Vying for First in a Volatile Market

The Cutler Center Finance Lab
Listen

The last three months have been some of the most tumultuous in the history of the stock market.

After the Dow Jones and S&P 500 reached soaring highs in February, the coronavirus outbreak upended the market, sending many stocks plummeting to relatively meager levels.

Simultaneously, Babson College’s Stephen D. Cutler Center for Investments and Finance was preparing to host its Stock Picking Competition as part of its 20th anniversary celebrations. During this competition, students and alumni would go head to head, investing fictitious money based on the current market in order to vie for real cash prizes.

A stock competition veteran, James Cheng ’20 felt he was in the perfect spot to take on this learning opportunity in real time before heading off to work for Wells Fargo Investment Portfolio after earning his degree in May. 

Highs and Lows

A rapid shift between strong and weak markets presents a greater possibility for a high return on investment. Cheng’s competition strategy was to take full advantage of that opportunity.

“There isn’t a downside if you lose a lot of money, you can pile on a lot more risk,” he said. “That’s what it ends up taking to win the game.”

With more than 80 students competing for the highest return, those risks would prove to be necessary. Cheng said he put himself in the best position to succeed by allocating a few hours each week for research.

“We’re definitely in something of a downtown or recession,” he said. “Even in those times, not all stocks are losers, there’s always some winners.”

Patrick Gregory, senior lecturer and managing director of the Cutler Center, said the competition offered a chance to engage students outside the classroom. The volatile market made the experience that much more valuable.

“It forced the students to consider the impact that COVID-19—and the measures taken to contain it—would have on industries and companies they were considering for investment,” he said.

Great Experiences, for a Great Learning Environment

In the second-to-last week of the competition, Cheng woke up to an email from program manager Leslie Romiza to find out he was in first place. Though he worked to maintain his position, late market movement in the final week led to a second-place finish.

“Odds of me winning anything out of 82 people are pretty slim,” Cheng said. “In this kind of environment, it’s really hard to say which way things are going.”

His winning stocks were Papa John’s Int’l., Advanced Micro Devices, and Direxion Daily Gold Miners.

“Pizza is recession proof. … (And) gold is king in this kind of environment,” he said.

“We obviously had no idea of the environment that we would be running this competition in,” Romiza said. “It turned out to be very timely and provided both students and alumni an opportunity to closely follow what was going on in a risk-free way.”

Cheng’s advice to students keen on a career in trading and finance is to invest in yourself by keeping a pulse on the economy.

And, to use the resources the College makes available.

“Babson offers a lot of great experiences,” Cheng said, mentioning the Babson College Fund and Babson Trading Competition, where some winners go on to the Babson Trading Team. “That creates a great environment for learning.”

Posted in Community

More from Community »

Latest Stories

Children play outside
What Outdoor Play Taught Me About Entrepreneurship and Human Connection Brian Fitzgerald ’95 co-founded Tinkergarten, building an outdoor, early childhood education business to help solve the dilemma of children’s screen time. Here, he reflects on the lessons he learned about solving problems and the importance of going outside.
By
June 5, 2025

Posted in Entrepreneurial Leadership, Insights

A woman sits at a desk and thinks
How Entrepreneurs Can Navigate This Unpredictable Moment in Business Tariffs, a volatile stock market, and a sense that anything can change in an instant—these are uncertain times to be an entrepreneur. Babson’s Ben Spigel offers strategies for navigating this chaotic moment.
By
John Crawford
Senior Journalist
John Crawford
A writer for Babson Thought & Action and the Babson Magazine, John Crawford has been telling the College’s entrepreneurial story for more than 15 years. Assignments for Babson have taken him from Rwanda to El Salvador, from the sweet-smelling factory of a Pennsylvania candy maker, to the stately Atlanta headquarters of an NFL owner, to the bustling office of a New York City fashion designer. Beyond his work for Babson, he has written articles and essays for The Philadelphia Inquirer, Notre Dame Magazine, The Good Men Project, and other publications. He can be found on Twitter, @crawfordwriter, where he tweets about climate change.
June 4, 2025

Posted in Entrepreneurial Leadership, Insights

Warren Buffett
Buffett Retires: Babson Professors Highlight Lessons from a Historic Transition Warren Buffett’s retirement is more than a milestone, Babson thought leaders say. It’s also a masterclass in thoughtful succession and cultural continuity.
By
Hillary Chabot
Writer
Hillary Chabot
Hillary Chabot is a writer for Babson Thought & Action and Babson Magazine. An award-winning journalist, she is known for her insightful reporting and dedication to detailed storytelling. With a career spanning over two decades, she has covered a wide range of topics, from presidential campaigns and government policy to neighborhood issues and investigative series. As a reporter for The Boston Herald, Hillary earned a reputation for tenacity and integrity. Her work at Babson College fuels her passions—to learn something new every day and conduct thoughtful, empathic interviews. She’s thrilled to be at Babson College, where students, faculty, staff members and classes provide compelling copy daily.
May 30, 2025

Posted in Community, Insights