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Investment Group Project Course Practical Investment Group Project Financial Institutions Spring 2018 1 General description The goal of the project
Investment Group Project
Course Practical Investment Group Project
Financial Institutions Spring 2018
1 General description
The goal of the project is to design a simple investment strategy using only stocks or ETFs in order to invest in the financial sector. You can also invest in insurance companies or mutual funds specializing in the financial sector. Each group starts with one million dollars of investment capital.
2 Deliverables
The main objective is to make as much money as possible within a given amount of risk. The deliver- able is therefore quite simple. It is a one-page summary containing:
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3 3.1
A short but clear and simple explanation of the strategy. The description should include the eco- nomic rational or the trading opportunity (if there is no economic rational behind the strategy). In all cases, it should be clear enough for you to risk your investment capital.
The equity curve of the strategy showing the daily P&L evolution as a function of time. Here the time is in days you are investing your money. So everyday you need to show how much money you made or lost.
The performance of the strategy showing the total gain in dollars and in percentage and the maximum drawdown during the investment period.
Investment strategy Investment universe
The investment universe is all the bank stocks that you can tarde from the US using publicly available data sources such as Yahoo or Google finance. You can also use ETFs, such as XLF which is the financial sector S&P 500 ETF. As stated previously, you can also invest in insurance companies or financial sector specialist mutual funds. This is a plain vanilla investment strategy. Therefore we will not use derivatives such as options or futures.
Where business is taught with humanity in mind Fixed-Income 1/2
