INVEST M ENT M A NA GEM ENT A CA D EM Y
Fall Fund Performance Report | Spring 2025 To support its operations and enhance its effectiveness, IMA is structured around several specialized committees. The Macro Committee provides weekly insights on economic trends, including inflation, interest rates, and market sentiment, offering essential context for portfolio positioning. The Quant Committee delivers data-driven performance analyses and explores quantitative approaches to identify opportunities and enhance decision-making. There are also the Operations, Recruitment, Social, Professionalism, and Education Committees which all play a pivotal role in the function of the organization.
Organization Overview The Investment Management Academy (IMA) is a student-led organization focused on managing a $1.5 million long-only small-cap equity portfolio with the objective of outperforming the S&P 600. The fund targets undervalued companies within the benchmark index, aiming to capitalize on their potential to generate outsized returns over a 24-month horizon. Maintaining a fully invested strategy, the portfolio typically holds 20 stocks, with minimal cash reserves for liquidity and no use of margin. This approach mirrors the sector composition of the S&P 600 while emphasizing strategic stock selection.
Executive Summary
IMA’s investment process is built on rigorous fundamental research and collaborative decision-making. Analysts work in pairs within sector-specific groups to screen for potential investments, conduct comprehensive financial analysis, and build detailed three-statement models to support their recommendations. Each group is overseen by a Portfolio Manager (PM) who provides mentorship, sector expertise, and feedback throughout the selection process. Recommendations are vetted through a team review and class voting process to ensure alignment with the fund’s goals. Teams continuously monitor portfolio performance and industry trends, adhering to a structured schedule set by IMA leadership to maintain a disciplined investment approach.
The Investment Management Academy endured a challenging but opportunity-rich environment during the Fall 2024 semester, which was characterized by strong economic growth, easing but persistent inflation, and shifting interest rate expectations. The S&P 600 benchmark recorded gains of 19.2% for the year, reflecting strong performance across various sectors. Meanwhile, small-cap equities saw periods of volatility, with growth stocks outperforming value stocks due to the ongoing excitement surrounding artificial intelligence and broader economic resilience.
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