Portfolio Control

Advanced portfolio construction, risk management, and performance attribution. Build institutional-grade portfolio management systems with proper governance and reporting frameworks.

50 Hours Content
10 Modules Curriculum
Vol I: 11-14 Source
QPE Prep Certification
PREREQUISITES
Decision Systems Course DSF Certification (recommended) Python/pandas proficiency Linear algebra fundamentals

Course Modules

MODULE 1
Portfolio Optimization
Mean-variance optimization with real-world constraints. Transaction costs, turnover limits, and sector bounds.
  • Quadratic programming
  • Constraint specification
  • cvxpy implementation
MODULE 2
Black-Litterman
Combining equilibrium returns with investor views. Prior construction, confidence calibration, and posterior optimization.
  • Equilibrium prior
  • View specification
  • Uncertainty calibration
MODULE 3
Risk Parity
Equal risk contribution portfolios. Risk budgeting, inverse volatility weighting, and HRP alternatives.
  • Risk contribution
  • Marginal risk
  • Hierarchical clustering
MODULE 4
Factor Models
Factor-based portfolio construction and risk decomposition. Fama-French, Barra, and custom factor frameworks.
  • Factor extraction
  • Factor timing
  • Risk decomposition
MODULE 5
VaR & Expected Shortfall
Risk measurement for regulatory and internal purposes. Parametric, historical, and Monte Carlo approaches.
  • VaR methodologies
  • ES and coherence
  • Backtesting
MODULE 6
Stress Testing
Scenario design and portfolio impact analysis. Historical replay, hypothetical scenarios, and reverse stress testing.
  • Scenario construction
  • Correlation assumptions
  • Reporting frameworks
MODULE 7
Brinson Attribution
Performance decomposition into allocation, selection, and interaction effects. Multi-period linking and geometric methods.
  • Brinson-Fachler
  • Multi-period linking
  • Smoothing algorithms
MODULE 8
Factor Attribution
Factor-based performance decomposition. Separating factor timing from security selection skill.
  • Factor exposure
  • Factor return
  • Residual alpha
MODULE 9
Risk Limits
Designing and monitoring risk limit frameworks. VaR limits, drawdown limits, concentration limits, and breach protocols.
  • Limit calibration
  • Breach escalation
  • Limit aggregation
MODULE 10
Production Systems
Building production portfolio management systems. Data pipelines, rebalancing engines, and reporting automation.
  • Data architecture
  • Rebalancing logic
  • Audit trails

Technical Stack

Python
Primary implementation language
pandas/numpy
Data manipulation
cvxpy
Convex optimization
pyfolio
Performance analysis
Decision Lab
Interactive simulations

Build Institutional Portfolios

Portfolio Control prepares you for the QPE certification and provides the skills to build production-grade portfolio systems.

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