Case Study 2017-2018

Case Study for 2017-2018

PLEASE NOTE: This case study is from the 2017-2018 competition, and should be used for reference purposes only. The current case study for the competition can be found here: https://globalyouth.wharton.upenn.edu/investment-competition/case-study/

You can’t build an effective investment strategy without first knowing your client…

Meet Jack Abraham!

CASE STUDY: You graduated college and now work at an up-and-coming asset management company, Knowledge@Wharton Asset Management (“KWAM”). KWAM specializes in managing investments for young adults. KWAM currently has a $100,000,000 portfolio that is invested across eleven sectors, representing various industries and companies. You are an analyst, but you hope to one day become a portfolio manager who makes the investment decisions for KWAM’s portfolio.

KWAM’s portfolio manager (i.e. the teacher) recently met with a potential client, Jack Abraham, who is a successful entrepreneur. Jack founded Milo.com, which was bought by eBay for a reported $75 million.

Jack told the portfolio manager that KWAM has 10 weeks to put together a detailed portfolio analysis proposal. If you want to learn more about this smart and interesting guy, check out this Business Insider story: http://www.businessinsider.com/explaining-ebays-turnaround-2014-2.

The portfolio manager recognizes that it will not be easy to land Jack as a client because he is talking to other asset management firms (i.e. other classes and teams). It is critical to make the most convincing case to Jack, so everyone on the team must contribute to ensure KWAM creates the best portfolio analysis proposal. The portfolio manager tells you that this is your chance to shine.

Over the next 10 weeks, your team will develop and test an investment strategy using the industries and companies from the competition’s approved stock list. Your team will conduct a thorough analysis of both the industries and the companies, which will provide support for your portfolio analysis proposal that sets up your potential client for long-term investment success. You will be able to test your investment strategy by using the Wharton School’s Online Trading and Investment Simulator (OTIS).

Your team will start out with a portfolio of $100,000 in virtual cash. Your team will compete against students from all over the world. At the end of the 10 weeks, you will be required to submit a document detailing your recommended investment strategy. K@W judges will review your final investment policies and select top teams. Those teams will be invited to present their strategies, either in person or virtually, to a panel of experts.