On Monday, May 7, 2018, Quoniam Asset Management GmbH honoured Frankfurt School of Finance & Management students with the “Quoniam University Prize” for the third time. For their outstanding seminar paper "Smart Beta Strategy with Growth Net Operating Assets” Robert Bachmeier, Mario Bucek, Eduard Erdman, Niclas Geissler and Brian Takacs, who are all studying in the sixth semester of the Bachelor of Science in Business Administration, won the first prize, worth 3,000 euro. At Westhafentower, headquarters of Quoniam, Helmut Paulus, CEO, together with Dr Sascha Mergner, Head of Equities, awarded the prize to the winners. Professor Dr Olaf Stotz, Professor for Asset Management at Frankfurt School, as well as the business school´s supervisor of the cooperation, also attended the event.
In their research the students analysed how economic growth affects the share performance of an enterprise. Moreover, the group evaluated the impact of the growth factor in corporate values in order to find out how it affects the long-term performance of company shares. Reason for the group´s research was the floatation of the multimedia messaging app Snapchat in 2017. Because of a high increase of users the year before, the shares were highly rated. However, the growth did not continue. The result: No more ad revenue and a massive loss in share value.
As a result, the students found out that growth is not the only indicator for the success of a company. According to the group´s research qualitative growth is more important. Also, the research showed that shares with a moderate growth shape up well.
“Crucial for winning the prize are an empirical validation as well as a theoretical deduction. Moreover, innovation and practical relevance are essential”, says Helmut Paulus. “We are more than happy to once again honour very ambitious students”.
Professor Dr Olaf Stotz was impressed by the student’s commitment. “To conduct this challenging project in addition to their job shows how ambitious and resilient our students are. Furthermore, it shows that they are able to put theory into practice”.
In addition to the prize money a summary of their work will be published in Quoniam´s magazine quantletter – a bilingual investment journal for 1.000 global institutional investors.