BUS 304 — Why Stocks Move: A Framework for Understanding Market Behavior
Quarter: Fall
Instructor(s): Jay Sheth
Date(s): Oct 7—Nov 11
Class Recording Available: Yes
Class Meeting Day: Wednesdays
Grade Restriction: NGR only; no credit/letter grade
Class Meeting Time: 5:30—7:00 pm (PT)
Tuition: $500
Refund Deadline: Oct 9
Unit(s): 0
Status: Registration opens Aug 17, 8:30 am (PT)
Quarter: Fall
Day: Wednesdays
Duration: 6 weeks
Time: 5:30—7:00 pm (PT)
Date(s): Oct 7—Nov 11
Unit(s): 0
Tuition: $500
Refund Deadline: Oct 9
Instructor(s): Jay Sheth
Grade Restriction: NGR only; no credit/letter grade
Recording Available: Yes
Status: Registration opens Aug 17, 8:30 am (PT)
Why do stock prices fall after a strong earnings report, or rise on seemingly negative news? For many investors, the gap between a company’s fundamentals and its market price can be confusing and frustrating. In this course, you will examine how institutional investors interpret market behavior and make decisions.
Moving beyond basic financial ratios, you will focus on the idea of the “investment narrative,” the story that shapes expectations and drives capital flows, along with the catalysts that shift those narratives. Through historical case studies, you will analyze how stocks evolve across a range of common patterns, including high-growth companies with elevated expectations, steady compounders, defensive plays, cyclical businesses, turnarounds, and distressed situations. You will leave with a practical framework for understanding why stocks move the way they do, along with a more disciplined lens for evaluating portfolios and future opportunities.
Moving beyond basic financial ratios, you will focus on the idea of the “investment narrative,” the story that shapes expectations and drives capital flows, along with the catalysts that shift those narratives. Through historical case studies, you will analyze how stocks evolve across a range of common patterns, including high-growth companies with elevated expectations, steady compounders, defensive plays, cyclical businesses, turnarounds, and distressed situations. You will leave with a practical framework for understanding why stocks move the way they do, along with a more disciplined lens for evaluating portfolios and future opportunities.
JAY SHETH
Chief Investment Officer, Versaca
Jay Sheth has over 20 years of investing experience. He is the chief investment officer of Versaca, a family office, where he oversees more than $1 billion in public and private investments, and is the founder of Solaria Management LP, an investment partnership. He was a partner for 13 years at Appaloosa Management LP, where he led the fundamental equity and credit investing teams and managed a multibillion-dollar portfolio. He received an MBA from the University of Chicago. Textbooks for this course:
(Optional) Jack Schwager, Market Wizards: Interviews With Top Traders (ISBN 978-0887306105)