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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