Little separating top three in stock challenge

WEDNESDAY, JAN. 4: The Warwick Academy Action Jacksons team was the leader in the KPMG Investment Challenge as of December 16 with a portfolio value of $49,198.

Saltus Rogue Traders followed closely in second place also with a portfolio value of $48,861.

The Bermuda High School Common Cents team is in a very close third place with a portfolio value of $48,196.

The four-member all-girl team, Common Cents, have been displaying a great deal of common sense with their investments, if their returns are examined.

Like many of the investment teams they focus mainly on US stocks as they report they are put-off buying European stocks with so much turmoil with the Euro zone crisis.

Common Cents have been playing safe by investing in established companies they hope will be recession-proof. Further, they have had a weather eye out for consumer buying over the holiday period trusting that consumer-based companies will do well over this period.

They have picked up local company Argus as their requirement for a Bermuda company.

The Common Cents team is a young one and for nearly all of them it is their first time in the Challenge.

The girls follow the trends in the market and also read up on current articles regarding the companies they invest in.

Common Cents is edging BHS’s other more mature investment team, IB Investments.

The three-member all-boy team are veterans of previous Challenges, and they will be nervously looking over their shoulders at the progress of Common Cents.

Loss

They are investing is predominantly US stocks and said they were smarting over losing $830 on stock in Amazon.com, a stock they hoped would well over the holidays period.

They have a diverse portfolio, which includes energy stocks, and have picked up ACE as their Bermuda company.

“We are building a portfolio that does not need many changes that will hopefully appreciate in value”, the team said.

The team concedes that their conservative approach may change in the next few months and that more risks will be taken, especially if they are lagging in the table.

Of the three-member team, one member is keen to become a broker, one an actuary, and the other has been put off a business career somewhat over the volatility of the market.

Overall, both teams agree that the winner of the Challenge probably will not turn in a profit but will be the team that loses the least amount of money.

According to KPMG, the current trading results of the teams indicate the current volatility in the US and international markets which experienced overall positive performance across the board.

Further, the portfolios of most teams are highly concentrated in United States securities, with some investments in companies from Bermuda, UK and Canada.

As teams are required to hold at least one Bermudian company most teams have opted for well-known names such as Argus, Watlington Waterworks and Butterfield Bank.