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 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.

New members interested in joining the fund should apply through the RUSMF website.  The fund is always open to receiving applications, and new applicants will be interviewed by the Portfolio Managers. The fund is required to meet once per week throughout the academic year, with the exceptions of exam periods. The meetings are held in person and all members are expected to attend, although exceptions are made for personal emergencies. During these meetings, members discuss the developments of the financial markets in the past week and how the following week will play out.  Each sector head is also expected to provide a briefing on their equity sector.  Afterward, a scheduled sector is required to make an investment pitch based on their research. The floor is then opened up for discussion on this pitch.

Throughout the semester, senior members from the fund hold seminars to better educate members of the fund and members of LIBOR. These seminars are open to everyone and provide an unparalleled opportunity to learn about different investment techniques and financial markets. Throughout these activities, LIBOR and the fund prepare competitive, well rounded students for the most prestigious positions in the field of finance.