Q&A with Àlex Bové Díez from the Esade Investment Group
Àlex Bové Díez is studying Business Administration at ESADE Business School, and will graduate in 2012. He was part of the team, Esade Investment Group, which finished second in the investment challenge.
What strategies did you take to gain an edge in the trading game?
We were relatively obsessive about it, to the point where I could barely concentrate on studying for my exams!
Our initial strategy was investing in companies with great fundamentals, and even when we were losing money we didn't get nervous. We just waited and the stocks went up again, but we soon realised that a month wasn't a great deal of time any sort of long-term strategy. So we began to invest by following technical analysis, news sources, annual 2009 results and key decisions from the FED and ECB. We finished 8th in this round.
What was the next stage?
We had to write a strategy investment report about the trading game and then a second report on opportunities in the commodities market for a portfolio proposal. My friend Dmitry was took the lead here - the other four members just helped where we could - but he submitted two brilliant reports and, unexpectedly, we got through to the final round in London.
What did you get out of the insight week at BoA-ML?
We got a great idea of the purpose of an investment bank and how they're structured. We also had the opportunity to speak to vice-presidents, financial analysts, traders, M&A specialists and more. Networking sessions were also great, but it would have been better if we'd had the chance to meet more bank employees.
It changed the way I thought about my career and has prompted me to asked myself about whether I want to live in London and work as an M&A advisor. I still don't know the answer, but it seems a like great option for me in the near future.
So, how did you manage to gain second place overall?
The final competition was a tough one. We were expected to create a commodity index for passive investors, which required both technical and fundamental knowledge. Initially, I had no idea how to do this, and we didn't have too much time to find it out. The approach we made to the question was relatively original, and we managed to achieve second place.
Are you now keen on the prospect of an investment banking career?
Clearly, investment banking offers an exciting career, but it also requires sacrifice and dedication. I loved the M&A section of the bank and it's the most difficult job I've ever heard of.
You spend an unbelievable number of hours working and are given extraordinary remuneration to reflect this, but I still have some doubts about the impact on your social and personal life. People have told me that M&A is like giving your soul to the bank in exchange for a big pay packet. I don't know if that's true, but if the opportunity comes for me, I will seriously consider it.
