CFA INSTITUTE RESEARCH CHALLENGE SOUTHERN CLASSIC

Hosted by:

Atlanta Society of Finance and Investment ProfessionalsCFA Society AlabamaCFA Society South Carolina

2018-2019 Academic Year

Kickoff Presentation: October 4, 2018

AGENDA• Sponsors

• Organizer

• What is the Challenge?

• 2018 Southern Classic

• 2018 Global Champion

• 2018 Snapshot

• Participating Teams

• 2019 Tournament Diagram

• Benefits for Students

• CFA Global Network

• Competition Timeline

• Rules Overview

• Advisors and Mentor Involvement

• Ethics

• Subject Company

• Interacting with the Subject Company

• Resources

• Questions

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Guest SpeakersJohn Skinner, CFAReport Grader & Past PresidentMorgan Stanley – Graystone Consulting

Kendall Anderson, CFAFinal Presentation JudgeAnderson Griggs Investments

Jim ShilkettPresentation JudgeCHB Capital Partners

SPONSOR ACKNOWLEDGMENT

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Thank You Kaplan Schweser

Free resources including eBooks,

webinars, and exam information

Discounted exam prep materials for university students

University Review Program offerings and

professor discounts

ORGANIZERSOUTHERN CLASSIC COMMITTEE

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Stephen Daniels, CFAPresident

Trey Cartledge, CFASecretary

Chair, Research Challenge

Fred Tulley, CFAVP of Education

Celia Anderson, CFACo-Chair, Research Challenge

Dyer Kennedy, CFACo-Chair, Research Challenge

Daniel Fetterolf, CFAPresident

Joe Giltner, CFAChair, Research Challenge

WHAT IS THE CFA INSTITUTE RESEARCH CHALLENGE?• How is it organized?

- Worldwide intercollegiate competition between teams of students

- Organized by local CFA Institute volunteers – usually through CFA member societies

- At least 3 teams of 3-5 students participate

• What does it involve?- Analysis of a publicly-traded

company- Interviews with company

management- Mentoring by a CFA charterholder- Research report writing- Presentation of research

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Past Champions:2018 University of South Carolina2017 Kennesaw State University2016 University of Georgia2015 Wofford College2014 University of Alabama2013 University of Georgia2012 Wofford College2011 University of Georgia2010 Georgia State University2009 Georgia Tech

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University of South Carolina won the Southern Classic in 2018

BACKGROUNDSOUTHERN CLASSIC

2018 GLOBAL CHAMPIONSUniversity of Lausanne

Representing CFA Society Switzerland

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5,700+ Students3,500+ Volunteers1,000+ Universities

151 Societies and Emerging Societies

109 Local Challenges81 Countries

2018 SEASON SNAPSHOT

2018 SOUTHERN CLASSIC SCHOOLS

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2019 TOURNAMENT DIAGRAM

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~110 LOCAL LEVEL CHALLENGES

AmericasRegional

New York, USA23-24 April

~55 Teams

Asia Pacific RegionalSydney, AT

28-29 March

~25 Teams

EMEARegionalZurich, CH10-11 April

~35 Teams

Global FinalNew York, USA25 April 2019

BENEFITS FOR STUDENTS• Best practices in research and report

writing• Real-life learning experience as an

Equity Analyst• Access and exposure to leading

industry professionals• Professional report and experience to

use on resume/CV and job interviews• Experience presenting to top

financial professionals• Individual and team prizes• Opportunity for travel• Potential media exposure• Robust global network students and

thousands of volunteers worldwide

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COMPETITION TIMELINE

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Today Kick-OffNow! Preliminary ResearchBefore October 19, 2018

Register with CFA Institute

November 16, 2018 Company PresentationJanuary 15, 2019 1st Draft Due to MentorJanuary 29, 2019 Final Report DueInterim Report GradingMarch 2, 2019 Local Final PresentationsApril 23-24, 2019 Americas Regional in

New York, USAApril 25, 2019 Global Final in New York,

USA

RULES OVERVIEW • Each team consists of 3-5 students

(undergraduate and/or graduate)• Universities may form up to two teams

each, depending on Local Host rules• Students must be enrolled in the

university they represent and registered for at least a part-time course load at the time of the kickoff meeting

• Reports and presentations must be the students’ original work

• Students may not have contact with the subject company outside of organized events

• Students may not enlist the help of any investment professionals other than the mentor or faculty adviser

• Mentors and faculty may NOT contact the company

• Mentors, faculty, and subject company may NOT provide material non-public information

• Written reports must conform to the guidelines set forth by CFA Institute and include the cover page and disclosure statement provided by CFA Institute

• Teams may not use props in their oral presentations

• Students, mentors, and faculty must all agree to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct

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ADVISER AND MENTOR INVOLVEMENTFaculty Adviser• Insight and guidance on research

methods and tools as taught in academia

• 10 hours maximum of productive time before report submitted, 3 additional hours for each subsequent presentation (admin time excluded)

• Access to faculty for other projects unrelated to the Research Challenge is permitted

• All work must be the original work of the students

Industry Mentor• Insight and guidance on industry

practice• 6 hours maximum of productive time

before report submitted, 2 additional hours for each presentation

• Face to face or virtual• Company management question

development• Review first draft of research report• Presentation development

assistance

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ETHICS RESOURCES >> LINK TO RESOURCES• Ethical Standards for Investment

Professionals: An Interactive Case-Based Course

• Ethics Course Module 2: Standard II—Integrity of Capital Markets

• Ethics Course Module 3: Standard III—Duties to Clients

• Ethics Course Module 6: Standard VI—Conflicts of Interest

• Ethics Course Module 7: Standard VII—Responsibilities as a CFA Institute Member or CFA Candidate

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SAMPLE REPORT

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REPORT SCORING

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SectionMaximum

Points Comments

Business Description 5Industry Overview &

Competitive Positioning 15

Investment Summary 20

Valuation 20

Financial Analysis 20

Investment Risks 15

Corporate Governance 5

TOTAL 100

SAMPLE PRESENTATION

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PRESENTATION SCORING

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CriteriaMaximum

Points Comments

Financial Analysis 25

Valuation 25

Presentation 20

Question and Answer 20

Team Involvement 5

Materials 5

TOTAL 100

SUBJECT COMPANY

• HD Supply Holdings, Inc (NASDAQ: HDS) will be the subject company for this year’s competition

• North American industrial distributor based in Atlanta, GA

• Founded in 1974• 11,000 employees• Market Cap of over $7.8

billion

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INTERACTING WITH HD SUPPLY• Designated officers ONLY• Host organized communications

ONLY• Teams are permitted to interact with

the company as a member of the general public

• Industry mentor or faculty adviser must be present for all student-subject company interactions

• As long as individuals aren’t investment management professionals, students may contact and survey company suppliers, customers, vendors, etc.

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WHERE TO BEGIN• Visit the CFA Institute Research

Challenge website:• www.cfainstitute.org/researchchallege

- Advisers and Students must register- Peruse educational materials

selected specifically for participants- Watch videos of past presentations- View past reports from winning

teams• Students MUST register on the CFA

Institute website using the registration form provided by the local host.

• Southern Classic website:

http://asfip.org/Research_Challenge

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REGISTRATION

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Student Registration:https://www.cfainstitute.org/societies/challenge/student-welcome

Faculty Adviser Registration:https://www.cfainstitute.org/societies/challenge/volunteer-welcome

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QUESTIONS?

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