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How the Cayuga Fund Operates
Student Portfolio Managers are selected from Johnson School students near the end of the first year in a competitive process based on academic preparation and achievement, strong analytical skills, demonstrated leadership, high ethical standards, and wholehearted commitment to excellence.
The selected managers enroll in the Applied Portfolio Management class (NBA 512), taught by Professor Sanjeev Bhojraj, for both semesters of their second year. Each member participates in one of seven teams that cover key economic sectors in the S&P 500. Based on rigorous research, they prepare and present proposed investment ideas to the class as a whole. The managers adopt positions only after a 2/3 majority agree in a formal class vote. Student course grades are based on their formal reports, presentations, and class participation, as well as portfolio performance relative to the sector benchmark.
Faculty Advisors and outside Investment Advisors (professional portfolio managers or research analysts, including many Johnson School alumni) work with students, providing resources and ongoing expert feedback in the investment process. Investment Advisors may be invited to attend formal class presentations in person or via teleconference. Student Portfolio Managers prepare a formal annual report on the performance of the fund, which they present to investors at the annual shareholders' meeting.
The Board of Directors has ultimate fiduciary responsibility for the Cayuga MBA Fund. The Board appoints an Investment Committee to oversee the investment decisions of the Fund. Each student stock recommendation must be approved by two Investment Committee members before it is implemented.
