Building Portfolios using the Portfolio Optimizer in NOTE: Bloomberg is only available in the Cutler Center

To create a custom portfolio of securities in Bloomberg, type: PBSK

Hit Page Fwd to advance to the screen to enter individual securities into the portfolio.

Here you can enter your securities by ticker symbols. For example, IBM

If you know the number of shares you wish to hold for each security, enter the number of shares in the Position column. You can enter the Unit Cost, which is the average amount paid for the security. If there is no number entered, Bloomberg defaults to the current market value.

Data Finder: Building Portfolios

Common Uses for Portfolios Portfolios allow a user to save a group of securities for later use, or monitor a group of investments’ overall exposure and performance. In this Data Finder we will focus on building a portfolio using both Bloomberg Professional and Baseline.

Fall 2005

Topics covered in this Quick Guide

• Building portfolios in Bloomberg Professional Using the Portfolio Optimizer in Bloomberg

• Building portfolios in Baseline Bu

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Create a Basket Name and a ticker so that you can save your portfolio in Bloomberg.

To rebalance your portfolio type in PBAL • Select option #1 to rebalance your portfolio. • Next select one of the four options below for rebalancing your portfolio and type 2 . This will run the rebal-

ance and save the changes to your portfolio.

To display your portfolio type in PD

The new weights are not in percentages so you need to calculate them. Using the PBSK function select your portfolio and view holdings. Click and drag over the weights in order to copy into Excel. Once you have pasted the weighting into Excel, sum the column. In the column to the right of the weights you want an equation that takes the weight divided by the summed weight total. If you absolute reference the summed total you can then drag down for all weights. The sum of this column should equal 100%.

Other Portfolio Functions in Display: Monitor: LPRT: Portfolio Under Current Client BLP: Bloomberg Launchpad PDSP: Portfolio Display PMON: Portfolio Monitor PRTS: Portfolio Performance over time PRTA: Portfolio Create Sort/Summary/Sector: Report Retrieval: PCMP: Portfolio/Index Comparison RPT: Retrieve & Monitor Reports PRPT: Custom Report Writer PRTS: Market Value Summary & Average

Rebalancing Portfolios in

Page 2 DATA FINDER: BUILDING PORTFOLIOS

Building Portfolios in NOTE: Baseline is only available in the Cutler Center.

To create a custom portfolio in Baseline, click on the QUEUE button located at the middle of the toolbar at the top of the Baseline Screen. This should open up a screen similar to the one shown below. Baseline has stored Queues available with set stocks (e.g. S&P 500). Next click on the top right Groups button. This should open a screen of Categorized Queues. Click on PERSONAL QUEUES.

Upload: This button allows you to upload your portfolio from a

Click on the Build button and a blue entry box will appear on the right side of the screen in the Working Queue area. (You may need to select Clear if Modify appears in place of the Build option.) Enter your desired symbols, one-by-one, pressing the Space Bar after each symbol is entered to move the blue entry box for-ward. Click the Save button. A blinking cursor will move to the first available line on the left. Enter a name for the queue and click the Save button again. Note: When the queue is successfully saved, the ticker symbols will turn from yellow to white and the queue name will turn green to show that the queue is both saved and selected. The Queue can now act as the feed for Report, Slideshow, Snapshot, Print and AutoPrint.

DATA FINDER: BUILDING PORTFOLIOS Page 6

Modifying your Portfolio in Recall the Queue that you wish to modify by double clicking on the queue’s name. Once it is loaded as the “working queue”, click on Modify. A blue box will appear around the first ticker.

Move the blue box (using the keyboard arrows) to the ticker you wish to modify. • To change a ticker, type over the symbol and hit enter. • To add a ticker, move the box to the end of the list and type in the new symbol and hit enter. • To delete a ticker, highlight it and hit the Delete key.

DATA FINDER: BUILDING PORTFOLIOS Page 6

Portfolios Functions in One of the benefits of having a portfolio in Baseline is that you can click on other tabs on the top toolbar and your portfolio will be applied to the various functions (e.g. “Snapshot”). It is easy to analyze your portfolio by utilizing the tools within Baseline.

Entering Portfolio Holdings in

Click on the Holdings button to open the Queue Holdings screen. The last closing price per share for each ticker will appear as the listed price. See screen below.

Click on the Space Bar button to enter holdings. This will load a template (blue entry box) where you can enter the number of shares. Type in the number of shares in the blue entry box for the first ticker in the list. Use the keyboard arrow keys to move the blue box or hit Enter to move vertically. Enter the Cost Per Share in the next Column. Use the Custom button or • Enter each line individually using the arrow keys or by hitting Enter. • Hit Alt + Insert to enter the Market Price as the Purchase Price for a single stock. • Hit Ctrl +Insert to enter the Market Price as the Purchase Price for all stocks missing a Purchase Price. • Hit Alt + L to clear all cost per share values. Enter data into other empty text fields, if needed. Click Close when completed and respond Yes when asked to save changes.

The Stephen D. Cutler Investment Management Center provides Babson stu-dents, faculty and alumni access to state-of-the-art information resources and technology currently used by investment professionals in the market place. The Cutler Center is home to the Babson College Fund (BCF) and reflects Babson’s commitment to provide Babson students “real world” educational experience. A sample of the market data services available include: Bloomberg, Thomson One Equity, Compustat, Baseline and many others. For more information about the Center’s programs and instructional offerings, please contact the manager of the Cutler Center, Cynthia Robinson, at (781) 239-5257. Horn Library

Babson College

Stephen D. Cut le r Investment Management Center & Horn L ibrary a t Babson Col lege

Cynthia Robinson, Manager Phone: 781.239.5257 Email: crobinson1@babson.edu Forbes Radclyffe Marsh, Undergraduate in Finance and Entrepreneurship Class of 2007 Phone: 781.239.6241 Email: fmarsh1@babson.edu