Young Berkeley team showing the way in KPMG Challenge

WEDNESDAY, DECEMBER 7: One of the youngest investment teams in the KPMG Investment Challenge, the Fashionistas from Berkeley, head the portfolio values at month two.

In ninth place, some $2,500 behind their fellow students, are the Risktakers.

Hans-Peter Roser of the Fashionistas team said that although there was rivalry between the two Berkeley teams and being first was a nice position to be in there was still a long way to go.

The team was a little cagey regarding their strategy but did reveal they held half of their portfolio in US stocks with the rest in Canada as well as a holding BCB in Bermuda.

The young students have ambitions in the insurance, law, medical and criminology fields and said they are enjoying being part of the stock market challenge.

The Risktakers played down any inter-team rivalry and seemed confident they could catch up and eventually overtake the Fashionistas.

The Risktakers portfolio includes Asian stocks but is mainly concentrated in the US, Canada, and they have invested in BNTB here. They were a little reluctant to discuss strategy but gave the impression they were targeting quality companies that had taken a hit of late with their stock prices artificially low.

The five-member team, who have ambitions for careers in the finance sector, are hoping this strategy will pay dividends by the end of the Challenge next April.

Timing is essential when buying stocks and both teams check a variety of websites to gain as much information as possible before deciding to invest.

The teacher in charge of the investment teams at Berkeley, Dawn Nichols Marshall, said the students are so enthusiastic at being part of the Challenge.

“They have learned so much about how the stock market works and investments. They get quite excited when their stocks are doing well and can’t resist coming to tell me.”

In second place in the Challenge is Bermuda High School’s Common Cents.

Like the Fashionistas they also recorded a 6.45 per cent increase in their portfolio. The IB Investors, also from Bermuda High School, are in a close third place.

According to KPMG: “The portfolios of most teams are highly concentrated in United States securities, with some investments in companies from Bermuda, the UK and Canada.”

“All teams are required to hold at least one Bermudian company in their portfolios, with most teams opting for well-known names such as Argus, Watlington Waterworks and Butterfield Bank. 

“The teams have continued to invest primarily in common stocks with only a small portion being allocated to ADRs (American Depository Receipts).”