UCIMCO’s investment strategy involves two portfolios that provide students with different levels of experience opportunities to learn the art of investing.
New members to UCIMCO follow the value-driven strategy as described in Edgar Wachenheim’s Common Stocks and Common Sense.
New students learn a strategy in which they identify stocks that the market is likely undervaluing but have low bankruptcy risks.
- Identify stocks with low price-to-earning P/E ratios relative to similar stocks.
- Among the stocks identified, identify those issued by firms with low risk of bankruptcy
- Among the stocks identified, identify those that could generate rapid earnings growth ofone or two factors change.
Experienced stock-selection members use a growth-driven strategy as described by Michael Moe in his book, Finding the Next Starbucks.
More experienced stock selection members examine mega-trends across the economy and identify stocks which have a potential for high growth in the near future.
Advanced students manage an endowment style portfolio following the principles used by leading college endowment managers.
The Endowment Team consists of a small group of experienced undergraduate investors that invest across asset classes in order to reap the benefits of diversification. The Endowment team uses David Swensen’s Pioneering Portfolio Management as a guide for investing.
Our Portfolio’s Allocations and Performances
Since inception in November 2016, the Smith Fund has raised roughly $57,000 in contributions and generated roughly $3,000 in investment returns, bringing total assets under management to about $60,000. The fund is split into an endowment-style fund (about $55,000) and a stock-selection fund ($5,000). The split enables students with varying experience in finance to learn new things about investment management. The endowment-style fund invests in six exchange trade funds representing a broad swath of the equity, bond, and real estate markets. The stock-selection fund invests in three to six common stocks.