The objective of the student managed fund (SMF) is to enrich student education through active participation in financial markets. Students assist in stock selection and management of a real portfolio, thus gaining hands-on money management experience. They learn to deal with the uncertainty inherent in the process of estimating stock value and contrasting it to current stock price. The process helps students to develop their intuition and provide a practical application for investment decisions.
The FSU SMF manages three investment strategies:
FSU Value Equity Strategy
The Value Strategy seeks to obtain maximum long-term capital appreciation while protecting the principal. The value strategy invests primarily in the common stock of companies, which the fund's management considers undervalued compared to their true worth. The fund searches for companies whose stocks are attractively priced and poised for a positive change.
FSU Growth Equity Strategy
The Growth Equity Fund seeks to achieve long-term capital appreciation through investing in common stock of U.S. and foreign companies with attractive growth opportunities. The goal of the fund is to outperform the market on a risk-adjusted basis. The strategy seeks out stocks with good growth potential. The strategy exploits mispricing by identifying companies whose earnings are expected to grow at a rate above that of its industry competitors and/or the overall market.
FSU Market Neutral Fund
The market neutral portfolio seeks to maximize return by maintaining both long and short positions. The strategy attempts to find risk premiums that are independent of market returns. Market inefficiencies can be exploited by identifying arbitrage opportunities that can be taken advantage of with limited and minimal risk.
|
