NYU Students Cut Through the Earnings Noise
This column was written by Stockpickr member Ira Krakow.
Investment Club Watch recently profiled the Michael Price Student Investment Fund (MPSIF), a family of funds managed directly by MBA students at the New York University Stern School of Business. We caught up with the student fund managers in the middle of the current quarterly stream of corporate data known as earnings season to find out how these money-runners-in-training invest amid all the breaking news and earnings reports.
There are four funds in the MPSIF family: growth , fixed-income , value and small-cap . Here is a breakdown of the investment methodologies that each fund's manager uses and the recent stock picks they have made based on these methodologies.
Sticking to the ThesisThe growth fund. According to growth fund manager Ryan Fiftal he has a disciplined investment philosophy. Fiftal doesn't react impulsively to every late-breaking story, such as trading either before or after earnings announcements. Fiftal explains, "In the growth fund, we try to have an investment time horizon of at least two years. Given that MPSIF analysts are effectively part-time (simultaneously taking a full load of MBA classes), we are at a competitive disadvantage against full-time managers and traders. We simply cannot predict or react to news, including earnings announcements, as well as our competitors [professional fund managers]. "Therefore, we look closely at company fundamentals and try to determine who is going to outperform over the medium to long-term. Quarterly earnings are certainly important, providing a gauge of how each investment thesis is playing out. However, we rarely buy or sell based on a single quarter's earnings."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV