2008 Headlines
MBA Students Make Predictions Amidst Turmoil
Johnson School Hosts 7th Annual Stock Pitch Competition
October 28, 2008 | Ithaca, NY | In a year characterized by bank closures, bailout packages, and worldwide market fluctuations, the MBA Stock Pitch Competition at Cornell's Johnson School on November 5 – 7 will challenge the nation's top MBA students to develop stock valuations amid the chaos. This annual competition has become more competitive each year with top schools vying for one of 12 spots to show their valuation prowess to a panel of Wall Street experts.
Competing this year are Columbia Graduate School of Business, Cornell University's Johnson School, Dartmouth's Tuck School of Business, Duke's Fuqua School of Business, MIT Sloan School of Business, New York University's Stern School of Business, Northwestern University's Kellogg School of Business, the University of California at Berkeley's Haas School of Business, University of Maryland's R.H. Smith School of Business, University of Michigan's Ross School of Business, Wharton, and Yale.
"The current market crisis will need to be factored into the student analyses when they pitch stocks," commented Lakshmi Bhojraj, director of the Parker Center and organizer of the competition. "Much of the valuations on the individual stocks will need to factor in students' larger assumptions on the state of the economy and its outlook. We're looking forward to what these students have to say."
Fidelity Investments is the lead sponsor this year. Other sponsors include: Johnson School alumnus and private investor Jack Ferraro (MBA '70), Barclays Global Investors, CFA Institute, Wellington Management, and State Street Global Advisors. Sponsorship affords the right to send both a judge and a recruiter to the competition, which has become an opportunity for investment research recruiters to gain early access to top students from leading universities across the United States.
The competition has also provided an opportunity to bring a leading professional to the Johnson School to address the next generation of portfolio managers. This year the School is honored to have Harry Lange, the portfolio manager for Fidelity Magellan Fund, present the keynote address. Lange joined Fidelity in 1987 and over the years has managed Fidelity Select Automation and Machinery Portfolio (now known as Fidelity Select Industrial Equipment Portfolio), served as director of research for Fidelity Investments Far East in Tokyo, served as an equity analyst covering technology stocks, managed Fidelity Select Computers Portfolio, Fidelity Select Electronics Portfolio, Fidelity Select Technology Portfolio, Fidelity Capital Appreciation Fund, Fidelity Advisor Small Cap Fund and Fidelity Magellan Fund.
After a brief training session held by representatives from Capital IQ, FactSet, and Baseline (Thomson), judges will assign one common stock and a list of stocks from two different industries to the participating teams. Students will use the resources available at the Johnson School's Parker Center for Investment Research to decide whether to present a long (buy), neutral (hold), or a short (sell) recommendation on the common stock. For each of the two assigned industries, students must choose a company that they will pitch as either a long or short candidate. Teams will have until midnight on Thursday to prepare for the three presentations.
The preliminary rounds include presentations on the common stock and on one industry-specific stock on Friday morning. The field is narrowed to four finalist teams who present the other industry-specific stock after lunch on Friday afternoon. The announcement and presentation of awards will be made at 1:45 pm.
For more information on the MBA Stock Pitch Competition, please visit www.mbastockpitch.com.
