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Publications
  • June 2023 (Revised April 2025)
  • Case
  • HBS Case Collection

Optimalen Capital

By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
  • Format:Print
  • | Language:English
  • | Pages:6
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Abstract

A new client portfolio manager at a quantitative investment management firm must explain why her firm, Optimalen Capital, has rebalanced a client portfolio with a set of trades that seem unintuitive. In particular, Optimalen has added to its position of Walmart (ticker = WMT) and reduced its position in Tesla (TSLA) despite the latter having a much higher forecast return. She also must compute breakeven returns for two other stocks, Exxon Mobil (XOM) and Duke Energy (DUK).

Keywords

Investments; CAPM; Capital Asset Pricing Model; Investment Portfolio; Asset Pricing

Citation

Baker, Malcolm, Elisabeth Kempf, and Jonathan Wallen. "Optimalen Capital." Harvard Business School Case 223-099, June 2023. (Revised April 2025.)

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