Three Culverhouse students — Jacob Robb, Caleb Claiborne, and Jarrett Mozingo (L-R, pictured) — represented Culverhouse and the Capstone Investment Management Group (CIMG) at the Balyasny Asset Management Stock Pitch Competition on October 18th, placing first and winning a $3k prize.
Out of the 45 universities that initially entered the competition, the CIMG group was chosen alongside Marquette University, Princeton University, the University of Michigan, and the University of Toronto to compete in the finals held at the firm’s New York City office.
The students pitched a short of Live Nation Entertainment (NYSE: LYV) to a panel of portfolio managers at the firm. A short, explained CIMG faculty advisor Dr. John Heins, is a bet that a stock price will go down from its current level. The students predicted that next year the company will face a falloff in the number and quality of big-name music concerts, a primary driver of its revenues and profits. In recommending a short, the group argued — after considerable and unique quantitative and qualitative research — that the stock market today in pricing Live Nation’s shares appears to be overly optimistic about how positive the upcoming concert slate will be for the company’s financial performance.
CIMG is a student-run investment fund managed by select students at The University of Alabama with oversight from an advisory board and faculty advisors. The group prepares young professionals for careers in a variety of competitive fields both in and out of the finance industry. CIMG uses a value-based, equity-only investing philosophy to actively manage a $2,000,000 portfolio.