How the Cayuga Fund Operates
The Cayuga Fund class (Applied Portfolio Management) forms the crux of the second year curriculum for students interested in pursuing investment management careers.
Students interested in becoming Portfolio Managers for the Cayuga Fund are selected in the spring semester of their first year in a competitive process based on academic preparation and achievement, strong analytical skills, and demonstrated interest in pursuing investment management careers.
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 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. The Cayuga Fund's results are audited every year. The fund is currently closed to all investors.
In addition to the Cayuga Fund course, Johnson offers several other courses tailored to meet the needs of future investment professionals.