Objective:

Beat the MSCI World Equity index (iShares ticker ACWI) through managing a long-only equity portfolio. Learn to manage a large X billion institutional portfolio.

Risk Controls:

• Long only fund
• Minimum 20 stocks
• The general “5/10/40” rule requiring that no more than 10% of a UCITS net assets may be invested in transferable securities issued by the same body, with a further aggregate limitation of 40% of assets on exposures of greater than 5% to single issuers
• + / – 10% maximum over/underweight relatively to the sector classification
  • Preferably using the Global Industry Classification Standard – you can find weights by looking up the iShares MSCI ACWI ETF on the internet and likely in Bloomberg
• Max 10% cash
• Assets Allowed: Transferable securities and mutual funds are allowed only in the case of equities or equity only funds, and bonds just for cash allocation purposes
• Assets Not Allowed: physical short selling, CDS, real estate, bank loans, physical metals, physical commodities, derivatives & CFDs, derivatives.

Transaction Costs:
If possible, trades will be charged an X% transaction cost. While typical out of pocket costs are $0.05 or less per share for an institutional fund, overall costs which includes delay, market impact, etc. brings the cost to X%. You will receive closing prices on the day shares are traded.