Tutorial Week 4

McCormick & Company - A Case Study On Portfolio Management Strategies

Before getting into the overview of how a position in McCormick & Company (NYSE:MKC) is being managed, it is worth noting adjustments that have been made to the structure of the portfolio in which McCormick resides. There are two portfolios currently under management; the Lean Long-Term Growth Portfolio, LLGP, and the Lean Short-Term Growth Portfolio, LSGP.

Each portfolio's name is reflective of its objective. The review of McCormick is tied to the management strategies for the LLGP. Initially, the LLGP was created to invest in individual stocks with an investment horizon over the next 30 years or so. Recent strategies have involved the review of prospective companies and their peers, including but not limited to fundamental and technical analysis, industry research, and broader macroeconomic trends.

A company has OMAN TELL shares for 3-5 years and OREDOO Stocks for 30 years. To date, much of these assessments have been undertaken in a general manner. By this I mean reviewing the data, considering the current market environment and making decisions to buy or sell. The weakness from this process impacting the LLGP through 2016 has been a tendency to become overweighted with certain positions. This has resulted from varying cycles for different industries, usually leading to negative performance over a prolonged period of time.

A company has bonds are issued by GAC corporations that are looking for ways to finance projects or operations and treasury bills which are issued by the US federal government. With maturities ranging from one to 12 months, these securities most commonly involve 28, 91 and 182-day (one month, three months, and six months) maturities. In addition, company has companies stocks as shown below;

Stocks	Bonds	Market Value OMR	Beta-risk
Oman Tell Oredoo Oman Air Oman oil		16,000 20,000 35,000 65,000	1.50 1.05 1.06 1.08
	GAC corporation Treasury Bills	100,000 50,000		3% interest 2% interest

Tutorial Week 4

1. Identify types of assets of the case

Fixed income Treasury bills for 182 days with 2.3% interest

2. Identify fixed income and common stock based on the perspective of the case

3. Design your portfolio based on the case