Official Rules - The University of Tulsa
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Official Rules

Contents

1.0 Introduction And General Provisions
1.1 Conflicts of Interest and Insider Information
1.2 Plagiarism
1.3 Participant Information
2.0 TEAMS
2.1 Team Composition and Member Requirements
2.2 Research
2.3 Presentations
3.0 COMPETITION PARTICIPANTS AND ROLES
3.1 Faculty Advisor
3.2 Business Contacts
3.3 Virtual Tournament Industry Representatives
3.4 Industry Representatives
4.0 COMPETITION LOGISTICS AND AWARDS
4.1 Registration
4.2 Submission package
4.3 Virtual Tournament Schedule
4.4 Presentation Schedule
4.5 Awards
Appendix A – Investment Portfolio Challenge Guidelines
Appendix B – Presentation Scoring Sheet

 

1.     Introduction And General Provisions

 

The University of Tulsa Investment Portfolio Challenge charges university-sponsored teams with assessing a legacy investment strategy for a hypothetical $6 mm investment portfolio.  Teams are asked to modify the strategy in light of current and prescribed forecast economic environment with focus on: (i) sector weighting according to Global Industry Classification Standard (“GICS” ®) sectors; (ii) individual stock selection, and (iii) liquidity management.  The University of Tulsa’s Collins College of business hosts and administers the University of Tulsa Investment Portfolio Challenge at the local level; however, the 2024 competition allows for virtual competitors regionally, nationally and globally. Any questions or uncertainties pertaining to the Official Rules of the University of Tulsa Investment Portfolio Challenge should be directed to tally-ferguson@utulsa.edu.

1.1    Conflicts of Interest and Insider Information

Students, Administrators, Faculty Advisors, Business Contacts and Industry Representatives involved with the University of Tulsa Investment Portfolio Challenge, have an obligation to avoid actual or potential conflicts of interest. A conflict of interest is any matter that could reasonably be expected to impair an individual’s independence and objectivity or interfere with an individual’s duties.  Conflicts may be actual or perceived.

As students research their project they may come in contact with material[1], non public[2] information.  Acting on such information could lead to insider trading violations which violates SEC Rules 10b-5.  Students, Faculty Advisors, and Business Contacts are advised to use and disseminate such information judiciously.

1.2    Plagiarism

Plagiarism is defined as copying or using in substantially the same form materials prepared by others without acknowledging the source of the material or identifying the author and publisher of such material. Teams can read existing research on the GICs sectors and individual companies, but all analysis should be their own; they may not copy analysis (i.e., plagiarize) from another source.

Teams also must not:

  1. use excerpts from articles or reports prepared by others either verbatim or with only slight changes in wording without acknowledgment,
  2. cite specific quotations as attributable to “leading analysts” and “investment experts” without naming the specific references,
  3. present statistical estimates of forecasts prepared by others and identifying the sources but without including the qualifying statements or caveats that may have been used,
  4. use charts and graphs without stating their sources, or
  5. copy proprietary computerized spreadsheets or algorithms without seeking the cooperation or authorization of their creators.

1.3    Participant Information

By participating in the University of Tulsa Investment Portfolio Challenge, each participant acknowledges that the University of Tulsa has access to and shares personal information of participants in the University of Tulsa Investment Portfolio Challenge.  Each participant agrees that the University of Tulsa shall have the right to use such individual’s name, voice, photograph, likeness, their appearance in any medium or forum anywhere in the world (including online) without further compensation, unless prohibited by law.

2.0     TEAMS

2.1  Team Composition and Member Requirements

Teams must be sponsored by a college or university (“school”). There is no limit to the number of teams that may compete for any given school.  However, only two teams may compete synchronously on the presentation date.  Any school with over two teams will run teams through a virtual tournament administered by the University of Tulsa that comprises judges with some affinity to that school.

