The annual CFA Research Challenge is a prestigious competition hosted by the CFA Institute, involving participants from universities and top business schools all over the world. The challenge encompasses tasks such as producing a comprehensive equity research report and presenting findings to an expert panel. The competition provides invaluable networking opportunities and exposure to presentation skills.
The company selected for this year’s edition was Fluidra, a publicly listed, global leader in innovative solutions for the pool and wellness industry.
5 participants from the International Master in Finance made up the winning team for EADA, placing 2nd in the Spanish final, which took place in Madrid’s Stock Exchange on 28th February:
Thomas Thorenfeldt (Norway), Célestin Wanner (Switzerland), Michael Sacchi (Italy), José Ignacio Arango de Diego (Panamá) and Sebastian Kristiansen Strand-Eide (Norway)
EADA’s team expressed excitement about the chance to apply financial analysis and company valuation knowledge in a professional and competitive setting. We got in touch with the participants and asked them to share their experience and feelings after this challenge.
What motivated you to participate in the CFA Research Challenge?
Thomas Thorenfeldt:
“I wanted to participate in the CFA Research Challenge because it presented an opportunity to further challenge myself and broaden my horizons, benefiting both my academic pursuits and future career aspirations. Despite acknowledging the additional effort required alongside my master’s degree, I firmly believed it would be a rewarding experience — a belief that has since been confirmed. Moreover, I anticipated that the challenge would facilitate networking opportunities, allowing me to connect with new individuals and expand my professional circle.”
“Engaging in the research challenge provided a platform to apply my theoretical knowledge in a practical, real-world context. It offered a sneak peek into the business landscape I’ll soon be navigating professionally. From conducting research to analysing financials and ultimately providing a recommendation for a company, was an amazing experience that I never expected to have during my master’s program.”
Sebastian Strand:
“To compete and try new things is something I strive to do. That is why the CFA Challenge was perfect for me. Furthermore, the challenge itself concerns subjects I find very interesting and it is something I want to learn more about.”
How did you prepare for the competition, and what resources did you find most helpful?
Thomas Thorenfeldt:
“We started off by diving into the company’s background, looking over their previous annual reports and financials to get an understanding of their position in the market. The majority of our work was concentrated in the final three weeks before the report deadline, often leading to late nights. However, despite the intense schedule, it was an instructive and exciting process as we knew the knowledge gained, would be beneficial for our future careers.”
“To ensure the quality of our work, we studied reports and presentations from past winners of the CFA Research Challenge to understand formatting and information requirements. We relied on various financial websites such as Yahoo Finance, Eikon Reuters, and Statista to gather data. However, our main focus was on the company’s own annual reports and other relevant reports from their website, which served as the foundation of our report.“
How did you navigate team dynamics and ensure effective collaboration throughout the process?
Célestin Wanner:
“During the CFA Research Challenge, navigating team dynamics to generate effective collaboration was essential for our success, especially considering our team’s diverse cultural backgrounds. We identified each other’s capabilities, and tried to leverage on everyone’s strengths. For instance, I focused primarily on the valuation part and dedicated a lot of time on the design of the report and presentation, while other team members focused more on the Financials or ESG.”
“Having time was also crucial, this is why we temporarily prioritized this project over other activities. We understood that the potential rewards of success outweighed any sacrifices made during the process. Additionally, we implemented a rigorous schedule using reverse planning, setting tight deadlines to keep us on track. This approach proved highly effective, allowing us to meet milestones efficiently and ultimately achieve our goal of reaching the Spanish regional final and securing the second position. “
Looking back, what would you say were the main takeaways or lessons learned from participating in the CFA Research Challenge?
Célestin Wanner:
“Reflecting on my participation in the CFA Research Challenge, several key takeaways stand out. Firstly, I could reinforce and apply in a practical case the knowledge acquired throughout my academic journey so far. The special coaching sessions with our tutor were invaluable, providing guidance and insights that helped us get on the right track. Despite the overwhelming workload at the start of the adventure, we learned that with careful planning and a step-by-step approach, and teamwork even the most significant tasks could be tackled effectively.”
“Participating in the CFA Research Challenge pushed me out of my comfort zone, but the rewards far outweighed the challenges. It was a transformative experience that not only tested my skills but also allowed me to grow personally and professionally. What’s more, after all those hours spent brainstorming and debating together, I’ve created strong bonds and lasting friendships with my team members. Overall, the CFA Research Challenge was an unforgettable learning experience that left me with invaluable lessons and memories to cherish thanks to the support and resources provided by EADA.”
The challenge includes determining material data for valuation and effective time management. Success is dependent on soft skills, team chemistry, research depth, and reasonable assumptions. While acknowledging the demanding nature of the challenge, participants emphasize the enriching experience and express confidence in meeting and surpassing expectations.
The CFA Research Challenge offers a platform for students to excel in analyzing companies like Fluidra, fostering personal growth, teamwork, and practical skills crucial for their future careers in finance.
The EADA community would like to congratulate the winning team of the 2024 Challenge!