Rigorous. Dynamic. Effective.
MII is not your traditional investment club and nothing reflects this better than MII’s unique student-run portfolio. By implementing a multi-faceted investment strategy, the MII student run portfolio has outperformed its benchmark each year since inception more than a decade ago. Through both fundamental and quantitative analysis, MII implements investment strategies that may be classified into one of the following allocations:
Benchmarked to the Citigroup 3-Month T-Bill Index Through rigorous company, industry and index research, MII hedges out various beta components of an investment by taking both long and short positions. MII’s Alpha Overlay looks to enhance portfolio returns while minimizing added risk. Acceptable investments are comprised of a single long position combined with at least one short hedge.
Relative Value Strategy
Benchmarked to the S&P 500 Index This portion of the portfolio is focused on investing in mid- and large-capitalization American and foreign equities. MII has two overarching goals for the Relative Value portfolio: exceeding the market benchmark and minimizing risk and portfolio volatility. MII accomplishes these objectives through fundamental company and industry research. Relative Value investments are long-only equity investments focused on optimizing potential alpha while providing beta exposure.
Special Opportunity Strategy
Benchmarked to the Credit Suisse/Tremont Hedge Fund Index The primary objective for this portion of the portfolio is to enhance overall returns by identifying market opportunities that the club believes will generate exceptional returns. MII accomplishes this objective by analyzing current market conditions and identifying shorter-term investments that will generate high returns. This allocation is focused on long/short, arbitrage, market neutral and event-driven investments. Acceptable investments are not limited, and may include common and preferred equities, listed and OTC notes/bonds, derivatives and currencies.
The Income Generation strategy seeks to invest in common/preferred equity or fixed-income instruments providing attractive risk-adjusted returns based on dividend or coupon distributions. This strategy looks to reduce volatility in our underlying principal balance of our portfolio while generating income to supplement more risky-investments.