Each team:

  1. Must consist of undergraduate, graduate, or a combination of undergraduate and graduate
  2. Must consist of no fewer than three and no more than six

Each team member must:

  1. complete the official registration form, or be separately identified on the form;
  2. be a currently enrolled college or university student in an undergraduate or graduate program at the sponsoring university Time Of Registration
  3. be registered for at least a part-time course load, as defined by his or her university, at the Time Of Registration.

2.2    Research

Only team members may conduct research on the subject company for the purposes of the University of Tulsa Investment Portfolio Challenge. Teams may use only publicly available information in conducting their research[3].

  1. Teams may use a Business Contact, and/or Faculty Advisor as resources but may not enlist the help of any Industry Representatives involved with this competition. They may consult industry experts and representatives at publicly held companies to gain insight into publicly available information to inform the teams’ recommendations.
  2. The presentations should be prepared from the perspective of an independent research
  3. Teams can read existing research on industries and their recommended companies, but all analysis should be their own. Specifically, do not copy analysis (i.e., plagiarize) from another source.  Teams need to properly cite sourced information into their presentations.

2.3    Presentations

Presentations will be judged according to Appendix B, “Presentation Scoring Sheet.”  Each team will present their recommendations to a panel of Industry Representatives in two ways:

Report (Digital Material); 

  1. Six calendar days prior to the event, each team must submit a pre-recorded digital copy of their analysis. This may be done in the form a paper, PowerPoint deck, or other clear digital form.
  2. While there is no prescribed length for the report it must support the teams’ conclusions. Teams have only 30 minutes to present their material in their virtual submission.  This is not sufficient time to detail the work invested by teams to determine an optimal allocation of sectors.  However, the 30 minute cap will be strictly adhered to by judges.
  3. There is also no prescribed organization for the written material. However, judges will likely prefer written material that follows the Appendix B judging criteria order.

Presentation

  1. Teams may utilize their Business Contact, and/or Faculty Advisor as a resource for guidance, direction, suggestions, and feedback. Teams may not enlist the help of any Industry Representatives.
  2. The teams must provide their pre-recorded digital presentations, along with any supporting materials to Charity Barton by 5:00 pm April 11, 2024. Examples of supporting materials  include financial summaries, equations, model results or other detail supporting recommendations.
  3. Presentations must reference source
  4. Only student team members may participate in the digital presentation.
  5. The digital presentation is limited to 30 minutes; however, on April 17, 2023, teams must participate in an on-site Q&A session during which Industry Representatives and the general audience including Faculty Advisors will ask questions concerning the presentation. Competing teams will not be permitted to pose questions to a team during the Q&A portion of a presentation.  Each team gets a 20 minute Q&A session.  The Q&A sessions will all occur on competition day, April 17, 2024, at the University of Tulsa.  Teams unable to attend the Q&A session in person may arrange to attend virtually by contacting Charity Barton at cab234@utulsa.edu or Tally Ferguson at tally-ferguson@utulsa.edu;.
  6. Each Q&A session will be timed and last no more than 20 minutes. The timekeeper will provide a five-minute warning and an announcement when time has expired during the presentation. The timekeeper will announce when time has expired during the question and answer period. When the timekeeper announces that time has expired, teams must immediately

3.0    COMPETITION PARTICIPANTS AND ROLES

3.1    Faculty Advisor

  1. Each team may avail themselves of one faculty advisor. The faculty advisor must be currently employed as staff or a faculty member by the team’s sponsoring A faculty advisor may server more than one team within his or her school, but may not advise teams other than from their school.
  2. The faculty advisor’s primary responsibility is to provide guidance and direction to the team during the
  3. Faculty Advisors are not permitted to conduct any analysis for the team’s presentation or supporting handouts, nor may they contribute research or content to either the handouts or the presentation material beyond providing guidance, direction, suggestions, and
  4. Faculty Advisors may not participate in the Faculty Advisors may ask questions during the competition presentations, but they may not ask questions of their own teams.

3.2    Business Contacts

Each team may avail themselves of any number of Business Contacts at their own discretion.  These contacts can share expert knowledge about industries or companies to supplement the teams’ research.

