Investment Portfolio Case Competition Overview

February 7, 2025 Event organized by:

• Cornell’s Parker Center for Investment Research
• Johnson Investment Management Club
• Cornell Financial Engineering Manhattan (CFEM)

2025 Case Topic: Defensive Equity Fund

For the 2025 Investment Portfolio Case Competition, teams will evaluate a fictional investment firm whose employees have developed a successful 401(k) business that offers clients target-date retirement funds. These retirement products feature a diversified mix of stocks and bonds, with the allocation becoming more conservative over time according to a predetermined asset allocation plan. Funds with longer time horizons are heavily invested in the equity markets, yet managers do not adjust allocations to protect against potential market downturns. For example, the strategy for one provider’s “2070” fund is to remain 90% invested in stocks for the next 20 years. Shareholders may be disappointed if their account values drop sharply, putting investment managers’ businesses at risk if clients are not provided with at least one feature to safeguard against significant losses.