2011 Global Champions Politecnico di Milano Milan, Italy
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What is the CFA Institute Research Challenge? Worldwide
intercollegiate competition between teams of students Organized by
local CFA societies Analysis of a publicly traded company Interview
company management Mentoring by a CFA charterholder Research report
writing Presentation of research
Slide 5
2011 Research Challenge Network 2500 Students 546 Universities
1200 Industry Volunteers 102 Local CFA Societies
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2012 Tournament Diagram 91 LOCAL LEVEL CHALLENGES Asia-Pacific
Regional 19 Teams EMEA Regional 25 Teams Americas Regional 47 Teams
New York Regional 20 Teams Global Finals
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2011 Tournament Results
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Benefits for Students Learn best practices in research and
report writing Real-life learning experience as a Sell-Side Equity
Analyst Gain access and exposure to leading industry professionals
Professional report and experience can be featured on resume/CV and
on job interviews Experience presenting to top financial
professionals Individual and team prizes Opportunity for travel
(all expenses paid) Potential for media exposure Join a network of
over 5000 students & 2000 volunteers worldwide
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Participating Teams UniversityFaculty AdvisorMentor University
of Central MissouriDr. Arthur YoungJustin Brown Kansas State
UniversityDr. Scott HendrixGary Cloud Missouri State UniversityDr.
Jenny ZhangPeter Greig Pittsburg State UniversityDr. Kevin
BrackerJeff Hoernemann University of KansasDieter SchraderMatt
Norris University of Missouri-Kansas CityDr. John ClarkMichael
Fogarty
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Timeline TodayKick-Off Next 3 WeeksPreliminary Research
Following 2 WeeksQuestion Development November 7, 2011Company
Presentation January 31, 20121 st Draft Due to Mentor February 9,
2012Final Written Report Due InterimReport Grading February 25,
2012Local Final Presentations Week April 9 or 16Regional Final Week
April 9 or 16Global Final
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Rules Overview Teams of 3-5 students Only 1 team per University
Enrolled in school at time of kick off meeting Original work of
students No contact with company outside of organized events No
purchased or professional research reports may be used Mentors and
faculty may NOT contact the company Mentors and faculty may NOT
provide inside information or company reports Students, Mentors,
and Faculty all agree to the CFA Institute Code of Ethics and
Standards of Professional Conduct
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Advisor and Mentor Involvement Faculty Advisor Insight and
guidance on research methods and tools as taught in academia 10
hours of productive time maximum Access to faculty for other
projects unrelated to the Research Challenge is permitted All work
must be the original work of the students Industry Mentor Insight
and guidance on industry practice 6 hours of productive time
maximum prior to Written Report Face to face or virtual Company
management question development Review first draft of research
report Presentation development assistance
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Online Ethics Case Study Ethical Standards for Investment
Professionals: An Interactive Case-Based Course
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Sample Report
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Report Scoring Section Investment Summary Valuation Business
Description Other Headings Industry Overview & Competitive
Positioning Financial Analysis Investment Risks Total Maximum 20 5
15 20 15 100
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Presentation Scoring Section Argument Questions Financial,
Valuation & other Analysis Team Involvement Poise Materials
Total Maximum 25 20 15 10 5 100
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Subject Company Garmin - Creates navigation and communication
devices for the automotive, aviation, marine, fitness, outdoor
recreation, and wireless applications industries IR Packet, Company
Presentation, Follow-Up Conference Call for Questions MANY MANY
THANKS to Garmin Management!
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Interacting with Garmin Designated Officers ONLY Organized
Meetings ONLY Industry Mentor or Faculty Advisor must be present
for ALL student- Garmin interactions Students may contact company
suppliers, customers, vendors, etc.
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Comments from 2011 Challenge Teams not meeting deadlines
subject to elimination Must not change any formatting on the
Written Report (including size, font and colors) Grammar, sentence
structure, word use & argument logic are important Grammar,
sentence structure word use & argument logic Look at Written
Report, Presentation & Video of 2011 Winner Level of
competition is high Univ of Wisconsin research example Sensitivity
analysis and slides to support (hyperlinked slides) Support for
your thesis Dont simply trend forecasts revenue & expense
drivers Identify risks to investment thesis Presentation skills
must be polished and practiced Clarify questions being asked if
unclear
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Additional Resources Available
www.researchchallenge.org/Pages/educationalresources.aspx
Slide 21
Additional Resources Available
www.researchchallenge.org/Pages/educationalresources.aspx
Slide 22
Additional Resources Available
www.researchchallenge.org/Pages/educationalresources.aspx
Multimedia Resources
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Questions
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CFA Institute Research Challenge Team Brian Stype Manager
Amanda Quinn Program Coordinator Amy Strunk Administrator
www.researchchallenge.org email:
[email protected]
Slide 25
James A Reed II, JD, CFA Lead Portfolio Manager & Senior
Vice President Scout Investments Over 19 years of investment
experience Three years as a private attorney Has been a security
analyst, portfolio manager and director of research Bachelors
Dartmouth College Law Degree Washington & Lee University
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Logic & Sentence Structure Logic must be sound: Statement
used to support a hold rating: Although there are many concerns
with Great Plains, the company still maintains strong prospects for
the future. Use proper sentence structure: Overall, we think market
has overstated regulatory and environmental risks and undervalued
GSPs stock price. We believe it is irrational to trade GXPs stock
below its book value, which is significantly lower than its
historical book value. Go Back
Slide 27
Word Use & Grammar Proper use of words is important: In the
coming years, federal litigation will set out to enforce the
reduction of carbon emissions among fossil fuel burning facilities.
Poor grammar distracts the reader: Thus, the Gordon growth model
gave us a negative valuation, which is practically not feasible. Go
Back