Above: Redhawk Fund Team meeting via Zoom
Seattle University’s Redhawk Fund was founded in October 2009 with the goal to provide students with an opportunity to actively manage a portfolio using real money. The Fund started with $250,000 from the university’s endowment, and has grown to over $850,000 since. The Redhawk Fund is a platform for Albers students to participate in professional portfolio management and equity research, thus preparing them for success in the global community.
The Redhawk Fund’s main purpose is to provide a learning opportunity to its members. We aim to follow ethical practices to maximize our portfolio’s return while managing risk with proper diversification. We invest in Fossil Free assets.
The Redhawk Fund’s operations are overseen by our faculty advisor, Cathy Cao, as well as by members of the Department of Finance Advisory Board. We also have the guidance of our Student Advisory Board which is comprised of experienced Albers students. We regularly communicate our activities and progress with our faculty advisor. The faculty advisor along with the Board ensure that the management team adheres to the mission and policies of the Redhawk charter. The faculty advisor also routinely evaluates the portfolio management team’s performance.
Student Portfolio Managers are responsible for maintaining a balanced and well-diversified portfolio. They provide guidance and direction to research analysts and make decisions related to asset allocation and Fund operations. Portfolio Managers also facilitate communication with the faculty advisor and Board, and ensure the timely execution of new trades. We have between 3 and 5 analysts in any given term.
We have a team of 5-20 research analysts in any given term. The analysts report to specific portfolio managers and are responsible for proposing potential investment positions to the team. Analysts provide information on such variables as market conditions, economic and political climate etc. Once an analyst performs a valuation and presents their recommendation to the team, they must receive a majority vote from the team to proceed with the trade.
The Redhawk Fund’s market value as of January 2021 has passed the $1 million mark. Our current target allocation is:
The Redhawk Fund’s goal is capital appreciation using the S&P 500 Fossil Fuel Free Reserves Index as the benchmark. The objective for the fund is to generate a rate of return greater than the benchmark. The portfolio will undergo a critical review as necessary by the Fund advisory board if there are extended periods of underperformance.
The Redhawk Fund is a well-diversified portfolio, largely comprised of equities from large-cap US companies. It is the duty of the investment management team to minimize the amount of risk that is being employed in the portfolio through proper diversification.