Extraordinary Financial Return through Knowledge in Investment
Thursday, 17/12/2015
Nine out of the thirteen groups enrolled in the Investment Management course at Harapan Bangsa Institute of Technology (ITHB) hit fantastic rates of return at the ITHB Securities Portfolio Management Competition that lasted from September to November 2015, far exceeding that of the Jakarta Composite Index (IHSG). The three lecturers co-teaching the subject, namely Dr. Samuel Tarigan, Maclaurin Hutagalung, Ph.D., and Mentiana Sibarani, M.Sc., introduce the forty-six students to portfolio and investment theories in one semester. What makes the course interesting is that it gives an opportunity to the students to apply their knowledge directly in an investment competition.
At the end of the three-month competition sponsored by ITHB and Maybank, a high-profile Malaysian multinational bank, the winning team scored a rate of return of 41.38% (annualized return of 299.49%), far above the benchmark, IHSG, which hit a return of merely 1.72% in the same period. Faisal, one of the winning team members, revealed that given a short period and that his group was investing simulated funds, he chose a less-diversified strategy. The high-risk and high-expected return strategy that his team used brought an unbelievable result. If they are able to keep their fund performance, every rupiah that you invest in the team will triple in amount within just one year.
The winning team brought home a Reksadana (Mutual Fund) of IDR 2 million from ITHB and IDR 1 million from Maybank as their prize. Yet, for them, it was not only about winning money. Being able to learn to invest in a rational, well-calculated, and systematic manner was an important opportunity that not everyone can have.
The second winner also booked a remarkable return. Earning a return of 36.48% (annualized return of 246.99%), the team received a Reksadana (Mutual Fund) of IDR 1 million from ITHB and IDR 500 from Maybank. The other teams that won the third up to the ninth place in the competition all yielded higher rates of returns than that of the Jakarta Composite Index.
Was the clean-sweep a luck? Probably. Time will tell. But one cannot simply ignore the possibility that the outstanding results by the 9 of 13 teams could have also been for the knowledge and skills that have learned and practiced while studying at ITHB.
Be that as it may, one thing is for sure. One cannot enter such a competition without any sound theoretical and practical knowledge. Way to go, Harapan Bangsa champions; well done, future fund managers. Proficiat!