Skip Ribbon Commands
Skip to main content

Fund Objective

The primary objective of the Goizueta Investment Management is to earn a return in excess of its benchmark, which is a combination of the S&P 500 Index and a cash amount similar to that held by the portfolio, while incurring a comparable amount of risk. The Fund attempts to achieve this objective by making long-only investments in equity securities across various industries and sectors. While the Fund will invest predominantly in the equity securities of domestic companies, it will also consider investments in foreign company American Depository Receipts traded on major US stock exchanges. The Fund seeks to outperform the benchmark through the active management of a focused portfolio of both growth and value-oriented stocks selected after rigorous fundamental or technical analysis.

Fund Philosophy

The Goizueta Investment Management seeks growth of capital by investing in a focused portfolio of companies with reasonable or below market valuations relative to our expectations of future growth and earnings. Given the core mandate of the Fund, this philosophy is further refined into both a value and a growth discipline. The value discipline of the Goizueta Equity Fund seeks quality companies that are trading at a significant discount to their intrinsic value. The growth discipline seeks companies of reasonable valuation who have a demonstrated history of growth with the potential for continued above average growth.

The Fund’s two major asset classes are equities and cash. The equity portion of the Fund will consist of investments in long equity positions, while the cash component of the Fund will continue to be reduced over time as these funds are invested in long equity positions. The Fund will be managed as an ongoing entity, and therefore investment positions taken in the Fund will be with a longer term view, defined as greater than one year.

While the criteria for investment differ in accordance with the above growth and value philosophies, the investment process for selecting either type of holding is identical. The investment universe is screened using asset class, market capitalization, industry sector, and specific fundamental criterion for potential growth or value holdings. The universe is further reduced to companies acceptable given the risk management guidelines detailed below. Rigorous fundamental or technical analysis is applied to potential holdings to ascertain a specific target valuation, outlook for that company, and investment thesis or catalyst.

Risk Management

The Fund utilizes a focused, disciplined approach to maximize risk control. As a result of the two-year rolling engagement of the investment professionals, risk management is an essential part of the management process.

As with any equity investment fund, the Goizueta Equity Fund is subject to considerable volatility, which may result in sub-par or negative returns. While the Fund will strive to mitigate risk by holding a diversified portfolio, certain risks are out of the Fund’s control and include, but are not limited to, market risk, adverse macroeconomic events, and security-specific risk.