NCL Capital Partners is a student managed hedge fund with a Senior Team acting as fund managers that dedicate the majority of their time to the supervision of students/analysts. For the moment, all capital and assets are virtual but the end goal is to set up with real capital just as other world renowned universities have managed to do. The fund gives students an insight into the real life workings of hedge funds such as corporate structure and trading strategies as well as teaching them valuable skills that will set them in good stead for a career in financial markets. University wide and inclusive of all backgrounds, currently ranging from IT to Maths and Law to Marketing, we have a range of sectors and divisions to suit career ambitions and interests. We have a focus on sustainable investment strategies and being a responsible entity.
Currently, the fund is made up of 65 students. The fund has 4 main components to which students can be a part of; those are the equity fund, managed futures, multi-asset trading and the macro division. Students can take up analyst positions or even economist positions in the macro division – we all need to know the colour of Mario Draghi’s tie. The equity fund is then broken into 5 sectors – TMT, Consumers, Industrials, Oil&Gas and Basic Materials.
In the equity fund, analysts were taught in semester one how to write CFA-style equity research reports, including business analysis (industry and geographical analysis), financial analysis and valuation modelling. Students then spent 8 weeks creating a 10 page (20 page appendix) equity research report on their chosen company in their given sector. These were completed during private bookings of the Bloomberg terminals – scheduled on Mondays and Wednesdays.
In December, analysts then presented the core of their research reports in a stock pitch evening to the Senior Team in the Partners Room, Newcastle Business School, in a bid to be included in the funds virtual portfolio which is now live. Our asset allocation will be published on the website shortly.
In the managed futures fund, students have been implementing an array of technical trading strategies to generate signals on futures or options, having previously been taught technical analysis and market positioning. They have completed this on a virtual trading platform. In the multi-asset trading fund, students will learn how to design a risk premia trading strategy, backtest it using the Bloomberg terminals and then write code to implement the strategy.
All activities of the fund are available on the website www.nclcapitalpartners.co.uk and you can currently view research reports written by students from the previous semester.
Our success within one semester is reflective of the connections we have obtained with various hedge funds across the country. On the 27th April 2018 we are holding a celebratory evening commemorating the success of the fund and launching our annual report. The evening will include a discussion panel of experts and various hedge funds in attendance alongside students; not only will the debate be worthwhile but we hope that exposure to professionals will further propel students in their quest to secure employment.
Written by Amy Donlevey and Jonathon Jurado