The history of the Rutgers student managed fund

The Rutgers University Undergraduate Student Managed Fund (Rutgers SMF) is an investment fund created by LIBOR members for the undergraduate community at Rutgers. Founded originally as the LIBOR Hedge Fund Live desk by a group of 8 traders, it offers members a unique, hands on experience in the field of portfolio management and equity research.  The ultimate goal of the fund is to educate its members and strengthen their knowledge of the financial markets.  The fund achieves its goal by holding weekly meetings in which members discuss various investment strategies and analyze current events in the economy. The fund also holds occasional seminars for its members where new valuation and investment techniques are discussed.

The fund has sub-portfolios, distinguished by the multiple sectors.  These sectors include Energy, Healthcare, Technology, Industrials, Financials, Consumer Goods, and Real Estate.  Members are placed into a research desk which consists of a senior analyst and 3-5 junior analysts.  Each desk is designated an equity sector must present a briefing of their concentration during our weekly meetings.

The senior analysts are members who are generally more experienced than the junior analysts and may have invested/traded their personal capital in the past. The senior analysts role in the desk consists of mentoring the junior analyst and performing research by using a quantitative approach. The senior analysts research will include in depth analysis of the driving factors of an investment. Such approaches include various valuation methodologies such as discounted cash flow valuations and relative valuations. In terms of commodities and currencies, the senior analysts will put emphasis on different macroeconomic trends. In performing their research, the senior analyst will assist the junior analyst in expanding their scope of quantitative methodologies.

The junior analysts are members who are new to the field of investing, but have a genuine interest in the financial markets and are hungry to expand their knowledge. The junior analysts role in the desk consists of working with the senior analysts in performing research by using a qualitative approach. Through this process, the junior analysts begin to grasp many key concepts in evaluating different investment strategies.