INVESTMENT PROCESS

The Fund's portfolio holdings are divided into two tiers to form a core-satellite structure. Tier 1 holdings represent the core exposure (75-80% of AUM) with a 12 to 24-month investment horizon, benchmarked against the S&P 500 Index and individual Sector ETFs. Tier 2 holdings mainly consist of tactical short-term investments with less than a three-month investment horizon, also benchmarked against S&P 500 Index. The Red Brick Capital (SMIF) Investor Policy Statement outlines the Fund's specific return and risk objects. Investments in sector ETFs can be done to ensure the Fund is aligned with its IPS as sector teams research and create pitches for individual stocks.

​

Student Analysts in Finance 481 are divided into five sector teams and are responsible for conducting quantitative and qualitative research on potential investments within their sectors. They are also responsible for researching sector trends and following major firms and communicating their findings to the Fund. The Finance 482 Student Management Team is responsible for determining the Fund's high-level strategy, including monitoring the portfolio's sector allocation, risk tolerance, and keeping the Fund in line with the Investment Policy Statement. They also vote on investment ideas and conduct performance attribution analysis to understand Fund returns and improve future outcomes. Historical investments are consistently evaluated and decisions are made in alignment with the Fund's sector and firm-specific views.

​

Every semester Red Brick Capital hosts three rounds of stock pitches. Everyone sector team is responsibly for pitching at least one new position every round. Sells can also be pitched by the sector teams. Alumni judges ask questions and provide feedback on pitches, which is used by the Portfolio Management Team before a final vote to approve or deny a new pitch is held.