The 2015 Washburn University Applied Portfolio Management Class: From left to right: Travis Hirt, Arek Kozaczuk, Dr. Weigand, Brandon Holle, Mark Latimer, Bryan Lunzmann, Jia Liu, Dakota McMahon, Chris Carson, Alexander Anguiano, Sam Olberding, Brea Schmidt (BBA 2013), Harshad Phadke and Bobby Florence (BBA 2014).
The Student Investment Fund has slightly outpaced the S&P 500 over the past 5 years:
The Spring 2015 class correctly anticipated the economic slowdown (negative GDP growth in Q1 2015) and repositioned the portfolio more defensively, with active sector overweights in Healthcare and Consumer Staples. The overweight in Energy stocks is also defensive in this case, as the SIF Energy holdings are concentrated in low-beta, high dividend yield master limited partnership stocks such as Kinder Morgan and ONEOK.
The following table shows the dividend yield of the SIF by stock sector. The SIF active stock selections had higher yields in all sectors except for materials stocks. The SIF’s weighted dividend yield of 3.04% was 1.29% higher than it would have been if the portfolio was invested in all SPDR ETFs.
The following table shows the SIF beta by stock sector. The SIF active stock selections had lower betas than the corresponding ETFs in Energy, Telecom, Consumer Staples, Industrial and Information Technology stocks. Overall the SIF had a beta of 0.850. Had the portfolio instead held all ETFs with similar sector weightings, the SIF’s beta would have been 0.948.
The table below shows the SIF’s current positions and the weight of each position in the SIF portfolio. The fund’s market value was $138,712 as of June 10, 2015.
The table below shows the SIF’s weighted average P/E ratio, dividend yield, free cash flow yield, return on assets, return on invested capital and operating margin. Most fundamental portfolio characteristics are within acceptable limits. The average portfolio P/E ratio of 18.2 is slightly elevated, but indicative of a late-stage bull market where valuations are high across the board.
-- Datasource: Standard & Poor’s Capital IQ