The Student Investment Fund is a diversified portfolio of common stocks following a small- to mid-cap value investment style. The fund’s focus is on stocks that are selling at a discount to their intrinsic value. The fund maintains a weighted-average price-to-book ratio below that of its benchmark index. Securities of firms with market capitalizations in excess of $5 billion are not purchased. The fund is managed with the intention of obtaining the highest possible total return consistent with maintaining prudent risk.
Securities eligible for purchase include stocks trading on the New York Stock Exchange (NYSE Euronext), American Stock Exchange (AMEX), and National Association of Securities Dealers Automated Quotation system (NASDAQ). Listed Level II and III American Depository Receipts (ADRs) are eligible for purchase. No explicit “social investment” screens restrict purchase of any security.
The fund limits purchases of individual equity securities, so the position does not exceed 10 percent of the total market value of the portfolio. Ideally, no more than 5 percent is allocated to any one stock.