Buying Equity Means Owning a Part of a Business

The Equities Department follows a value investing approach focused on European small and mid caps.

Value Investing

This concept, established by well-known investors Benjamin Graham, Warren Buffet and Philip Fisher, focuses on fundamental analysis of companies. Value investors conduct a deep qualitative and quantitative analysis and thereby aim to understand the business and the drivers of their investment target.

The MSMIF

The Munich Student Managed Investment Fund (MSMIF) is our fund vehicle. It is exclusively advised and managed by our Equity and Fixed Income Analysts. They are responsible for developing investment ideas and monitoring our active investments. By investing real money, our members learn to be accountable and take responsibility for their decisions. Learn more about the MSMIF: www.msmif.de

Organization

The Equities team is organized into several coverage groups, each focusing on one particular industry sector. Each group consists of junior and senior analysts who will meet regularly to discuss investment opportunities within their target sector. Promising companies are analyzed in depth and pitched in a team-wide meeting before being presented in front of the investment committee for final approval.

Screening

We constantly monitor a large variety of stocks within our sector coverage groups. Interesting candidates are then analyzed in greater detail.

Stock Pitch

Using a toolkit of qualitative and quantitative methods, we aim to understand the underlying drivers of the business and determine a fair share price.

Monitoring

Post investment, we monitor the company continuously as well as any news surrounding it. Based on this analysis, we reconsider the decision and adjust our position.

Fixed Income Investments along the Yield Curve

The Fixed Income Department analyses bonds using a value investing approach and is responsible for our money management.

Fixed Income Investments

Investing in bonds means allocating money for the long term. There are two ways to earn money with bonds. The obvious one is the periodically paid interest. The other one is appreciation to or above face value of the bond because of shifts in the yield curve or because of changes in the companies or countries ability to service and pay back its debt. Being the biggest securities market by volume, it is not only thrilling to discover it, but also full of opportunities. We aim to benefit from those by applying a value investing approach.

Organization

The Fixed Income team consists of analysts with different degrees of experience. Team members learn about FI basics, debt markets, FI screening, credit analysis and investment strategies. In bi-weekly meetings, we discuss investment proposals and expand our knowledge.

Broadening our horizons beyond traditional asset classes

Offering our members a way to educate themselves outside of Equities and Fixed Income.

Alternative Investment Strategies

Exploring investment strategies and philosophies beyond traditional long-only strategies and value investing mindsets, AIS aims to educate our members following a peer-to peer-education approach. Participating members learn the basics of stocks and derivatives, technical aspects of exchange and OTC trading and fundamental quantitative pricing and trading methods. The theoretical knowledge is complemented by participation in multi-national trading games and our in-house trading championship.

Organization

The Department consists of several project teams, each focusing on a different algorithmic approach, as presented below. Our goal is to ultimately join all these projects in a single automated trading system.

Newcomers will start in one of our project teams, quickly developing expertise and contributing their own ideas. The single project teams schedule their meetings by themselves whereas community meetings are held for project milestone presentations and the formation of new teams.

Technical Analysis

Technical Analysis is based on the assumption that all relevant information is reflected by past prices. In this project we work on the automatization of common strategies and want to find out which combinations and strategies are best suited for different market situations and asset classes.

Sentiment Analysis

Sentiment Analysis aims on quantifying investors' opinions and emotions towards stocks and other investments. Based on data from stock market forums or Twitter we work on self-learning algorithms to classify comments and retrieve tradeable information.

Correlation Analysis

Correlation Analysis uses sophisticated statistic to find links between price movements of different stocks and asset classes. In this project complex data analysis and focus on delayed reaction of price changes play an important role.