Fall 2020 Short Term Competition

Below is the assignments for the Fall 2020 Short Term Competition:

Short Term Investment Parameters

*What*	*Acceptable level*	*Description / Example*
Market cap minimum	$300 million	To limit the possibility of penny stock trading, having limited information, and to keep a certain level of trade volume.
Maximum Small Market cap % of given funds	Less than 50 % in Small cap(defined as companies less than 2 billion in market cap)	Example: If a team is given $15,000 dollars the maximum allowed investment in small cap companies is $7,500.
Minimum holding time	2 weeks	To eliminate daytrading.
Minimum size of investment	$1,000	To ensure it has valuable meaning.
Maximum % in one investment of given funds	33 %	Example: If a team is given $15,000 dollars the maximum allowed investment in one single asset is $5,000. This will ensure both diversification but also force teams to invest in more than one asset.
Maximum % in one investment of total portfolio value	10%	Example: If LAM’s total assets are $200,000 then no single investment can exceed $20,000. This includes all positions. If LAM already have a substantial investment in a given stock it might limit the possibility of a team to make the same investment.
Maximum % in one industry of given funds	33 %	To diversify away from industry risk. Example: If a team is given $15,000 dollars the maximum a team can invest in industry is $5,000.
Maximum % in one industry of total portfolio value	30 %	To limit exposure to industry risk.