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Investment Strategy

Michigan Interactive Investments utilizes a multi-faceted investment strategy, involving both fundamental and quantitative analysis, to invest in equities, options, and fixed income instruments. We take a disciplined approach to investing, focused on a medium-term outlook for attractive returns while preserving capital. To that effect, we primarily use a bottom-up approach to source investment ideas, but also implement top-down and quantitative screening strategies to identify opportunities that will outperform our S&P 500 index benchmark. Additionally, we supplement this fundamental approach to investment selection with technical analysis to identify appropriate entry and exit points for our positions.

Fundamental Value
MII finds investments that are trading at a discount to their intrinsic fair value by implementing a Warren Buffett-style value approach. We employ a rigorous valuation process by building discounted cash flow models, comparable analyses, and sum-of-the-parts valuations to find equities that will outperform its peers while minimizing risk. We look for names with compelling investment theses that are expected to play out over the course of 6-18 months. These core fundamental holdings aim to optimize alpha while also providing beta exposure.
Special Situations
Ideas in the special situations category look to capitalize on short-term catalysts that will enhance overall returns by identifying exceptional opportunities. These allocations are focused on long/short, arbitrage, market neutral, and event-driven investments. Past special situation investments have focused on distressed debt, potential spin-offs, REIT conversions, and the unlocking of valuable assets such as land and wireless spectrum.
Global Macro
MII's Global Macro strategy leverages economic research to find trades which offer attractive returns given MII’s view of global economics and the geopolitical climate. This allocation may be focused on currencies, sovereign bonds, or exchange traded derivatives.

Performance

Industry Allocations

Performance (YTD 2019)

About the Fund

The MII portfolio was created with initial funding of $20,000 to provide members with an interactive portfolio management experience. The MII portfolio’s purpose is to provide Michigan students interested in finance with a hands-on investing experience. MII is the only student-managed fund at the University of Michigan with an open mandate to trade across our three strategies in a variety of asset classes. Students gain unique experience investing in equities, fixed income, currencies, and other alternative assets. Participation is open to undergraduate students, who have a passion for investing and a desire for continuing participation. We aim high to be the best performing student-run fund in the country on a risk-adjusted basis.