faInvestments & Security Analysis Small Cap Portfolio Project
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
faInvestments & Security Analysis
Small Cap Portfolio Project
Spring 2021
Your job is to be an active member of a portfolio investment team. In this role you will assist and support other team members to develop and implement an investment strategy. Each team will be required to work together on a daily basis actively managing their investment portfolio in accordance with the portfolio investment objective. Responsibilities of each member include researching potential investments and purchase/trade investments, perform qualitative and quantitative analysis of the portfolio throughout the portfolio’s existence. The team will present their portfolio results including an analysis of your group’s performance and include an investment recommendation to potential clients.
Spring Requirements: Social Distancing
Due to social distancing, it is more critical than ever that you communicate clearly using email, texting, Teams etc. Each of you must communicate with your team member(s) on a regular basis.
Goal: Outperform the iShares Russell Small/Mid-Cap Index Fund (BSMAX)
Initial Balance: $600,000
Duration: 9 weeks
Portfolio Guidelines:
- Teams will contain two members; however, there may be need for one team of three depending on class size.
- Each team is expected to research and determine investment allocation by February 14, 2021. Each team must make their initial purchase on Monday, February 15, 2021.
- Each portfolio will initially invest $1 million in five small- to mid-cap stocks. Small cap is defined as companies with market caps between $300 million and $2 billion and mid-cap defined as companies with market cap between $2 billion and $10 billion.
- The stocks must be traded on one of the U.S. major exchanges: NASDAQ or NYSE. No ETF’s or other funds are allowed. Each stock must be from a different sector. The sectors include Materials, Industrials, Financial, Energy, Consumer Discretionary, Information Technology, Communications, Real Estate, Healthcare, Consumer Staples, or Utilities.
- At the initial onset, no one company must be less than 5% or greater than 25% of the portfolio value. You can increase/decrease the allocation during the nine weeks. Any material changes, such as selling your entire position in one stock and adding a new stock must be completed by the deadline listed below in the Timeline Summary section.
Timeline Summary:
- Tuesday, February 9, 2021: Team members declared and the team declaration form is filled out and submitted in Canvas.
- Sunday, February 14, 2021: Submit the Investment Choices and Allocation form.
- Monday, February 15, 2021: Teams will invest in their investment choices accordingly. This will take place outside of the classroom. Teams will either go into the lab or conduct trades remotely.
- Friday, March 19, 2021: Submit any changes made to the portfolio in Canvas using the appropriate form. If nothing is submitted, then the portfolio is to remain unchanged for the remainder of the semester. You can make changes prior to this date. All forms recording changes are due by this date.
- Friday, April 16, 2021: After the market closes, the portfolio challenge has concluded.
Project Deliverables Summary:
Friday, February 26, 2021
For each of your five stocks you must complete the following:
- Find out what the companies do and write a detailed description. Include any necessary information about the company that was part of your decision such as management, financials, industry, competition etc. DES<GO> MGMT<GO> FA<GO> RV<GO>
- What is the market capitalization of your companies? EV<<GO>
- This paper will require you to look at financial statements. You must also look at the annual report. FA<G0> CF<GO> 1OK
It is recommended that you segment your paper by company. A great deal of details are required for each company as you are expected to know your companies inside and out.
- Graph historical daily prices for the five stocks over the past 3 years. Discuss performance and the reason why one stock outperformed the other stocks and why one stock lagged behind. This will require you to look in the financials, industry, macro events, and related news articles or announcements. GP<GO>>>>Security/Study>>>Add security
- Rank your five stocks in order of risk. Explain why you chose this ranking. What is it about the business model, industry, management etc. that impacted your ranking? Consider the beta, standard deviation, business risk, financial risk, and economic risk. BETA<GO>. This should be a detailed paragraph or two.
Each team will provide a detailed write-up that should be a minimum of ten pages. The ten pages does not include graphs or charts. You should include graphs directly from the Bloomberg terminal or download the graphs into Excel. Please utilize the lab assistants, the Bloomberg Function Binder, and HELP. Bloomberg representatives are available 24-7 to chat with you regarding any questions that you may have regarding how to use the terminal or any of its functions.
