How NYU MBA Students Learn to Run Real Money

Performance

The performance of each sub-fund is judged against a specific industry-standard benchmark (see index ) for the fund's investment style:

• The growth fund's benchmark is the Russell 1000 Growth Index (IWF - Cramer's Take - Stockpickr). Current top holdings: Apple (AAPL - Cramer's Take - Stockpickr) and Transocean (RIG - Cramer's Take - Stockpickr).
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• The value fund's benchmark is the Russell 1000 Value Index (IWD - Cramer's Take - Stockpickr). Current top holdings: Illinois Tool Works (ITW - Cramer's Take - Stockpickr) and Bank of America (BAC - Cramer's Take - Stockpickr).
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• The small cap fund's benchmark is the Russell 2000 Small Cap Index (RUT - Cramer's Take - Stockpickr). Current top holdings: Trimble Navigation (TRMB - Cramer's Take - Stockpickr) and Washington Group International (WNG - Cramer's Take - Stockpickr).
• The fixed income fund's benchmark is the Vanguard Total Bond Index (VBMX - Cramer's Take - Stockpickr).

Unique Challenges

The story of MPSIF's investment in Aircastle (AYR - Cramer's Take - Stockpickr), an aircraft leasing company, reveals some of the challenges of managing a school-based fund.

Here's how Louis Kay, one of the growth equity fund managers, describes what can happen during the summer:

"AYR was originally purchased at $34.71 at the end of April 2007. We stopped out of the stock at $30.00 on August 6. Like the rest of the market, the stock price was hurt by the overall [negative] market sentiment. Since school was not in session on August 6, it was difficult to get the portfolio managers together to evaluate whether or not to stay in the stock."