  1. The Business Contacts may not conduct any analysis for the team’s written report or presentation
  2. The Business Contacts may not contribute any research or content to either handouts or the presentation beyond providing guidance, direction, suggestions, and
  3. Teams must cite any intelligence drawn from Business Contacts used in presentations or handouts.

3.3    Virtual Tournament Industry Representatives

Virtual Tournament Industry Representatives independently judge a specific school’s set of teams if that school posts more than two teams.  Schools with two or fewer teams bypass the virtual tournament.  Schools may select their own industry representatives, or select from a set of judges provided by University of Tulsa IPC administrators.  Virtual Tournament Industry Representatives shall judge each team according to the presentation scoring sheet (see Appendix B).

Virtual Tournament Industry Representatives may be selected from their school’s Business Contacts (see section 3.2 above).  In that joint capacity, Virtual Tournament Industry Representatives may spend as much or as little time with their teams as agreed between them, the teams, and the team’s Faculty Advisor.

There are no prescribed minimum or maximum number of Virtual Tournament Industry Representatives;  however, it is recommended that schools select at least three judges.

Virtual Tournament Industry Representatives are welcome to join the presentations on presentation day to observe their school’s top two teams.

3.4    Industry Representatives

Industry Representatives independently judge each synchronous presentation made on presentation day using the presentation scoring sheet (see Appendix B).

  1. Industry Representatives represent industries with significant presence located within a 6 hour drive radius of Tulsa.
  2. There will be a minimum of three judges per team presentation.
  3. The judges will be invited by Collins College of Business staff, but participating schools are encouraged to nominate Industry Representatives.
  4. Virtual Tournament Industry Representatives may not serve as Industry Representatives.

4.0    COMPETITON LOGISTICS AND AWARDS

4.1    Registration

Registration opens on or around January 15 and will be done through digital entry at this url: https://utulsa.edu/academics/business/about/academic-approach/student-investment-fund/investment-portfolio-challenge/registration/

Registration ends on February 15th.  Exceptions, i.e. late registrations, must be approved by the University of Tulsa and a majority of schools registered by February 15th.  As used in these rules Time of Registration means the date and time that a school’s team registers on line.

4.5    Submission package

Each team must submit a prerecorded presentation of up to 30 minutes in length with any supporting documentation or reference material according to the following schedule.  Upon registration, teams will be given a url at which to upload their presentation material.

Virtual tournament, for schools with over 2 submitted teams, April 1, 12:00 pm

Synchronous submission, April 11, 12:00 pm.  For clarity, the top two teams from each school’s Virtual tournament must resubmit their presentations on April 11.  Teams may change their presentation from their April 1 submission based on Virtual Tournament Industry Representatives feedback.

4.1    Virtual Tournament Schedule

Teams from schools sponsoring more than two teams will go through a school-specific virtual tournament to pare the school down to two final teams for the day of the synchronous presentation.  This is the schedule for such tournaments:

April 1, midnightsubmit the 30 minute prerecorded digital presentation along with any reference documents intended to supplement the presentation. Upon registration, teams will be given a url at which to upload their presentation material.
April 2, midnightDigital presentation and Scoring form url made available to Virtual Tournament Industry Representatives.
April 7, midnightVirtual Tournament Industry Representatives submit their scores via scoring form url.
April 8, midnightUniversity of Tulsa IPC Administration digitally notifies schools which two teams move on, and shares the virtual tournament scores for teams at that school, along with any judge comments.

4.2    Presentation Schedule

Presentations will take place in sequential 20-minute sessions spread across cohorts according to the following schedule.  Depending upon the number of teams, simultaneous presentations might be arranged.  Competition sessions will be sandwiched by an introduction/orientation and the University of Tulsa’s Friends of Finance guest speaker lunch during which the winners will be announced.  The number of competing teams in each cohort will be determined based upon the number of teams that register.

Schedule;  There will be up to two cohorts following the below schedule.

