The Student Managed Investment Fund

Set-up $50,000 gift in Fall 2005 Proposal written in November 2005 Proposal approved in December 2005 Students in the fall 05 “portfolio management course” made the first sectors allocation and security selections. The “fund” was fully invested on January 5 th The fund competes in the 2007 RISE Symposium Investment Competition and the GMO Investment Strategy Competition.

Investment Philosophy and Adapted Strategy Sector rotation/value stocks 2-path methodology: –Optimized and simulated sector allocation –Stock selection based on VaR (99% target) price Rebalancing: at least twice a year, based on the assumption that sector life is around 8 months.

Fund Management Process Managed by students in Portfolio Management Transactions: Schwab account ($12 a trade). As of now, requests for transactions have to be made to Siena administrators, transactions are executed by the Siena Finance Office. I have been approved to make transactions on students behalf, starting next week. Holdings’ (stocks), “stock candidates” and sectors’ reports are initiated at least three times a semester. Siena Stock Line and Siena Sector Line reports are made available to outsiders. A performance report is created at the end of the semester, so is the Siena Fund Newsletter. In Spring 2007, a new course “Student Managed Portfolio” will solely managed the fund. The course will be offered each semester and has a seminar format.

Performance First semester: beat benchmark by 700 bps; 80% of which came from (sector) allocation decisions. As of today, the fund is worth about $55,000 and has a cumulated return of about 10%.

How can you get involved? Please, come to my classes. Since the fund will be managed in a seminar course next semester: I need volunteers to come and talk about an investment topic, or lecture, or evaluate students presentations and recommendations. Help us finance the publication and dissemination of the newsletter. Please, suggest, criticize…help us improve this concep. Of course, if you have money to offer, we don’t mind having the kids managing it.