The Cayuga Fund
The Cayuga Fund manages money for the Cornell University endowment and is distinguished from other university-based funds by the combination of these three factors:
The Cayuga Fund manages money for the Cornell University endowment and is distinguished from other university-based funds by the combination of these three factors:
- The structured performance-learning environment in which students take a class, Applied Portfolio Management, in order to participate in the management of the fund. They apply theoretical frameworks to managing equities and receive continual expert feedback from faculty and professionals in the field.
- The unusual degree of decision-making responsibility entrusted to the student fund managers, under appropriate oversight by faculty and investment professionals
- The access to electronic data feeds and analytical software valued at several million in annual licensing fees
How the fund operates
The Cayuga Fund class (Applied Portfolio Management) is the capstone class in asset management for students interested in pursuing investment management careers. Both undergraduate and graduate students are eligible to participate.
The Cayuga Fund is a student-managed fund with assets under management of approximately $1.5 million in Cornell University endowment money. MBA students interested in becoming Portfolio Managers for the Cayuga Fund and participating in the associated course, NBA 5120 – Applied Portfolio Management, are selected in the spring semester of their first year in a competitive process based on academic preparation and achievement, strong analytical skills, and demonstrated interest in pursuing investment management careers. Students are also encouraged to participate in the management of the Cayuga Fund in their first year by trying out to be first-year sector analysts for the fund and receive course credit for doing so (NBA 5250 – Cayuga Fund MBA First Year Sector Analyst program). Undergraduate students interested in taking the Cayuga Fund class should take NBA 4120 – Equity Investments and Analysis (offered every spring) as a prerequisite.
The selected students enroll in the Applied Portfolio Management class (NBA 5120/5121 for MBAs and NBA 5121 for undergraduates), taught by Professor Scott Stewart. Each student participates in one of seven teams that cover key economic sectors in the S&P 500. Based on rigorous research, they prepare and present proposed investment ideas to the class as a whole. Student course grades are based on their formal reports, presentations, and class participation, as well as portfolio performance relative to the sector benchmark.
Faculty Advisors and outside Investment Advisors (professional portfolio managers or research analysts, many of whom are Johnson alumni) work with students, providing resources and ongoing expert feedback in the investment process. Investment Advisors may be invited to attend formal class presentations in person or via Zoom. Student Portfolio Managers prepare a formal annual report on the performance of the fund, which they present at the end of the academic year.
In addition to the Cayuga Fund course, Johnson offers several other courses tailored to meet the needs of future investment professionals. Interested students are encouraged to make an appointment to see any member of the Parker Center faculty and staff to learn more.