The Kantor Challenge is a portfolio of under-valued small and mid-cap US equities, allocated across six sectors—financials, consumer discretionary, health care, technology, industrials, and another category. The main objective of the fund is to provide a learning experience to students through the real-time management of assets. The Kantor Challenge serves as the preeminent training platform for students as they work their way towards managing the live money within the Wildcat Investment Value Fund (WIVF). While this fund represents a relatively new endeavor, students for the past 15 years (since 2000) have used the globally recognized leader in simulation trading, StockTrak, to actively manage simulated portfolios in multiple required finance courses (i.e. FISV 3001 Investments, FISV 3005 International Finance, FISV 4040 Futures Options, FISV 4050 Portfolio Management, FISV 4060 Fixed Income).
The financial objective of the Kantor Challenge is to achieve long-term capital appreciation and seeks to outperform the iShares Russell 2000. Required stock selection criteria utilized for fundamental analysis include economic analysis, sector analysis, and key metrics. To quantitatively support investment decisions, the Kantor Challenge managers employ industry-recognized practices in Financial Modeling of unleveled discounted cash flows, and capital asset pricing models, in conjunction with other financial models, aiding students in making the most informed decisions possible.
Management of the Kantor Challenge is handled by nine student interns enrolled in the 4.5 credit FISV 4099 Kantor Challenge internship, over 3 consecutive terms (Fall-Winter-Spring), and 3 summer interns enrolled in the 13.5 credit FISV 4099. To apply for this internship, a list of possible candidates is prepared by Finance student leadership from a pool of qualified students, which is then sent to the fund’s faculty adviser for preliminary approval, before being sent to the Chair of the Department of Accountancy and Finance, and the Dean of the School of Business.
The internships are comprised of five sector analysts, three senior members of the Kantor Challenge operating committee, and one Portfolio Manager who is responsible for collecting all investment decisions, along with the corresponding justification backing each decision. The advisory committee, comprised of three university members and three industry members, is responsible for monitoring the academic merits supporting the Kantor Challenge. The Finance and Investment Academy (FIA) faculty advisor serves as the Kantor Challenge internship advisor, and the Accounting Association faculty advisor serves as the Kantor Challenge advisor to the Chief Compliance Officer.
The ethos of Johnson & Wales University is within the realm of experiential education. Thus, the Kantor Challenge provides a direct parallel to the ideals of Johnson & Wales University. Carefully grooming underclassmen students within the School of Business by teaching, guiding, and mentoring, has empowered Wildcats of present and future to successfully participate in the manifestation of our University’s core values. By providing the forum for students to actively engage in managing the Kantor Challenge, under the watchful eye of educators and administrators alike, Johnson and Wales University students undoubtedly have the opportunity to “experience [their] future now”, by participating in this invaluable educational opportunity.