Mary Herlihy Opportunity Fund
Investment Policy In Brief
All student members of Skyhawk Investment Group, faculty advisors and its advisory boards agree to comply with the code of ethics and professionalism outlined in the CFA Institute Code of Ethics and Standards of Professional Conduct and will be obligated to read and be familiar with the Standards of Practice Handbook provided free on line at the CFA Institute website or as provided on E-Learn in BUS 327 and BUS 432.
The primary purpose of our Fund is educational in nature, providing opportunity and motivation for learning and application of the foundations of financial analysis, investment valuation and risk management. The Mary Herlihy Opportunity Fund is a student-run equity portfolio designed to provide SCIFI program participants with hands-on equity research, analysis and portfolio management experience. In addition, the fund management experience offers the opportunity for students to become more aware and better understand the implications of world events, the global economy, industrial innovation and the capital markets. It is also a vehicle for Stonehill students to better connect with alumni and other professionals in the field of investment finance.
Objectives and Philosophy
The Fund has a long-term investment horizon with no need for current income and therefore seeks investment performance based on total return and to outperform its benchmark - the Russell 3000 - on a risk adjusted basis. Liquidity requirements are modest. Active management of the fund is achieved by three dimensions: (1) tactical allocation across two broad asset classes - equity and cash, (2) tactical asset allocation within equity sectors and (3) security selection. As we push forward , the Fund will strive to be fully invested in equities or equity-like vehicles with modest exposure to cash. However, top-down processes such as macro analysis of the economy and market conditions can have an impact on asset allocation decisions in the short term. Tactical asset allocation within asset classes may be addressed with the use of ETFs. Bottom-up security analysis should be the driving force for asset allocation in the portfolio and each investment will be based on detailed fundamental analysis and investment valuation.
The analysts of the Fund work as a team to consider investing in undervalued stocks of good companies that have sound business and financial fundamentals. Investment recommendations (Buy/Hold/Sell) are based on research reports and valuation analysis that include a target price and investment thesis supporting each recommendation. Following a formal presentation, discussion, and satisfaction by the team that an adequate review has been done, a decision on the recommendation may take place. Each member of the team has a vote and a supra majority in favor is required to move forward.