Pick one of the following investing approaches:
1. Value investing
2. Growth investing
3. Momentum/reversals investing
4. Merger arbitrage
5. Earnings announcement drift
6. Analysts’ recommendations
Your written report should discuss your trading strategy; your portfolio composition; performance of your portfolio.
Your written report should follow this outline:
- Executive summary – one page maximum.
- Define your investment strategy.
- Provide empirical evidence to support your strategy. Your strategy should be research based. Cite some academic studies and explain in some detail what the researchers found and how they found it.
- Portfolio composition
- Discuss the stocks in your portfolio and your rationale for picking them. Give information on average size, beta, prior stock price performance, profitability, etc…
- You must show that the stocks in your portfolio fit with your investment strategy. For example, if you are a value investor, your stocks should be low P/E stocks.
- How did you achieve your position? For example, did you accumulate shares over time or buy all at once? How did you choose to liquidate your position?
- Portfolio performance
- How did the broad market perform over the competition period? What significant market-wide events occurred over the event period? How did this impact your portfolio and your chosen strategy?
- How risky was your portfolio? Quantify this with some specific risk calculations.
- Discuss the performance of your portfolio on a risk-adjusted basis? How did your portfolio perform?
- Portfolio commentary
- What trades did you get right?
- What trades would you do differently?
- Given what you know about market efficiency, were your profits/losses due to skill, luck, balance of risk and return, insider information, etc.?
|Due By (Pacific Time)
||11/22/2015 09:00 pm