Inter-Varsity Stock Research Challenge 2017
Unearthing Hidden Champions
You wear them, the Crizal lens on your eyewear. Essilor International is the world’s leading ophthalmic optics company behind the Crizal, Transition, Varilux lens and the company is powered by a unique owner-oriented corporate culture with its inclusive plan to enable 50% of employees worldwide become shareholders, compared to 20% currently. Its share price has compounded 2,000% since 1986.
You touch them, the ASSA Abloy system for your door. ASSA Abloy AB, the global leader in innovative door opening solutions to improve our lives through security, safety and convenience, is up 10,000% since 1994.
You cook with them – peep inside a professional kitchen and you can find a Rational intelligent cooking system on a Norwegian submarine, a Saudi prince’s yacht, as well as in hospitals and restaurants around the globe. Rational AG commands a global 54% market leadership in the world’s professional kitchens that include the Buckingham Palace and the White House, and is behind the success of such famous culinary names as Gordon Ramsay. Rational AG is up 1,000% since 2000.
You may even use them in emergency care situations, the Ambu bag for manual resuscitation in hospitals, by ambulance services – in fact in all kinds of emergency environments all over the world. Ambu A/S, the company whom millions of patients and healthcare professionals worldwide depend upon the functionality and performance of its products, is up 6,000% since 1992.
Essilor, ASSA Abloy AB, Rational AG and Ambu A/S are the successful yet relatively low-profile Hidden Champions who are focused market leaders in sophisticated, hard-to-imitate niche products and valuable critical niches that are largely invisible to the average consumer yet are indispensable to our well-being in daily life. From a value investing perspective, investing at an earlier stage in the long-term growth trajectory path of these Hidden Champions – in Asia – should prove rewarding.
8I Holdings Limited, a Singapore-based and ASX-listed financial holding company, is thrilled to announce the first annual Inter-Varsity Stock Research Challenge – “Unearthing Hidden Champions”! The Challenge’s mission is to promote the study of value investing, to foster intelligent research on Hidden Champions in Asia, and to allow students to advance their analytical skills and earn exposure and recognition in the community of value investors and some of the most notable minds of the investment industry. The winning team of the Challenge will also earn a prize money of S$5,000 and a Trophy engraved with their institution’s name.
The Challenge is held within the 6th Value Investing Summit (VIS) 2017 which is the largest gathering of value investors in Asia Pacific. It is a two-day networking and guest-speaker event held on 14-15 January 2017 at the Singapore Expo. Past and upcoming speakers of Value Investing Summit include Dr. Niwes Hemvachiravarakorn, Mr. Hemant Amin, Ms. Lauren Templeton, Mr. Scott Phillips Jr., Darkhorse Capital CIO/founder Mr. Mohammed Ali-Reda, and 8I Holdings Limited CIO Mr. Kee Koon Boon. Started in 2012 with 500 participants, the VIS has since attracted 1,600 participants in our record-breaking VIS 2016.
We have assembled an expert judging panel of highly-respected professional institutional investors and fund managers to assist in determining the winning team. 4 varsity teams will be selected to present to the expert panel and the 1,600-strong audience. Contestants will be judged on the merits of the investment thesis and the depth of research.
Inter-Varsity Stock Research Challenge 2017
Unearthing Hidden Champions
(1) Who can enter the Challenge?
Varsity undergraduate students from all public and private universities forming groups of 2 to 3 members are eligible to submit ideas to the Challenge.
(2) When does the Challenge open?
Stage 1 (Registration): From now till 30 November 2016
Registration starts from now till 30 November 2016. The varsity team will state the full names of the members, the varsity institution and contact details including email addresses. By registering, each team agrees to follow the rules of the Challenge and the terms and conditions. You will receive a confirmation via email upon successful registration.
Stage 2 (Entry Submission Deadline): 12 to 16 December 2016
Eligible participants will submit a compelling and well-researched stock research presentation slides and written report in PDF form to the Hidden Champions Fund by uploading these two documents to the website www.valueinvestingsummit.com/varsitychallenge. Both the written research report and presentation slides will have no limitations on the number of pages or slides, though succinctness, clarity and organization in analysis is strongly encouraged. Aim to be “analytical” and not “descriptive” in your approach. Submissions deadline is on 16 December 2016, noon.
Stage 3 (Semi-Finals): 22 December 2016
10 to 12 varsity teams will be selected from the pool of submissions on 20 December 2016. If your team is selected, you will be notified by the organising committee to prepare for a face-to-face presentation on 22 December 2016 in front of the investment team at the Hidden Champions Fund at the office of 8I Education located at Goldbell Towers, #03-03, 47 Scotts Road.
Stage 4 (Finals): 15 January 2017
The top 4 teams will gather at Singapore EXPO on 15 January 2017 (Sunday) to present in the VIS 2017 to the expert panel and a 1,600 strong audience. Each team presentation is limited to 15 minutes and there is an additional 10 minutes of Q&A interaction with the judges. Prizes for the Champion team are S$5,000, S$3,000 for the First-Runner Up and S$1,000 for the Second and Third-Runner Ups.
(3) What is the submission criteria?
Please pay close attention to the following parameters:
- The company must meet the eligibility requirement, which is a public-listed company in Asia with a market capitalization of at least US$50 million and under US$10 billion as at 31 October 2016. The Asia-Pacific region markets include Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, Hong Kong, China, Taiwan, Korea, Australia, New Zealand, India and Japan.
- The written report must be submitted with the Calibri font and font size 11 with no spacing between the lines of text or paragraphs. Both the written report and presentation slides must be submitted in the form of PDF.
- The research thesis must align with the theme of “Unearthing Hidden Champions”. That means finding and analyzing businesses with wide and durable economic moats that generate superior returns on invested capital; unique, scalable business model with indestructible intangible know-how to create new categories of growth and a long runway to compound growth; and high-integrity, owner-oriented management teams.
Some guiding questions for inclusion in both the written report and presentation slides:
- What is the background of the Hidden Champion? What is your one-sentence investment thesis?
- What makes it a wide-moat business? Why do you think the business model is unique, scalable and that it gets easier as it gets bigger?
- What is the corporate culture, management quality and shareholding structure like?
- Why do you think the market value of the company can double in the next 3-5 years?
- What are your top 3 dislikes? What are the toxic factors?
“Strive not to be a success, but rather to be of value.”
– Albert Einstein
Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. The author(s) involved in the writing of this piece does not have any current vested interest of the companies mentioned. If you require expert financial or other assistance or legal advice, a competent professional should be consulted.