Red & Blue
Partners is a limited partnership investment fund
organized to support student education in investment
management. Qualified seniors majoring in Investment
Management and meeting certain prerequisites and
performance requirements are primarily responsible
for managing the investments of Red & Blue
Partners. These students are appointed to positions
as fund managers and, with the approval of Red & Blue
Advisors, the general partner of the fund, evaluate
and select investment opportunities to be included
in the Red & Blue portfolio.
The student investment
experience is guided by specific guidelines for
the fund and adheres to accepted screening techniques,
sector analysis, fundamental security analysis
and a structured decision process. Students enroll
in a two-semester Fund Management course that
utilizes the research resources of the Duquesne
University Investment Center as a complement
to classroom discussion. Faculty and outside
investment professionals oversee the process
through Red & Blue Advisors,
but the investment decisions are largely in the
hands of well-prepared students. A separate team
of accounting students monitors the activities
of the fund for compliance with investment policy,
maintains accounting records for the fund and prepares
financial statements and tax reports for distribution
to investors.
The Red & Blue Partners fund
seeks to earn a competitive return that outperforms
the Russell 2000® Index. This benchmark provides
students with exposure to smaller companies that
have market capitalization of under $10 billion.
Following value-based principles, students perform
analysis to estimate the value of a firm, given
forecasts for future performance and an analysis
of current operating performance. This analysis
is compared to the current stock price of the firm
and a buy-holdsell recommendation is presented.
Student teams critique the analysis and the recommendation
is taken to a vote. If a majority of the students
support a "buy" recommendation, following
a confirmatory review by Red & Blue Advisors
the stock is acquired for the portfolio.
Overall,
the portfolio is governed by rules regarding
maximum exposure to economic sectors or specific
companies. Stocks that are acquired carry a "target
price" that supplies a future selling-price
guideline. As long as a stock is maintained in
the portfolio, it is subject to re-evaluation by
the student managers, since company conditions
may change.
Red & Blue Partners and Red & Blue
Advisors comprise a unique program that is supported
by an independent group of investors who provide
the investment capital to make this opportunity
possible. Duquesne University coordinates the program
for the students, offering them academic and professional
guidance as they experience the process of investment
management. As students complete this course and
prepare for graduation, they are better equipped
to enter the competitive and rewarding profession
of investment management.
For
more information contact:
Philip
L. Baird, Ph.D.
(412) 396-4735
bairdp@duq.edu |
Thomas
J. Nist
(412) 396-5788
nist@duq.edu |
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This is not an offer to sell securities;
an offer to sell securities only may
be made by an offering memorandum to
relationship based, sophisticated and/or
accredited investors where permitted
by law. This is not an offering memorandum.
The purpose of this brochure is for
general informational purposes. This
is not a general solicitation directly
or indirectly for a securities offering. |
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