9:00 - 9:10Introduction and Orientation
9:10 - 9:30First presentation
9:30 - 9:35Judges compile notes for scoring sheets
9:35 - 9:55Second presentation
9:55 - 10:00Judges compile notes for scoring sheets
10:00 – 10:20Third presentation
10:20 – 10:25Judges compile notes for scoring sheets
10:25 – 10:45Fourth presentation
10:45 – 10:50Judges compile notes for scoring sheets
10:50 – 11:00Judges submit all scoring sheets
11:00 – 11:15University staff complies judges’ scoring sheets and determines 1st , 2nd and 3rd place teams.
Post Competition FOF in-person lunch:Awards and recognition

4.5    Awards

Cash prizes will be awarded to the first and second place teams. The winning team award is $10,000, and the second place team award is $5,000, and the third place team earns $2,500.  These winners will be announced at the April 17, 2024 University of Tulsa Friends of Finance luncheon featuring key note speaker, Jared Peterson President of AAA Oklahoma.

 

Appendix A – Investment Portfolio Challenge Guidelines

Situation; You have been hired as financial advisors by your university’s endowment committee to assess the holdings and strategy implemented by Monumental Endowment Management  Enterprises (“MEME”).  MEME was established by a consortium of economists, psychics, and hedge funds.  Your university hired MEME three years ago to set up a $6mm fund (“SIF”) donated by a collection of alumnae seeking to give students an opportunity to manage equity investments.

For SIF, the donors sought a student-led fund that seeks to: (i) distribute 3% of the fund annually to provide scholarships for students interested in studying finance; (ii) supplement $100,000 in finance department expenses annually; (iii) grow at a rate commensurate with a broad-based index of US equities.  As such SIF has a long-term investment horizon and seeks a moderate growth investment style consistent with moderate risk tolerance.

MEME made the following governing suggestions for the funds’ investment policy:

  1. At least 20% of the portfolio must be invested in iShares S&P sector index funds (see table 2 below)
  2. At least 10% of the portfolio should be in “alternative investment” asset classes which they define as comprising private equity, commodities/metals, and crypto currencies.
  3. Up to 70% of the portfolio should be invested in well known individual “blue chip” stocks with at least $2 billion in market capitalization, traded on the New York Stock Exchange.

MEME’s stated return objective is to grow rapidly but responsibly so that, in five years, students have a considerably larger base from which to distribute scholarships and supplement expense funding.  Their stated risk tolerance is high.  That is, they are comfortable suffering losses in a down market provide they outperform a bull market.

This is the portfolio MEME established three years ago which they have left unchanged for the past three years.  For clarity, neither the students, nor MEME made any transactions, and all dividends were reinvested into the dividend paying issuers.

TickerShort NameSectorPercent Allocation3 year annualized return3 year annualized risk
NVDA US EquityNVIDIA CORPInformation Technology23.00%48.30%55.60%
SBUX US EquitySTARBUCKS CORPConsumer Discretionary6.00%4.00%27.90%
GRMN US EquityGARMIN LTDConsumer Discretionary6.00%2.00%22.40%
NKE US EquityNIKE INC -CL BConsumer Discretionary6.00%-4.10%32.20%
AMZN US EquityAMAZON.COM INCConsumer Discretionary6.00%-0.50%33.40%
NFLX US EquityNETFLIX INCCommunication Services11.50%-4.70%47.70%
DIS US EquityWALT DISNEY CO/TCommunication Services11.50%-12.40%36.20%
Spy US EquityIndex FundIndex20.00%10.20%17.60%
BitCoinAlternative Investments10%28.70%33.00%
0.00%0.00%
Portfolio Return14.10%36.20%
Sharp Ratio0.31
SPY US EquityS&P Index ETF10.20%17.60%
S&P Risk Adjusted excess return ratio0.41

Challenge;  Your alma mater hired you to advise them on the following five issues:

