City trading skills put to the test
City economics team come third in trading competition.• by Hollie Jenkins
A team of undergraduate economics students from City University London have been awarded third place in the University Trading Challenge (UTC) 2011, held at Coventry University in December 2011.
The University Trading Challenge is open to full-time students in Finance and Economics programs at any university across the UK and focuses on getting students to demonstrate how the knowledge they have gained at University can be put into place when dealing with a real-life financial scenarios.
The City team included first year economics students Jannik Hercksen and David Anzolin, alongside third year financial economics student Derrick Gachiri, third year economics and accountancy student Jayson Jayerajah and third year economics student Luiza Sultanova.
As a part of the competition all teams were judged on three main components; their ability to manage a long-term portfolio, short term trading and a presentation.
Jannik from the City team says that the long term portfolio challenge was particularly exciting:
"We had to construct and manage a long term portfolio consisting of eight assets over a period of a month. Simulating a real trading environment, we demonstrated how we would manage eight assets to make a profit of over $6.4 million."
During two short-term trading simulations the team were tasked with individually trading three assets over a period of 30 minutes, representing a full trading day.
Finally a presentation was given by the team demonstrating their ability to identify the risks faced by a mining company, find hedging solutions for those risks and provide a graphical scenario analysis showing the impact of the hedges across a number of positive and negative market outcomes. They also had to put forward a proposal for funding a new mine in Australia.
Derrick says it was fantastic to receive positive feedback from the competition judges on the team's presentation skills.
"We came first in the presentation component of the competition. The judges said they were particularly impressed with our analysis and presenting skills and would offer us jobs if they could given our professionalism, as the case study we presented on was directly related to a real life situation."
Jayson summed up the overall experience of the tournament for the team, as he was elated with the outcome.
"We were thrilled to receive third place and it is good to know that the skills we have gained at University will stand us in good stead once we graduate and are seeking a career in the financial sector."