Portfolio Construction and Strategy Course
This course discusses “top down” approaches to portfolio construction and various strategies for constructing portfolios. It complements the space market analysis course which is a “bottom up” analysis within a particular market. Modern portfolio theory is reviewed and students use the NCREIF data to construct “efficient” portfolios. This is then contrasted with other portfolio construction strategies that may result in over-weighting or under-weighting different property types, geographic or economic areas, or other property and market characteristics. Of course, the analysis doesn’t stop when a portfolio has been constructed. As economic events unfold, the portfolio may need to be rebalanced and in some cases the strategy may need to be modified while still keeping within the “style” investors expect to be followed by the fund.