New Managers Take Over Cayuga Fund
Sean Alexander '01 and George Sent '01
Issue date: 10/5/00 Section: Johnson News
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The Cayuga MBA Fund is a student-managed portfolio with assets over $2,600,000. The Fund consists of twenty-one students, who attend Professor Charles Lee’s Applied Portfolio Management class. Do students start the year choosing stocks randomly? No. The first month of class is devoted to understanding the theories behind momentum and value investing. Furthermore, the students are introduced to the latest academic research (including that by Professors Lee and Swaminathan) to learn ways to differentiate between winners and losers.
Within a month, the student managers combine their in-class learning with valuation techniques gained last year and over the summer to evaluate assigned sectors (listed below). They start by presenting a broad overview of their sectors to the class. Soon thereafter, recommendations are made on which stocks to add or remove from the portfolio; a two-thirds majority vote is required.
Investment Philosophy
The Cayuga MBA Fund seeks to achieve its objectives through a diversified portfolio of primarily equity securities that meet the fundamental and technical specifications adopted by its managers. The Fund's managers believe that, in a dynamic market, security prices sometimes violate sensible risk/return boundaries. The fund seeks to identify and exploit these opportunities through large-sample quantitative techniques and detailed fundamental analysis of specific companies. Fund managers will leverage the research and analytical capabilities provided by the Parker Center for Investment Research. Particular emphasis is given to investment strategies that have demonstrated their validity in academic research.
The New Portfolio Managers
As a new class of portfolio managers, our mission is to continue the good work that the class of 2000 completed, and we look forward to a prosperous and rewarding year. New PM’s were selected in the second semester of last year, and we already have become involved with the development of sector reports and research on potential investments for the fund. The group of PM’s for 2000/2001 are as follows, each has been assigned a sector and research focus:
Portfolio Managers and Sectors
Betty Ng & Chad Updyke, Communications & Media