D'Artagnan Capital Fund
Start Date
2023 2:15 PM
Location
Alter Hall Poster Session 1 - 2nd floor
Abstract
For our undergraduate research, we are discussing the student-led investment fund, known as the D’Artagnan Capital Fund (referred to as The Fund). Attached to this document is a photograph of a potential presentation board which depicts the rigorous research process that The Fund undergoes every semester with each new cohort. The Fund is a two-class finance capstone, with class one offering analyst roles for The Fund, and class two offering C-Suite and Managerial roles. The Fund manages a $5 million dollar portion of the Xavier University endowment; yes, real money managed by students. We research and invest in large cap equities through our rigorous bottom-up approach.
The Fund utilizes an active management approach, meaning that we are always buying and selling stocks based on our research. Our research process involves model building to estimate the fair value of the companies we seek to invest in. If the current price is higher than the value The Fund estimates, we do not invest. If the current price is lower than the value The Fund estimates, we may invest. The bottom-up approach allows us to focus on individual companies as opposed to a top-down approach that focuses on certain sectors of the economy.
The Fund utilizes two main models to estimate the value of a company’s stock price: they are the free cash flow to the firm model (FCFF), and the relative valuation model. The FCFF model allows our managers and analysts to estimate the future cash flows of a company to help derive a fair share price in the present day. The relative valuation model allows us to compare a given companies ratios to that of its competitors to evaluate how they compare to their competitors across several ratios.
The Fund provides students of all majors the opportunity to help grow the University’s endowment while offering real world experience by trading with real money. On top of creating models, members of The Fund also write up investment theses, laying out all the justifications behind their model decisions. The Fund has provided many students with experiences they have used as resume builders, in job interviews, and for many individuals, experience in their post graduate careers.
D'Artagnan Capital Fund
Alter Hall Poster Session 1 - 2nd floor
For our undergraduate research, we are discussing the student-led investment fund, known as the D’Artagnan Capital Fund (referred to as The Fund). Attached to this document is a photograph of a potential presentation board which depicts the rigorous research process that The Fund undergoes every semester with each new cohort. The Fund is a two-class finance capstone, with class one offering analyst roles for The Fund, and class two offering C-Suite and Managerial roles. The Fund manages a $5 million dollar portion of the Xavier University endowment; yes, real money managed by students. We research and invest in large cap equities through our rigorous bottom-up approach.
The Fund utilizes an active management approach, meaning that we are always buying and selling stocks based on our research. Our research process involves model building to estimate the fair value of the companies we seek to invest in. If the current price is higher than the value The Fund estimates, we do not invest. If the current price is lower than the value The Fund estimates, we may invest. The bottom-up approach allows us to focus on individual companies as opposed to a top-down approach that focuses on certain sectors of the economy.
The Fund utilizes two main models to estimate the value of a company’s stock price: they are the free cash flow to the firm model (FCFF), and the relative valuation model. The FCFF model allows our managers and analysts to estimate the future cash flows of a company to help derive a fair share price in the present day. The relative valuation model allows us to compare a given companies ratios to that of its competitors to evaluate how they compare to their competitors across several ratios.
The Fund provides students of all majors the opportunity to help grow the University’s endowment while offering real world experience by trading with real money. On top of creating models, members of The Fund also write up investment theses, laying out all the justifications behind their model decisions. The Fund has provided many students with experiences they have used as resume builders, in job interviews, and for many individuals, experience in their post graduate careers.
