After a long and quite intense competition, most notably with Primus, Rising Investments managed to secure a victory this year and ends up being the indisputable winner of the Investment Competition. Despite having a return that is quite a bit lower than Primus’ return, 13.07% versus 60.62% respectively, their lower risk paid off in delivering them a superior M2 return.
All three groups did noticeably better than the market indices in Europe, the US and globally. Early on in the competition, Borsa and Primus were already taking the lead quite rapidly, with Rising following soon after. Primus in particular has had several tremendously successful investments, with one instance of them making over 90% on a pharmaceutical company and another where they made about 627% on DocData.
These high-risk investments do, however, result in an increased standard deviation, thus lowering the M2. That is why Rising managed, by steadily making profits, to beat both Primus and Borsa despite having a lower absolute return than both of them. Perhaps if Primus would have gone for all cash after their DocData investment they could have lowered their standard deviation enough to win in the end, but alas it is too late for that.
On behalf of the Editorial Committee, I would like to congratulate Rising Investments on their victory and thank you all for reading our updates and in-depth articles. We are very eager to see what next years’ competition will bring.
Written by Xander Gelink