MBP Capital, the LSE Student Investment Fund

Hey everyone, please find another Global Macro pitch from our Macro Analysts below. This pitch is a US Yield Curve Trade idea - long 2Y bonds, long 10Y bonds and long 10Y puts. 

As the end of term approaches, we are delighted to share the work of our Macro Analysts on trade ideas between major FX Pairs. Please check out the Long EURGBP pitch with a 3-9 month investment horizon and a short GBPUSD pitch, both created by teams of our Macro Analysts! Stay tuned as we will be uploading the pitches and technical primers that our Macro team created throughout our Analyst programme over the coming days! 

After the fund’s first Investment Committee of the semester, we have decided to initiate a LONG position on Interactive Brokers (NASDAQ: IBKR), a leading electronic trading platform, at $77/share with an expected IRR of 23%. As IBKR continues to grow its client base, an increasing share of revenue will be from net interest income, regardless of the speed or magnitude of rate cuts. We think the market is overreacting to how sensitive IBKR’s intrinsic value is to interest rates. IBKR is also well positioned to capture market share in the fast-growing and hard-to-break-in brokerage market in Asia. Within this largely unpenetrated market, it has attracted young and tech-savvy investors with its wide range of international market access and advanced technology. Additionally, we think IBKR will continue to win more hedge funds as clients, especially those with AUM from under $50mn to $500mn. These hedge funds tend not to be clients of the big banks, so IBKR’s superior technology, wide range of tools, and flexibility offered at a lower cost are highly appealing. Overall, we believe that IBKR is a great company at an attractive price of 13x forward P/E. We will continue to monitor the company and provide updates on this position. By: Sarah Baek

Macro review is a weekly Global Macro research note published by our Analysts. It covers recent events in Macro and their effects across asset classes and industries. Macro review is our flagship weekly research analysis used by our members to stay up to date with the markets. We are delighted to be sharing our Analyst's research as the year progresses. This post showcases our Analysts' Macro research for October - we hope you find it insightful!

We are excited to announce that applications are open to join MBP Capital, the LSE’s foremost real money student investment fund, for the 2023/24 academic year. In the coming year, MBP Capital will be recruiting for both its Bootcamp and the Analyst Programme. MBP Capital will be running an 8-week Bootcamp for both its Fundamental Equities and Macro teams. Selected applicants will be taught the basic skills required to source for, do diligence, and execute investment ideas. Top candidates will be selected and minted as full-fledged MBP Capital Analysts. Candidates with prior experience can apply directly for the Analyst Programme by submitting a pitch. Info/Q&A Session: To help you with your application, we will also be hosting 2 Q&A sessions: 1. Zoom: 2nd October, 3-4pm 2. On campus: 5th October, 6-7pm You can register your interest here: https://lnkd.in/eydV_hrz Application: With that in mind, we invite you to send an application via the link below. As we will cover in the info session, it is possible to apply for the (1) bootcamp or (2) as an analyst. 1. Bootcamp applicant: The bootcamp will be where we expect to select most of our analysts, after an 8 week programme either for fundamental equities, or macro. - Link here: https://lnkd.in/eeQSgr86 (due 8th October, 2359) 2. Analyst applicant: The analyst application will be for candidates who are confident in their ability to contribute to the fund, and will be assessed based on a short pitch submission. - Link here: https://lnkd.in/e9YydyBg (pitch + form due 15th October, 2359)