Investment Philosophy:
The Duke Investment Club manages a long-only equity mutual fund wholly owned by our student shareholders. We employ a fundamental approach to equity research and make investment decision with a secular (at least 2 to 5-year) time horizon. Loosely defined, we consider ourselves value managers. This means we look to purchase stocks trading significantly below their intrinsic value. This can include anything from a large cyclical company that is currently out of favor in the market, to a start-up whose growth prospects justify a higher intrinsic value. Although our investment approach leans to the conservative side, we don’t limit our universe of equity investment opportunities—and indeed our fund does not fit neatly into a particular style box. Our investment objective is to consistently outperform the benchmark S&P 500 index.
To this end, our fund is typically concentrated in about 20 equally-weighted positions—which is significantly less than most equity mutual funds. We believe a focused portfolio has a greater probability of generating above-market returns. Not to mention, we feel we are more capable of understanding and monitoring 20 companies, as opposed to, say, spreading ourselves thinly over 100 positions. We attempt to represent as many of the 10 GICS sectors as possible in our portfolio, but do not guarantee complete sector diversification. As such, our portfolio will usually underweight and overweight a given sector relative to the overall market. We intend to hold enough cash to meet occasional redemptions without unloading positions, but may hold a larger cash position at any time.
Current Holdings:
Name |
Ticker | Price |
Apache Corporation |
US:APA |
61.55 |
Anheuser-Busch Companies, Inc. |
US:BUD |
0.00 |
Citigroup Inc. |
US:C |
4.71 |
CBS CORP DE |
US:CBS |
4.51A |
CMGI Inc. |
US:CMGI |
0.00 |
Cisco Systems, Inc. |
US:CSCO |
14.47 |
Dell Inc. |
US:DELL |
9.81 |
Home Properties, Inc. |
US:HME |
26.00 |
Kohl's Corporation |
US:KSS |
24.98 |
Southwest Airlines Co. |
US:LUV |
7.76 |
ALTRIA GROUP |
US:MO |
14.45 |
Marvell Technology Group Ltd. |
US:MRVL |
4.78 |
Nissan Motor Co., Ltd. (ADR) |
US:NSANY |
6.60 |
Oracle Corporation |
US:ORCL |
15.40 |
Pfizer Inc. |
US:PFE |
14.45 |
Tim Hortons Inc. |
US:THI |
20.57 |
Viacom, Inc. |
US:VIA |
13.09B |
Wendy's International |
US:WEN |
2.89 |
Washington Mutual, Inc. |
US:WM |
0.00 |