Faculty
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Pedro Matos, James A. and Stacy Cooper Bicentennial Professor of Business Administration, John G. Macfarlane Family Chair and Academic Director of Richard A. Mayo Center for Asset Management |
Course Description
The Darden Capital Management (DCM) course aims at preparing students in equity research, stock selection and portfolio management in a real-world environment, in which students manage funds on behalf of the Darden School Foundation (“DSF”). Students are responsible for generating investment ideas, perform thorough research on them, pitch to a group of managers, and vote on their potential inclusion in the portfolio. Students are also responsible for regularly reporting of portfolio results to the DSF Trustees and the Faculty Advisor(s) through comprehensive presentations. The course is intended for students who want to pursue careers in asset management, equity/credit research, hedge funds, and investment consulting. Students enrolled in the course receive a total of 4.5 credits. Currently, there are 6 funds (Cavalier, Colonnade, Darden, Jefferson, Monticello, and Rotunda), which range in investment orientations from long/short, real estate focused, small-cap, to growth at reasonable price, global and to sustainability. In addition to the six teams, there are also four executive positions (CEO, CIO, CFO, CRO).
The Colonnade Fund is a long-only equity fund investing in the best performing Real Estate Investment Trusts (REITs). The fund utilizes a bottom-up research approach with a strong emphasis on funds from operations (FFO) and dividend payouts to identify attractive investment opportunities. The Fund will seek to invest in single name positions in equity REITs, mortgage REITs, and infrastructure securities. In terms of allocation, the fund will strive to hold 65% of the portfolio in domestic REITs and the remaining 35% in real estate adjacent securities. Over the medium to long term, the fund will seek to outperform the FTSE Nareit US Real Estate Index.
Course Objectives
- Prepare students to perform equity research in a real-world environment which allows them to pitch stock ideas to a group of colleagues, debate on the merit of the idea, and vote on the potential inclusion of the stock to a real fund.
- Test students ability to set target prices for stocks, follow specific investments, and perform ongoing due diligence.
- Help students understand how to manage investment portfolios, allocate capital, and manage risk.
- Increase student understanding of factors affecting equity and bond valuation.