ABSTRACT

Portfolio management, by its very nature, is a continuous, on-going, iterative process. There is no real temporal distinction between defining, constructing, executing, and monitoring your portfolio. It’s definitely not a kind of so-called “waterfall” process, in which you would go from step A to step Z, following a predefined sequence. Portfolio management is more of an “agile” process, with permanent adjustments and measurements made during each rotation of the model and feeding the realignment executed in the next cycle. Managing your portfolio consists in fact of elaborating your strategy, executing it, measuring the achievements, and realigning what needs to be realigned (see Figure 7.1).