Investment Philosophy & Strategy

The Auburn Student Investment Fund's approach to risk management and highly-selective adoption process has established a portfolio allocated into 15 holdings, comprised of single stocks, alternatives, and fixed income investments.

Capital preservation is the primary objective of the fund, followed by a satisfactory return against the benchmark. Risks are continuously filtered during the sector due diligence process and are highlighted during presentations. Through the emphasis on risk during the selection process and the nature of the portfolio's strategy itself, the Fund has been able to protect and grow its seed capital of $250,000, along with additional donations. 

The Fund has structured its portfolio around a core-satellite investment strategy, in which the sector selections seek to add positions that are forecasted to mitigate risks and increase the overall return of the portfolio. By holding the S&P 500 Index as the core position, the Fund is able to reduce unsystematic risks that may otherwise threaten non-diversified portfolios. Sector teams focus on identifying securities outside of the core position which the Fund should invest in as a satellite position, as well as determining which pre-existing positions should be reinforced. Each satellite position undergoes extensive due diligence before capital is allocated. Such due diligence includes: best-alternative screening, detailed equity research reports, forecast and valuation models, general fund consideration, and finally the approval from leadership, including the Chief Investment Officer and Portfolio Managers.