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Philosophy
The undergraduate Student Managed Fund
employs a bottom-up approach to investing. Managers use value and growth
strategies to invest a portfolio of over $1 million, focusing on
companies with attractive risk to return profiles over a 5-10 year
horizon.
Strategy
The undergraduate managers split into teams whose responsibility is to
monitor a group of industries. Within these teams, Managers conduct a
business analysis of companies using the following indicators:
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Management
quality
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Brand
recognition
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Competitive
advantage
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Growth
opportunities
After conducting a business analysis, the managers perform a fundamental
analysis to determine the strength and stability of the potential
investment. The analysis focuses on:
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Price to
earnings ratio
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Return on
capital
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Free cash flow
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Level of debt
Using the above analysis, the managers are able to find attractive
companies to include in the portfolio.
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