Partners Healthcare By JOSHUA COVAL
FIN 433: Case Analysis - Partners Healthcare
The purpose of the case analysis is to provide you with the opportunity to apply the techniques and discussions in class to a real world situation. Take the case seriously. Write your analysis from the perspective of an employee at Partners Healthcare that must make a recommendation for the company to the deputy treasurer, Michael Manning.
Within your write-up, make sure to address the following points:
1. What is your recommendation for the optimal size and composition for the real-asset portfolio segment within the long-term pool? Why?
2. Exhibit 3 presents five different asset classes. One of your appendices should provide a description of the pros/cons associated with each asset class other than from a pure (empirical) risk and return perspective.
3. When comparing the three asset case (Exhibit 5a), the four asset case (Exhibit 6), the other four asset case (Exhibit 7) and the five asset case (Exhibit 8), how much does each of the "real assets" improve the potential opportunities for hospitals investing in the long-term pool? What are the important factors that determine the degree of improvement?
4. Is your recommendation robust to different scenarios or changes in the market?
• Empirical Analysis: Make sure your analysis supports your recommendation. While you may build on the earlier spreadsheets we have used in class for the group project, you must adapt the spreadsheet individually. Each person's work and decisions should be his/her own.
• Case Format:
Case write-ups should be no more than (2) pages in memo format, typed, double- spaced, 12 point font, 1inch margins. The number of appendices should not exceed five (5) pages. Staple everything together. Handwritten memos and/or appendices will not be taken into consideration for grading. Note: I do not grade by volume.
• Make sure you address the relevant issues, provide any assumptions you made to reach your conclusion, and support any analysis in the appendices.
• Clearly label each supporting appendix and reference, where appropriate, in your write-up. If you make no reference to an attached appendix, I will assume it is not relevant to your argument and therefore will not take it into consideration.
• Do not spend time in the write-up repeating facts contained within the case unless they are directly supporting your recommendation.
Number of pages: 2 (550 words)