ASAM - Overview

Purpose of Fund
The Anderson Student Asset Management (ASAM or the Fund) is an investment fund that aims to:

  • Provide a competitive rate of risk-adjusted return to its investors
  • Enhance the educational and professional opportunities of MBA students from the UCLA Anderson School of Management through experiential learning.

A portion of the long-term profits of the fund will be donated to the UCLA Anderson School of Management for support in student scholarships and for support of research in finance.

Investment Philosophy
The objective of ASAM is the preservation of capital and the pursuit of favorable risk-adjusted returns. The student managers will work as a team to adhere to the stated investment policies and within these limits to strive for superior long-term performance to the extent feasible and prudent.

The Fund seeks to achieve its objectives through a diversified portfolio of securities that meet the fundamental and technical specifications adopted by its managers. The Fund's managers believe that, in a dynamic market, security prices sometimes violate sensible risk/return boundaries. The fund seeks to identify and exploit these opportunities through large-sample quantitative techniques and detailed fundamental analysis of specific companies. Fund managers will leverage the research and analytical capabilities provided by the UCLA finance faculty. Particular emphasis will be given to investment strategies that have demonstrated their validity in academic research.

The student-managers along with their advisor and oversight committee will determine an optimal mix of equity, fixed income, and cash investments. Subject to minimum liquidity requirements, the fund may hold the stock of any publicly traded US firm on an approved list of stocks selected in consultation with the faculty advisor. To avoid systematic risk from individual securities, the managers will establish maximum position limits. The fund will also be prudently diversified to avoid the undue risk inherent in concentrations in any single economic sector, industry group, or individual security. Each year, the student-managers in consultation with the oversight committee will select a benchmark for the fund that reflects the asset allocation decision.