2007 Headlines
Cayuga MBA Fund Generates 2.68% Return for the Fourth Quarter and 14.16% Return for 2006
January 9, 2006 | 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 each month during the fourth quarter and delivered a return of 2.68%, compared to 1.35% for the HFR Equity Market Neutral Index and 6.35% for the HFR Equity Hedge Index. In 2006, the Fund beat both its benchmarks and posted a return of 14.16%, compared to 4.76% and 9.23% for the HFRXEMN and the HFRXEH indices, respectively.
One of the quarter's stronger long positions was Omrix Biopharmaceuticals (OMRI). Omrix Biopharmaceuticals develops products for the biosurgical and passive immunotherapy markets. The company reported third quarter earnings that were well ahead of analyst estimates. The upside was driven by strength in immunotherapy products.
Neoware (NWRE) was one of the quarter's strongest short position performers. Neoware provides various computing solutions including client devices, software and services that enable users to run software applications on mainframes remotely. The fund has been short this position since early August 2006 and has seen its stock price decline significantly since mid-October. The stock's underperformance in the fourth quarter was mainly due to its third quarter sales and earnings shortfall.
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 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
