Thinking small wins big
On May 4 and 5, the John Molson School of Business (JMSB) played host to a very different sort of case competition. The inaugural Van Berkom-JMSB Case Competition, which was created to promote the virtues of well chosen small-capitalization (small-cap) stocks, was the first of its kind in Canada.
Small-cap stocks are those with a relatively small market capitalization. That is, with a comparatively low total value of tradable shares. Generally, the shares of a firm whose market capitalization is between $100 million and $2 billion would be considered small-cap.
The graduate-level competition was established through a donation by Sebastian van Berkom, founder and CEO of Van Berkom and Associates, a specialized investment management firm that focuses on small-cap equities. Van Berkom’s gift provides enough funding for the competition to be run for the next five years.
According to Reena Atansiadis, a lecturer at JMSB and supervising professor of the competition, small-cap investing allows for bottom- up stock picking and the pursuit of abnormal returns. “This case comp is a unique forum where students can value and recommend small-cap stocks in keeping with Van Berkom and Associates' investment philosophy — picking small cap stocks that outpace the overall market and are trading at a reasonable price.”
Six teams of graduate students from five Canadian universities competed this year for a total prize pool of $10,000, also donated by van Berkom. The winners were announced at a closing gala at Le Place d'Armes Hotel. Ultimately, the JMSB team took home the top prize. The team from McMaster University’s Degroote School of Business came in second, while third place went to a team made up of alternates from the competing universities.
Atanasiadis believes that case competitions such as this one are essential to graduate-level business education. “Unlike examinations or assignments that provide a lifeless platform to demonstrate abilities, a case competition requires participants to come up with sparks of brilliance on demand, in front of experts who judge not only content but delivery. It is one of the few occasions where everything you learn as a student and everything you are as a professional is showcased.”
The event organizers, JMSB MBA students Gabriela Gomez, Rabia Khan and Cedrin Law, were delighted by how well the competition was received. “We were extremely proud of the first edition of what is sure to become a prestigious annual finance case competition at the graduate level,” said Law. “Mr. van Berkom was very pleased and looks forward to seeing what JMSB will do for the 2013 Van Berkom-JMSB Case Competition.”
Related links:
• John Molson School of Business
• Van Berkom and Associates