Fund Management Challenge

The Fund Management Challenge (FMC) is an online portfolio management simulation in which graduate students learn from the experience of senior financial professionals how to apply the principles of sound investment to portfolio management and construction.

At the beginning of the competition, each student team, supervised by one or two faculty members picks five long and five short stocks from a basket as though they were trading the actual stocks, and provides a short description of the investment rationale (investment case) for each selection.

Each team may rebalance its portfolio at predetermined dates generally once every week (rebalancing dates), maintaining the five long and five short stock structure and providing a short description of the investment case for each new buy/sell decision.

Student teams are encouraged to correctly apply fundamental analysis in their investment case, but their final investment decisions may deviate from the fundamental evidence and be based, for instance, on quantitative or technical analysis.

Groups comprised of investment professionals acting as graders access the student teams’ portfolios every rebalancing date and evaluate the logic and consistency of the investment rationale rather than its merit, and provide feedback as necessary.

At the end of the competition, an awards ceremony is held to recognize the achievement of the teams with the overall best performing portfolios. Each winning team presents its investment portfolio and takes questions from the audience. In recognition of their victory, the teams are offered scholarships to further their financial education.