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'Student Investor Challenge'

'Student Investor Challenge'

During the last four months, twenty-three Radley teams competed in the national IFS Student Investor competitions. Each team was given 100,000 pounds of virtual money to invest in the FTSE 100 or small caps. There were lots of challenges to combat: firstly, the volatile market and secondly windfall tax, which meant you had to have at least 85,000 pounds in stocks or be taxed 1,000 pounds a day. Amazingly, three Radley teams have reached the Semi-Finals by finishing in the top 250 out of nearly 8,000; these will take place later in February. 

 

Mr Glendon-Doyle decided to have an internal School competition which took place in the Coffee Shop on the fourth of February. Three of the most successful funds were selected to give a fifteen-minute presentation on their investment philosophy, macroeconomic approach and what they have learnt from the experience. They had to perform in front of an eager audience and an esteemed panel of judges, consisting of Mr.Cox, Mr.Woodling and Mr.Molyneux, who were given three hundred thousand pounds to invest in any of the following firms and could question their investment process. It was very similar to an episode of Dragons Den. 

 

The first team to give their presentation was CGMF Global. The entire team already looked like Asset Managers in their finely tailored suits and slicked-back hair. They spoke fluently and exuded confidence when telling the audience about their Mission Statement and the amount of research they put into every trade, emphasising how useful resources such as The Week and The Financial Times were to the success of the fund. CGMF Global outperformed the FTSE by nearly 10%, which is an outstanding achievement. Finally, they told the Dragons that their money would be placed into the Pharmaceutical sector and Defence sector because the fund believed these sectors were undervalued, having looked at P/E and D/E ratio and believe British Aerospace will give high dividend yields to their clients. The dragons seemed impressed with the first fund; however their questions were still very testing for CGMF Global. 

 

The next team to give a presentation was Azap Azoff, who told us they were inspired by Azap Rocky and Donnie Azoff from ‘The Wolf of Wall Street’, because they both had a sense of energy and optimism which was very similar to their Mission Statement of high risk high reward. Rufus Eyre gave an interesting analogy, saying stocks are like a beauty pageant: you don’t vote for who you think is the most beautiful, but who the others think are the most beautiful. Alex McGrigor then expressed how important keeping up to date with the news is in an active portfolio and used the example of buying BP. Azap Azoff used a very chartist approach and tried to buy everything at rock bottom in the hope the stock price will improve. They said their greatest strength as a firm was their honesty and ability to learn from previous mistakes, such as Aberdeen Asset Management and Sports Direct which lost them around 11,000 pounds. The Dragons then asked some very probing questions, Mr Woodling stumping Rufus Eyre with a question about why he thinks the price of platinum will increase just because it was at a yearly low. 

 

The final team, Hit or Miss, who came into the competition with little or no knowledge of the FTSE 100 ended up coming 12th in the entire country. This team had a very conservative approach, avoiding oil related companies and emerging markets as they believed these sectors were too volatile. The attention to detail within this team was very impressive with lots of facts and figures backing up their investments and even reasons not to invest. Going forward, Hit or Miss predict oil prices will stay low and think Taylor Wimpey and Vodafone will bring in big returns for the Dragons. The main thing these Removes learnt when competing against the FTSE was to be organised and work as a team, with everyone adding something different to the team. The Dragons wondered if this team were too conservative and maybe their money could be better spent in and ETF tracker. Also, Mr Molyneux questioned the Telecommunication sector, suggesting it was too competitive and Vodafone were in a weak position due to some new deals occurring.  

 

After all the presentations, it was up to the Dragons to decide where they would invest their money. Mr. Woodling said how much he enjoyed the evening and said each team should be proud of themselves. Mr Molyneux said the second team gave him more reasons not to invest than to invest and said how great a presentation CGMF Global had. However, Hit or Miss had the best Macroeconomic approach. Finally, Mr Cox emphasised how important it was for everyone to have a role in the group and thought Azap Azoff were too similar. In third place was Azap Azoff who received 50,000 of the £300,000. Only £10,000 separated first from second place. The winners were Hit or Miss who received £130,000 whilst CGMF Global could only manage 120,000. It was a brilliant finale to a fantastic evening. 

 

A huge thanks must go to Mr. Glendon-Doyle for organising the occasion and the great set of Dragons who gave up their Thursday evening to decide which team would get the trophy. 

 

The Business Correspondent: Ollie Martyn-Hemphill, F Social 6.1     

 

  

 

 

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