Tuesday, March 19, 2021:
For each of your five stocks you must complete the following:
- An in-depth, fundamental analysis should be conducted. This will require you to look at the Balance Sheet, Income Statement, and financial ratios for your companies and compare to competitors and perspective industry.
- A discussion about your portfolio performance thus far and compare it to your benchmarks during this same timeframe. What has impacted the performance of an individual investment and the impact on the portfolio return. This could be company or industry specific, political, or economic conditions.
If you made changes to your portfolio, then this needs to be addressed as well. A detailed write-up regarding why you sold one stock and added a different one. A description of the new company and all relevant information is required. If no changes were made, discuss why you decided not to replace your lowest performing stock.
Each team will provide a detailed write-up that should be a minimum of twelve pages. The twelve pages does not include graphs or charts. You should include graphs directly from the Bloomberg terminal or download the graphs into Excel. Please utilize the lab assistants, the Bloomberg Function Binder, and HELP. Bloomberg representatives are available 24-7 to chat with you regarding any questions that you may have regarding how to use the terminal or any of its functions.
Tuesday, March 30, 2021:
- Each team will prepare a professional memorandum to be distributed to clients (classmates). It should be no longer than one page in length.
- The team needs to decide what information should be included. Choose which information is most critical. Keep in mind the purpose of the memorandum is to keep potential clients informed about the portfolio and relay confidence in your ability and the portfolio performance. Feel free to include a graph within the body of the memorandum to help deliver your message to the clients. If you choose to include a graph or table, then it should be no larger than 1.5 inches in length.
- Be prepared to address the class regarding your portfolio as well as answer questions.
Friday, April 30, 2021:
- Each team will submit their final portfolio project. All teams will analyze their portfolio. The team will submit a twenty to twenty-five page paper (not including graphs, charts, or SWOT) detailing their investment thesis, portfolio value, return for the holding period and projected annual return for both the portfolio and for the iShares Russell Small/Mid-Cap Index Fund (BSMAX), along with the portfolio beta, asset allocation(equity and small vs mid-cap), industry allocation, and a detailed financial analysis of the main holdings of the portfolio.
- The financial analysis should include key items from the Balance Sheet, Income Statement and include financial ratios. Comparisons to the industry and competitors are key to this analysis. ROA and ROE should be broken down using the Dupont Equation for analysis.
- All papers should contain a SWOT analysis for the portfolio.
- Final papers will include an overview of the industry and business operations of their main holdings. The reasoning behind these investment choices should also be addressed.
- How did the team’s portfolio perform in comparison to the benchmark? How did current market conditions impact your portfolio performance? Which investments made a significant contribution to your portfolio returns and why? Which investments were bad choices in hindsight and why?
- All papers should be free of spelling errors, have a minimum of four graphs/charts and include an appendix listing all sources. The paper will not be graded on portfolio performance but on content and detail.
- Your paper should include an investment recommendation to your potential clients. The recommendation should be ethical by being in the best interest of your client by making a case for or against your expertise as an investment team. You must defend your recommendation.
- The format of the paper should be segmented with appropriate titles. It should be broken down by company (Company Description, Management, Financial Analysis, Portfolio Performance, Economic Conditions etc.).
- The portfolio earning the best return will earn the highest bonus. Other portfolios will receive a smaller bonus for beating the benchmarks. There will be no bonuses available to portfolios returning less than the benchmark.
May 4, 2021- May 11, 2021
Each team will prepare a 10 to 15-minute PowerPoint presentation detailing the portfolio. All presentations will take place over Zoom. Presentations are expected to be professional. You will be addressing clients! All presentations must be uploaded into Canvas by on November 24, 2020. No changes may be made to the presentation after it has been submitted.
Grading:
Initial Paper (Due: 2/26/21) 20%
Follow-up Paper (Due: 3/19/21) 20%
Memo (Due: 3/30/21) 10%
Final Portfolio Presentation & Paper (4/30) 50%
Bonus Structure
Top Performing Portfolio 5 extra points on final paper
Beat the Benchmark 3 extra points on final paper
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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