Founded October 1, 2009, the Redhawk Fund provides students the opportunity to actively manage a portfolio using real money, beginning with $250,000 from the Seattle University Endowment Fund. By creating a more realistic learning environment, the Redhawk Fund helps prepare students for the responsibility and leadership need in the global community.
The Redhawk Fund will provide Seattle University students with an invaluable learning experience by allowing them to actively manage a portion of the University’s endowment.
Members of the board of the Seattle University finance department, along with members of the Fund’s mentor group will act as the Financial Advisory Board for the Redhawk Fund. The Fund will also have a faculty advisor. The Fund portfolio management team will regularly meet with the faculty advisor, communicating all activities undertaken. The faculty advisor will provide advice and assistance and will ensure that the management team adheres to the mission and policies of the Redhawk charter. The Financial Advisory Board, including the faculty advisor, will be responsible for evaluating portfolio and investment management team performance on a quarterly basis.
Student Portfolio Managers are responsible for maintaining a balanced and well-diversified portfolio. They will approve or deny new position proposals from the Redhawk Analysts. The Student Portfolio Managers will provide guidance to the Analysts in the research of current and proposed positon.
There will be a team of up to 10 research analysts. The analysts will report to specific portfolio managers. The analysts will be responsible for proposing potential investment positions to the portfolio managers. They will provide information on such variables as market conditions, economic and political climate etc.
The Redhawk Fund’s market value as Dec 2016 is $510,000. Portfolio managers target to weight 23% in IT sector, 18% in Heath Care sector, 12% in Financials sector, 17% in Consumer Staples sector, 8% in Consumer Discretionary sector, 3% in Materials sector, 13% in industrials sector, and the 6% in Energy sector.
The Redhawk Fund’s goal will be capital appreciation using the S&P 500 as the benchmark for the fund. The objective for the fund will be to generate a rate of return greater than the S&P 500. Returns will be evaluated as “good” or “bad” based on the performance of the S&P 500 in comparison to the Redhawk Fund. The portfolio will undergo a critical review as necessary by the Fund advisory board if there are extended period of underperformance.
The Redhawk Fund will be a well-diversified portfolio, largely compared of equity from large cap US companies of various sectors for diversification. It will be the duty of the investment management team to minimize the amount of risk that is being employed in the portfolio through proper diversification funds.