  1. Risk Tolerance and Investment Objective;
    1. How closely does MEME’s governance suggestions and stated return objectives match what the SIF donors requested?
    2. Discuss how prudent MEME’s investment allocation by sector and individual holding is from the standpoint of the SIF donor’s risk tolerance and investment objectives. Be sure to discuss both return, risk and their transaction strategy.
  2. Sector portion of funds; how should SIF allocate their portfolio by sector?  State what percent of the sector portion should be in each sector ETF rather than individual holdings and justify why.  Following are the funds with their Ticker symbols.  You are advised to incorporate macro economic variables in your projections.  Quantitative methods for optimizing portfolios are encouraged if well understood by analysts.
Table 1Sector Funds and weightings
TickerSector nameS&P 500 composition as of 11/30/23Your sector recommendation
XLCCommunications Services8.60%
XLYCons Disc10.70%
XLPCons Staples6.30%
XLEEnergy4.10%
XLFFinancials12.90%
XLVHealth Care12.70%
XLIIndustrials8.30%
XLKInfo Tech29.10%
XLBMaterials2.45%
XLREReal Estate2.45%
XLUUtilities2.40%
  1. Alternative Asset portion: Should SIF invest any of its funds into “alternative investments”?  If so, which of MEME’s three categories do you recommend, private equity, commodities/metals, and/or crypto currencies?
  2. Individual stock selection; Is investing in individual stocks consistent with SIF’s return objectives and risk tolerance?  If so:
    1. which of MEME’s stocks do you recommend keeping and why?
    2. Select 3-5 stocks not on MEME’s list that SIF should swap into and provide an investment thesis for each, supported with fundamental analysis.
  3. Final portfolio construction; Present your recommendation for how to invest SIF’s $6 million today.  Highlight reasons for diverging from MEME’s portfolio.
  4. Economic Scenario Adjustment; MEME’s economists and psychics laid out the following projections for selected economic variables.  How does your response to 5 change under these scenarios?
Table 3Economic Projections
PsychicsEconomists
12/31/2412/31/2512/31/2412/31/25
Personal Income (US$ Billions)23,38325,50819,13117,006
10 Year Treasury Yield3346
Crude Oil price6060110150
Unemployment rate US (U-6)3.6348
US GDP (US$ Billions)26,82629,26421,94819,510
EU GDP (US$ Billions)18,80420,51315,38513,675
China GDP (US$ Billions)15,62017,04012,78011,360
Japan GDP (US$ Billions)5,5666,0724,5544,048
UK GDP (US$ Billions)2,9373,2042,4032,136

Prepare a digital presentation of no more than 30 minutes responding to these five issues.  Supporting material that cannot be covered in the 30 minute presentation may be included with your submission.

Appendix B – Presentation Scoring Sheet

University of Tulsa Investment Portfolio Challenge

Presentation Scoring Sheet

Team: __________________________

Industry Representative: __________________________

CriteriaMaximum PointsPointsNotes
1.     Risk Tolerance and Investment Objective;10
a)     Consistency of MEME with SIF donors request.
b)     Prudence of MEME’s investment allocation by sector and individual holding is from the standpoint of the SIF donor’s risk tolerance and investment objectives. Be sure to discuss both return, risk and their transaction strategy
2.     Sector Portion:15
a)     Allocation of sector portion
b)     Quantitative support of allocation
c)     Qualitative support of allocation, look for economic data support
3.     Alternative Asset Portion:5
a)     Recommendation (whether to “invest” at all and if so in what)
b)     Quantitative support of recommendation
c)     Qualitative support of recommendation
4.     Individual Stock Portion:15
a)     which of MEME’s stocks do you recommend keeping and why?
b)     Select 3-5 stocks not on MEME’s list that SIF should swap into and provide an investment thesis for each, supported with fundamental analysis.
5.     Final portfolio construction;10
a)     How to invest SIF’s $6 million today.
b)    Highlight reasons for diverging from MEME’s portfoli
6.     Economic Scenario Adjustment15
a)     How does portfolio construction change under the Psychics’ rosy prediction
b)     How does portfolio construction change under the Economists’ dour prediction
Presentation
Materials15
Quality of digital presentation
Question & Answer10
Did team answer the questions effectively and with confidence?
Team Involvement5
Team involvement in both the presentation/questions and answers
Total100