Two undergraduate teams from the University of Miami Patti and Allan Herbert Business School recently competed in the CFA Institute Research Challenge, a rigorous investment analysis competition, held annually and organized by the CFA Institute, a global association of investment professionals that sets the standard for excellence in the industry for chartered financial analysts (CFAs).
For those who might not be familiar, CFA stands for Chartered Financial Analyst. What the bar exam is to attorneys, a CFA exam is to analysts working in the investment industry. Having a CFA certification is proof positive in more than 200 countries worldwide that the person holding the title is on top of their game.
The CFA Institute Research Challenge doesn’t lead to a certification, but it does test the ability of students to analyze a corporation, value its stock, and then provide a recommendation on whether the shares should be acquired or sold.
This year’s target company, MasTec, Inc., is a multinational engineering and construction company based in Coral Gables, Fla., that has nearly 22,000 workers and a $6.84 billion market cap. The six teams involved in the 2024 CFA Institute Research Challenge began the arduous task of evaluating MasTec back in November 2023.
Guillermo Rodriguez, a CFA who’s overseen the CFA Institute Research Challenge at Miami Herbert for the last four years, slowly walked to the front of the conference room to address his anxious charges.
“I’m going to ask the three judges to provide some general feedback on your presentations,” Rodriguez said. “I think it’s valuable for all of you, and they spent the whole morning out of work, here, looking at your presentations. And then, we will announce the winners.”
Dressed in business attire and on the edge of their seats with anticipation, around 20 students from the University of Miami, Stetson University, and the University of Florida waited quietly in a conference room at Miami Herbert, eager to find out if their months of hard work were about to be rewarded.
The tension was nearly palpable by the time Rodriguez announced that a five-member team of Miami Herbert students, one of two teams competing in the CFA Institute Research Challenge, had come in third.
A Florida State University team that presented online was second, while the overall winner was Stetson University, the same school that took top honors last year.
“One of the things you’ll learn, especially with equity analysis, is there’s no right or wrong answer,” judge Kimberly Arguello, MBA ’08, said afterward. “It’s really, what is the data, how do you interpret that data, and what do you do with the information? Everyone did a great job.”
Brittany Knowles, a senior majoring in finance and minoring in business technology, saw plenty of positives in having a chance to compete.
“I definitely do want to get my CFA,” Knowles said. “It’s a blessing to have the CFA charter holders here, talking with us, giving us an opportunity to represent our school. It’s a great opportunity.”
