A ‘hedge fund’ is money put aside for gardening, ‘gearing’ is something to do with cars and ‘liquidation’ is what happens when your ice lolly melts. Most young people simply do not understand financial jargon, but later in life when they miss out on investment opportunities, they will really wish that they did. …Not so for our savvy young investors at Embley.
Embley Asset Management (EAM), a team of fund managers aged ten to fourteen, outperformed the FTSE 100 index by 5.08% over the period 31st December 2019 to 31st May 2020; particularly impressive considering the 2020 stock market crash which began on the 20th February. The sheer speed at which stock markets lost value put this decline into the same league as the Wall Street Crash of 1929.
So how did they do it?
Chief Investment Officer of EAM, Simon Brooks, puts it down to a number of factors: “The diversification in company size and choices of industry meant that even during the times of highest velocity the overall portfolio was always in contention to beat its benchmark.”
Simon, who has over 25 years’ experience as a fund manager, was extremely impressed with the Club members’ exceptional team working skills and the maturity that they showed.
Embley Prep School teacher and Share Club facilitator Mrs Ross commented: “Embley are hugely proud of this incredible co-curricular club which is totally unique in the UK. It provides a wonderful opportunity to stretch and challenge our Prep and Senior pupils.”