A student team from ESMT Berlin has won the Global Network for Advanced Management Investment Competition’s top Performance Prize.
Ten teams from throughout the Global Network for Advanced Management (GNAM) took part in the six-month contest, which challenged students to assemble and manage a stock portfolio from companies based in their home countries. The winning team had the highest risk-adjusted returns over the six-month period.
ESMT Berlin achieved a 46.37% return, far ahead of second-place finisher, Renmin University of China, School of Business, which had a 14.54% return.
"Thankfully, the German equity gods smiled on us with a nice return and even better timing," said Thomas Miller-Jones ’15, a former ESMT Berlin MBA student who was on the winning team. "If only this could happen in our personal trading accounts."
Miller-Jones said his entire team knew that with just a six-month investment horizon, volatility would be a big factor in stock performance. "Chasing big beta and a hammered global giant in Volkswagen, and designing a portfolio correlated to the German auto industry were our answers in lieu of looking for fundamentally discounted stocks that can sometimes take years to recover," he said.