Hatter at National Investment Competition
June 13, 2014
Stetson University undergraduates have once again participated of the Institutional Investors All-America Student Analyst Competition. This year, Stetson University was represented by Jozsef Nemeth, pictured, junior finance major, participated as one of 700 students representing 34 colleges and universities from all over the United States. Nemeth, as well as other students throughout the years, have joined the contest through the investment class taught by Chris Tobler, Ph.D., associate professor of finance.
This year, Nemeth was ranked in the top five in the country in two categories, placing him higher than students from some of the top schools in the country.
“In the investment class I offer, part of the student’s grade is determined by their ability to use investment software and becoming familiar with trading strategies,” said Tobler. “Jozsef has been our top student for the last couple of years. He has been in the Roland George Investment Program (RGIP) as a junior, which is rare because it is usually reserved for seniors, and is currently working with RGIP Director K. C. Ma in his hedge fund.”
Participants managed a faux portfolio of investments amounting to $100,000 each in an environment representative of those used by professional traders. Every portfolio tracked the equity value, net asset value, and profits and losses on a daily basis, and marketing to all positions, as a prime broker would. Participants had to follow Regulation T, the Federal Reserve Board rule designating a 50 percent margin requirement on initial stock purchases. They were then free to trade in any of the seven industry sectors: Basic Materials, Capital Goods/Industrials, Consumer, Energy, Financial Institutions, Health Care, and Technology, Media & Telecommunications.
“The Student Analyst Competition was very interesting, as it allowed me to practice different stock-picking techniques and track my performance. I also saw it as an opportunity to prepare myself for the RGIP program that I was taking the following semester,” said Nemeth. “For both RGIP and any professional that sets target prices, it is key to prevent abnormal losses from irrational decisions.”
“The Student Analyst Competition allows our students to master the theories and strategies we teach them in class and apply them in the real world,” said Tobler. “It’s a great experiential learning component of our curriculum.”
by Michael van Oppen