Transcript Ithaca Today - Core Trading Consultants
Saturday, April 13th, 2012
Ithaca Today
Core Trading Consultants
Who are the CTCs?
The Fund
Manage the ICIC mutual fund – $20,000 assets under management Facilitate the advancement of understanding with regards to equity research and asset management Share work experiences to aid in the memberships’ preparation for professional development
A Presentation in The Trading Room The Room
Gain familiarity with technology available in the Trading Room Provide training to members of the Ithaca College community who may be curious about the software or who may need it for academic endeavors Ensure that the technology is maintained and respected
The People
Connect past CTC members to the current general body in order to continue a legacy of excellence and to propagate pragmatic approaches used in a professional setting Cultivate new relationships with alumni outside of the CTC network to develop the fund’s rapport and integrate outside perspectives Foster camaraderie between students, faculty, and administration
CTC Structure & Operations
Executive Board Senior Analysts Junior Analysts General Body Members
Executive Board:
Oversees direction, education, and management of members and mutual fund
Senior Analysts:
Liaison between board and JA/GBM
Junior Analysts:
Provide the research that is the backbone to the organization
General Body Members:
Learn about the markets, prepare for possible positions above
CTC Structure & Operations
Energy & Utilities Industrials & Materials Consumer Discretionary & Consumer Staples Health Care Financials Technology & Telecom
General Body Meetings
Brain Teaser
We strive to prepare members for encounters they will face in the world of finance, specifically the job market A brain teaser is a common interview tactic which is used to assess a candidate’s analytical reasoning and ability to think creatively
If you look at a clock and the time is 3:15, what is the angle between the hour and the minute hands?
Market Update
Understanding the implications of global events is an integral part of proper equity analysis Here we discuss what market moving news has hit headlines in the last week and what this could mean for markets in the future
The U.S employment numbers for were flat, what effect has this had on the market and what could this say about the state of the United States economy?
Portfolio Update
Analyze the impact of recent news on the fund’s holdings from both the perspective of immediate capital gains or losses and its effect on the original investment thesis Determine how each sector within the portfolio is performing and relate such performance to macroeconomic factors Compare the portfolio’s performance to the benchmark and assess appropriate courses of action
Apple released its latest iphone . Here is the market’s reaction, does this effect our investment thesis?
Special Topic/Industry Group Presentation
CTC is a student run organization and as such we incorporate the interests of our members into our presentations Past discussion topics have included hedge funds, M&A, derivatives, and unilateral pairs trading This is also an opportunity for an industry group to pitch investment ideas or give sector-specific updates – Buy or Sell presentations are voted on to determine the allocations of the fund’s capital
Industry Group Meetings
Specialize
Industry groups provide an opportunity for students to become proficient in the nuances of their sector Usually between 4 & 6 people, these groups also enable the development of knowledge in a more intimate setting In becoming sector specialists, members work closely with Senior Analysts to familiarize themselves with the players in the sector, as well as the macro factors which are likely to influence performance,
Screen
An objective investment process requires each group to take a universe of equities within their given sector and whittle it down to one ideal investment The criteria of such a screening process can include size, recent performance, prospective growth opportunities, and the estimated position in the business cycle
Analyze
Committing capital and taking partial ownership of a company requires substantial due diligence An industry group will critically analyze each facet of the company’s operation, including its management team, lines of business, geographic presence, product margins, market saturation, and other company specific factors The group must ultimately formulate an investment thesis which defines and provides a rationale for a price target but also demonstrates an understanding of the associated risks
Pitch
Following the proper analysis, the industry group presents their findings to the general body This serves as an opportunity for members to voice their opinions and provide new perspectives on the proposed investment Members of the group must be prepared to answer questions and defend the rationales for their price target Ultimately, stakeholders determine by majority whether the fund should allocate capital to the idea
Center for Trading and Analysis of Financial Instruments
Hardware
The Trading Room houses 44 dual-monitor work stations which facilitate access to the multitude of resources that are necessary for in-depth financial analysis Overhead, a live digital ticker tape streams real-time quotes for the members of the S&P 500 Index To the right, an index screen displays the performance of global markets, members of the Dow 30, and subsectors of the Nasdaq Composite Index Three projectors create an interactive learning environment which allows students to follow the instructor’s examples and directions
Software
Each work station is outfitted with top-of-the-line analytical software including Morningstar, ThomsonOne, Datastream, Palisade@Risk, and Valueline Most notably,10 work stations are equipped with a Bloomberg Terminal – Streams real-time global news from multiple third-party sources – Provides a wealth of analytical capabilities for equity and fixed-income products, as well as numerous alternative asset classes – Enables access to research from both Bulge Bracket and Boutique Investment Banks