Global Investment Research Challenge Where opportunity favors the prepared mind… Kickoff Meeting – Academic Year 2010-2011
2010 Champions University of the Philippines 2
What is it? • Intercollegiate Competition between teams of 3-5 students each • Students compete on: 1. Sell-Side Research Report of a publicly traded company 2. Professional presentation to an expert panel of judges 3
The purpose Teach best and ethical practices in equity research through a real-world experience to the next generation of investment professionals 4
Hosts Sponsored By: • CFA Institute www.cfainstitute.org Hosted By: • CFA Vancouver www.cfavancouver.com In Collaboration With: • CFA Victoria www.cfavictoria.com • Okanagan CFA Society www.membersocieties.org/okanagancariboo/ 5
Key Components Mentoring by Perform Interview academic & corporate company industry analysis management professional Write a sell Present to a side equity panel of expert research report judges 6
Global IRC Network Americas + New York: • 30 Challenges • 200 Universities Asia Pacific: • 16 Challenges • 140 Universities EMEA: • 14 Challenges • 90 Universities 7
2010 Winners’ Progression Diagram Global Investment Research Challenge 16 16 14 29 teams teams teams teams New York Asia Pacific EMEA Americas Regional Regional Regional Regional Challenge Challenge Challenge Challenge 59 LOCAL SOCIETY INVESTMENT RESEARCH CHALLENGES 8
Sampling of Participants Americas Asia Pacific • • Boston University The Chinese University • of Hong Kong Brigham Young University • • Fudan University Columbia Business School • • Monash University Faculdade de Economia – Brazil • • Singapore Management University Fordham University • • Harvard University Institute of Business Administration of Pakistan • • MIT Shanghai Jiaotong University • • NYU Stern School of Business University of the Philippines • University of Washington • Rice University Europe, Middle East & Africa • University of Arizona • Aalto (Helsinki) School of Economics • University of Virginia • Bocconi University • University of Southern California • Trinity College Dublin • Yale University • ESSEC , Paris • University of Edinburgh • London Business School • Rotterdam School of Management • University Gottenburg • University of Cape Town • Wroclaw University 9
Teams 10
Faculty and Mentor Involvement Faculty Advisor Charterholder Mentor • • Insight and guidance on Insight and guidance on research methods and tools industry practice as taught in academia • 6 hours of productive time • 10 hours of productive time maximum maximum • Face to face or virtual • Access to faculty for other • Company management projects unrelated to IRC is question development permitted • Review first draft of research • All work must be the original Report work of the students • Presentation development assistance 11
Subject Company Westport Innovations (TSX: WPT, NASDAQ: WPRT) is engaged in the research, development and marketing of high performance, low-emission engine and fuel injection systems that utilize alternative gaseous fuels such as natural gas, propane or hydrogen. 12
Interacting with Westport Innovations • Designated Officers ONLY • Organized Meetings ONLY • Mentor or Society Representative must be present for ALL student- Westport interactions • Students may contact company suppliers, customers, vendors, etc. 13
Student To Do List • Participation Agreement • Code of Ethics • Ethics Course • Student Registration http://girc.membersocieties.org/Page s/AllTeams.aspx 14
Tools for Students • CFA Institute Online Ethics Case Study • Mentor’s Advice • Professor’s Guidance • Public Arena • Other Challenge Webcasts • Textbooks • http://www.cfavancouver.com/Pa ges/BCIRC.aspx 15
Tools for Students • Equity Asset Valuation; Stowe, Robinson, Pinto, McLeavy; 2 nd ed, Wiley • Investment Valuation: Tools & techniques for determining the value of any asset; Damodaran; 2 nd university edition, Wiley • Valuation: Measuring & managing the value of companies; Koller, Goedhart, Wessels, 5 th ed university edition, Wiley Damodaran on Valuation; Damodaran; 2 nd edition, Wiley • 16
Rules • • Teams of 3-5 students, the Mentors and faculty may NOT same students throughout contact the company competition • Mentors and faculty may NOT • Enrolled in school at time of provide inside information or final presentation company reports • • Original work of students Students, Mentors and Faculty all agree to the CFA Institute • No contact with company Code of Ethics and Standards outside of organized events of Professional Conduct • No purchased or professional • No family members at subject research reports may be used company 17
Report Scoring Section Maximum Business Description 5 Industry Overview & 15 Competitive Positioning Investment Summary 20 Valuation 20 Financial Analysis 20 Other Headings 5 Investment Risks 15 Total 100 18
Report: Business Description • What to Include • Where it is, what they do, when was it founded • What Not to Include • Opinion about the company Report: Industry Overview & Competition • What to Include • Description, size, growth, key economic factors, related markets • Who are competitors and why 19
Report: Investment Summary • What to Include • Investment thesis • Summary of key analyses from other sections supporting the opinion • Summary of key contradicting analyses 20
Report: Valuation • Free Cash Flow Equity = • DCF equity = • Residual Income equity = • Market Comparables Average - P/E, Forward P/E, EV/EBITDA, EV/Revenue 21
Report: Financial Analysis • What to Include • Any analysis relevant to the valuation • Analysis of income statement (profitability) • Analysis of balance sheet (solvency) • Analysis of cash flow statement (liquidity) • Pro-forma financial statements 22
Report: Investment Risks • What to Include • Financial risks • Valuation risks (sensitivities) • Industry risks • Other qualitative risks 23
Presentation Scoring Criteria Maximum Argument 35 Questions 35 Team Involvement 15 Poise 10 Materials 5 Total 100 24
Timeline Today Kick-Off Next 2 weeks Preliminary Research Prior to Oct 13th Question Submission Oct 18th Westport Presentation Oct 19th Follow-up email to Presentation Interim Research and Develop Recommendation Dec 3rd Final Report Due Interim Develop Presentation Interim Report Grading Mar 3rd Presentation Apr 7th Regional IRC 25
Expenses Covered CFA Vancouver (Local Challenge - Presentation) • Economy Class Airfare for UBC Okanagan & TRU • Ferry for Vancouver Island-based Schools • Parking Provided • Meals Provided CFA Institute (Regional/Global Challenge) • Economy Class Airfare for students • Hotel Lodging for students and one sponsored guest (faculty advisor, industry mentor, or society administrator) • Group Meals 26
Questions Email: info@cfavancouver.com 27
Recommend
More recommend
