Darwin Fenner Student Managed Investment Fund

Catalog description

This course combines academic study with actual investing. As part of the course, students manage a portfolio of stocks for the university endowment. The following topics are discussed in the course: market efficiency, abnormal returns, factor models, interpretation of multiple regression outputs, relative valuation, portfolio theory, portfolio performance evaluation, and portfolio mean-variance optimization. State-of-the-art academic research papers and classic writings that have significantly influenced equity investing are studied. The assigned readings focus on empirical evidence regarding security and portfolio risk and returns. Through reading and discussing research papers and classic writings, students develop a critical thinking process and build proprietary investment models. Using their models, students analyze stocks in their assigned sector and give a buy, do not buy, hold, or sell recommendation on each stock. Students are also free to develop market-wide investment models to use across market sectors. Note: Students must apply and be invited by the finance faculty to enroll in this course.