News and Events
Cayuga MBA Fund Generates 2.19% Return for the First Quarter 2007
May 1, 2007 | Ithaca, NY - The Johnson School at Cornell University today announces that the student run Cayuga MBA Fund, LLC, a market-neutral hedge fund, posted solid gains during the first quarter of 2007, returning 2.19 percent, compared to 4.58 percent for the HFR Equity Market Neutral Index and 1.66 percent for the HFR Equity Hedge Index. The Cayuga Fund continues to beat most benchmarks, including the Dow Jones Equity market Neutral Index and the Credit Suisse/Tremont Equity Market Neutral Hedge Fund Indices, up 1.26 percent and 2.75 percent respectively. The S&P 500 was up 0.64 percent for the quarter.
One of the quarter's stronger long positions was Medtox Scientific Inc (MTOX). Medtox Scientific designs and manufacturers laboratory testing equipment and provides specialty laboratory testing services. Bolstered by the announcement of 2006 results with operating income up 48 percent, an 11 percent increase in revenues, and its fifth straight positive earnings announcement, Medtox stock has increased 40 percent since the announcement.
Saifun Semi (SFUN) was one of the quarter's strongest short position performers. Saifun Semiconductors provides intellectual property solutions for the nonvolatile semiconductor memory market. Saifun Semi shares underperformed substantially in the first quarter mainly due to its below-expectation earning outlook for the first quarter of 2007 and the loss of a key customer.
The Cayuga MBA Fund is an investment vehicle that aims to provide a competitive rate of risk-adjusted return to its investors while enhancing the educational and professional opportunities of Cornell's Johnson School MBA students. It is supported by the analytical platform of the Parker Center, cutting-edge research by faculty members, and extensive participation by student portfolio managers. The Parker Center is a classroom providing real-time stock quotes, international data feeds, and financial analysis software and data valued at more than $1.8 million per year in licensing fees and comparable, if not better, than the resources found at many Wall Street firms.
The Cayuga MBA Fund is currently managed by 18 portfolio managers, two quantitative analysts, a trader, and an investor relations manager who, under the guidance of faculty and outside investment advisors, work to fulfill the investment objective of the fund to achieve consistent positive returns that are uncorrelated with equity market benchmarks, and to maintain significantly lower volatility than the broader market.
More information on the Cayuga Fund and the Parker Center
Contact:
Deirdre G. Snyder
Public Relations Officer
The Johnson School at Cornell University
(607) 255-3494
dgs37@cornell.edu
Lakshmi Bhojraj
Director of the Parker Center for Investment Research
The Johnson School at Cornell University
(607) 255-1135
lr10@cornell.edu
