Renmin Team Wins 2019-2020 Investment Competition Performance Prize
On 12th May 2020, RMBS received an official notice from Yale SOM, congratulating that one of the two teams of RMBS MBA students, Team Alpha, has won the $3,500 Performance Prize in the 2019-20 Global Network Investment Competition, sponsored by the Yale School of Management’s International Center for Finance. It was the second consecutive year that a team from Renmin Business School won first place in the competition among 24 teams from 17 top business schools in 15 countries.
Certificate issued by Yale SOM for Team Alpha
The portfolio selected by the team Alpha in October 2019 achieved a gross return of 33.63% over the six months ending on April 30, while the Shanghai Stock Exchange Composite Index fell by 2.36% over the same period, giving Alpha a net return of 35.99%. The team’s portfolio included companies in the food, technology, media, pharmaceuticals, and alcohol industries. It was the second consecutive year that a team from Renmin won first place in the competition.
Group photo of Team Alpha: (from left to right)
Wang Yi, Ning Zhenxing, Yang Haiyan, Zhang Zhiwei, Li Lianglaing, An Kai
(They are first year students from part-time program, enrolled in 2019)
“Just like our team name, Alpha, we took a bold approach when selecting our stocks,” said Ning Zhenxing, a member of the team. “We combined quantitative and qualitative analysis to handpick the industries and stocks that had the potential to outpace the growth of the market.”
“Team Alpha” Stock-portfolio Performance
The team looked at events in the news to find target stocks. For example, an outbreak of a viral disease among pigs increased pork prices and boosted related stocks, Ning noted. “When selecting our stocks, we also got great help and guidance from our advisors in Renmin Business School,” he added. “We also had our moments of disagreements. But we debated and reached an unanimous conclusion.”
The runner-up was the Yale School of Management’s Big Brothers, which achieved a gross return of 24.75% as the S&P 500 fell by 4.11%, for a net return of 28.86%.
The Global Network Investment Competition also includes a Security Analysis Prize, in which the student teams pitch one of their portfolio selections to a panel of investment professionals. This year’s winner was a team of students from the University of Cape Town Graduate School of Business.
About the Sponsor:
The International Center for Finance (ICF) is concluding its sponsorship of the Global Network Investment Competition after five years. Previous winners of the Performance Prize have included teams from ESMT Berlin, the University of Indonesia, and the Haas School of Business at the University of California Berkeley.
Camino de Paz, managing director of global initiatives at Yale SOM, expressed her appreciation for ICF’s sponsorship of the competition since 2015, when it was conceived by William Goetzmann, Edwin J. Beinecke Professor of Finance and Management Studies and the ICF’s faculty director. “It’s a great example of a faculty-driven initiative,” she said. “Will suggested that it would be a great way to teach students in the network about markets in other countries—and it has been.”
One of the strengths of the Global Network is its ability to provide a platform for intellectual exchange, de Paz said: “I hope that another school in the network will be interested in sponsoring a similar competition that will bring together students with common interests across the network.”
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