job to sift through the relevant information and use their judgment to buy and sell [[Security (finance)|securities]]. Throughout the day they read reports, talk to company managers, and monitor industry and [[Economic indicator|economic trend]]s, looking for the right company and time to invest the [[Portfolio (finance)|portfolio's]] [[Financial capital|capital]].<ref name=":0" /><ref name="proshares" />
A team of analysts and researchers are ultimately responsible for establishing an investment strategy, selecting appropriate investments, and allocating each investment properly for a fund or asset
In the case of mutual and [[
▲A team of analysts and researchers are ultimately responsible for establishing an investment strategy, selecting appropriate investments, and allocating each investment properly for a fund or asset-management vehicle.<ref name=":0" />
=== Insider trading ===
▲In the case of mutual and [[Exchange-traded fund|exchange-traded funds]] (ETFs), there are two forms of portfolio management: passive and active. [[Passive management]] simply tracks a market index, commonly referred to as indexing or index investing. Active management involves a single manager, co-managers, or a team of managers who attempt to beat the market return by actively managing a fund's portfolio through investment decisions based on research and decisions on individual holdings. [[Closed-end fund]]s are generally actively managed.<ref>{{Cite web|url=https://www.etf.com/etf-education-center/21036-active-vs-passive-the-case-for-and-against-index-funds.html|title=Active Vs. Passive: The Case For And Against Index Funds {{!}} ETF.com|website=www.etf.com|language=en|access-date=2018-10-20}}</ref>
A portfolio manager risks losing his past compensation if he engages in [[insider trading]]; in fact, lawyers at the law firm Davis & Gilbert wrote in an article in a 2014 article in ''Financial Fraud Law Report'' that: <blockquote>"Based upon courts current application of New York's [[faithless servant]] doctrine, it is virtually certain that if ... hedge fund ... managers engage in wrongdoing ... those .. managers will be forced to disgorge all compensation received during the period the wrongdoing occurred".<ref>
In ''[[Chip Skowron|Morgan Stanley v. Skowron]]'', 989 F. Supp. 2d 356 (S.D.N.Y. 2013), applying New York's [[faithless servant]] doctrine, the court held that a hedge fund's
== Systems ==
The [[IT]] infrastructure for a
==See also==
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