Undergraduate SMF

The Student Managed Fund (SMF) is an unleveraged, long-only domestic balanced portfolio that uses a top-down asset allocation strategy in an attempt to outperform the S&P 500, as well as all other University of Massachusetts investment groups. The strategy is to maximize returns by tactically allocating assets between attractively priced sectors of the domestic equity market and U.S. Treasury bonds. SMF aims to provide a consistent return relative to risk.

Certain identifiable relationships exist between economic conditions and market sectors. Short-term disconnects in this relationship can occur and create attractive prices in the corresponding sector.
There are a variety of factors that create dislocations in market sectors, which include extreme fear and greed, institutional and regulatory constraints, distressed selling, and trend following.
These disequilibrium catalysts are deeply embedded in the market structure and will persist.
Specialized research teams can identify and exploit periods of disequilibrium by tactically allocating assets to attractively priced market sectors.


Wise Words

“Be fearful when others are greedy. Be greedy when others are fearful”
— Warren Buffett —

“It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.”
— William O’Neil —

"Investing without research is like playing stud poker and never looking at the cards."
— Peter Lynch —