Duke Seniors Sweep the Carolina Hedge Fund Challenge for a Third Year
04 December 2015 11:24AM
For the third consecutive year, a team of Duke seniors took the top prize at the Carolina Hedge Fund Challenge, winning $10,000 and free registration for the Chartered Alternative Investment Analyst designation exam. Jordan Cook ’16, Seamus FitzPatrick ’16, and Harrison Kashkin ’16 competed against three teams at the Nov. 20 event, one from Elon and two others also from Duke. The objective of the challenge was for students from regional universities to develop an idea for a startup hedge fund, create a viable business structure around it, and present their ideas to a panel of distinguished investment professionals. The presentations were held at the Washington Duke Inn. Jon Hilsenrath, chief economics correspondent for The Wall Street Journal, gave a keynote talk between the initial round and finals.
Towerview Capital Management, the winning team, outlined a plan to invest in social impact bonds domestically and abroad, giving investors an opportunity to capture returns while bringing about positive social outcomes. Currently, no hedge funds exist in the space of social impact bonds, in which capital is applied to remedy a societal problem, and the government pays investors if the intervention is successful. The team presented to three judges: John Burkert, an investment manager at DUMAC, Andrew Montanus of Silverback Asset Management, and Mark Yusko, founder, CEO, and chief investment officer of Morgan Creek Capital Management.
“Fielding the judges' questions was both exciting and nerve-wracking,” said Harrison Kashkin, a double major in economics and statistics with a finance concentration. “It was an incredible opportunity to have dialogue with individuals who are so respected in the hedge fund industry. Such respect comes with expertise and years of experience.”
Earlier the same week, two Duke teams participated in the Atlanta Hedge Fund Challenge, hosted by Georgia Tech. They were bested by a team of University of Florida MBA students who had a track record of operating a $250,000 fund for the past 18 months.
All Duke students who participated in the challenges were enrolled in the fall semester course “Inside Hedge Funds” taught by Executive in Residence Linsey Hughes in the Department of Economics. As part of the curriculum, students craft and practice presenting their hedge fund ideas, with feedback from their classmates and Hughes.
On his team’s success, Kashkin commented, “We listened to Linsey's advice at the beginning of the semester that teams should be designed to bring together a diverse set of skills. Without Jordan, we never would have learned about social impact bonds. Without Seamus, the presentation would not have looked as professional as it did. Everyone played a role but mastered the material to a level that we each could play any role.”
The Hedge Fund Challenge was founded in 2012 by Atlanta-based Valkyrie Capital as a format for identifying new talent for the firm. It has expanded to include competitors from a number of southeastern universities, including UNC, UVA, Georgia Tech, Elon, Emory, and Davidson. Winners have not only seen cash prizes but also attention from industry professionals who seek to further cultivate their ideas and make them into operating funds.