The Saint Mary’s team earned eighth place for Canada in the 2023 Bloomberg Global Trading Challenge
Saint Mary’s University students gained valuable real-world experience that will help propel them into careers in capital markets and investment banking, by participating in the 2023 Bloomberg Global Trading Challenge. The Saint Mary’s team, comprised of students in the Sobey School of Business, finished eighth in Canada, 42nd in North America and 113th in the world out of 2,007 teams.
Teams from 309 universities and business schools faced the same challenge: use Bloomberg Terminals to invest $1 million virtual USD and be ranked on the profit/loss margin. “We were nervous,” says Master of Finance student Ifrahim Iftikhar. “We did not want to lose the $1 million (virtual) in the first two or three weeks.”
Team Captain Rehan Habib and the team members Nancy Naadei Kotei-Sass, Ryan Macalalad, Suja R.J. Vikas and Ifrahim Iftikhar are all from the prestigious Master of Finance program. They taught themselves how to use the Bloomberg Terminals from online videos and other resources provided by Bloomberg Education.
Influenced by world events, the students initially took a defensive position and followed a safe 60/40 diversification strategy focused on U.S. stocks, but soon found they were only matching the WLS index (Bloomberg World Large, Mid & Small Cap Price Return Index) which was underperforming at the time. They needed a change in direction to maximize returns over the short, six-week span of the competition.
“Our diversity was a distinct advantage, says Rehan Habib. “ With team members from several countries including India and Pakistan, we had multiple perspectives and important sector insights.”
“We identified that the Indian stock market was doing extremely well, and the Pakistan market was at a historic high,” explains Suja Vikas. “We analysed the market and decided collectively how much risk we could take.” The strategy succeeded and the team secured a $65,000 lead by the competition's end.
Faculty mentor, Dr. Florian Muenkel, says that the competition is particularly valuable for the students studying in the Sobey School of Business. “It’s practical experience. Students learn how to take a large set of assets and identify which ones have the best potential. They learn that we are all exposed to behavioural biases, and they learn how to overcome them. At the same time, they browse the news and consider macroeconomics and political risk.”
He notes that the Saint Mary’s team was successful due to teamwork—they were able to divide up the tasks and make decisions. “You have to rely on your team; they worked well together.”
Nancy Naadei Kotei-Sass says, “I learned a great deal—how to handle the Bloomberg Terminal and how to trade. Trading in a short period requires a lot of strategies because the market can be your friend today and an enemy tomorrow.” Ifrahim Iftikhar expressed a similar sentiment. “We found that good news such as strong company performance did not necessarily translate into a stock price increase. There were other factors at play. It was an eye-opener.”
Ryan Macalalad says, “The mentorship of faculty members, Dr. Florian Muenkel and Dr. Rahman Khokhar, extended far beyond the four walls of the classroom, inspiring us to explore our potentials as traders, face challenges and strive for excellence. Their encouragement and advice throughout the trading challenge was instrumental in the team’s success."
8,400 students across 38 countries competed in the 2023 Bloomberg Global Trading Challenge, testing their skills in investing $1 million virtual USD. The global event is supported by the research and analytics team at Bloomberg for Education.
The Bloomberg Global Trading Challenge tests students annually on generating the highest relative profit and loss return (P&L) via Bloomberg Terminals. Each team is accompanied by a faculty advisor.