Expanding Horizons
With the planned expansion into fixed income investments, the Stevens Student Managed Investment Fund (SSMIF) is poised to strengthen its investment strategy and expand the educational opportunities available to students. Thanks to a generous donation from John Rizzuto, we are able to grow both our portfolio and the number of students accepted into the program. This year, we have experienced a significant surge in applications, reflecting the growing interest and enthusiasm for this unique opportunity.
To support this expansion, we have appointed two new senior management positions and are actively recruiting a team to develop a fixed income factor model and macro strategy. Currently, we plan to begin our fixed income investments in U.S. Treasuries, with plans to expand into corporate bond issuance in the future. These strategic additions will be instrumental in enhancing our investment approach and ensuring we have the expertise to
execute our long-term vision.
Additionally, we are excited to welcome Dr. Jacopo Saccheri as a second advisor. With a Ph.D. in nuclear engineering from MIT and a specialization in quantitative factor models, Dr. Saccheri brings valuable technical expertise that will further strengthen our ability to develop advanced quantitative strategies. These key additions position SSMIF at the forefront of innovation, empowering the next generation of finance leaders.
2023-24 Achievements
Our portfolio has delivered strong returns over the past several years, with standout performance during key periods. While recent returns have moderated, our long-term track record reflects significant outperformance over the relevant 3-5 year period, as outlined in our investment policy statement. Although we have slightly underperformed in the short term, this is largely due to the benchmark being cap-weighted, where a few high- performing stocks have driven overall returns. Our performance relative to the equal-weighted S&P 500 index is even more notable, emphasizing the strength of our stock selection and portfolio management despite short-term fluctuations.
This fall, the SSMIF senior management team, particularly the fixed income division, has been focused on developing an initial investment plan. As the division grows, the team will monitor and assess associated risks to refine its approach and improve the effectiveness of future allocations. The quantitative analysts are also working on incorporating a Fixed Income Factor Model to evaluate credit risk and explore opportunities across corporate bonds with varying maturities. This strategy not only diversifies the portfolio but also enriches students' understanding of the financial markets through hands-on experience in fixed income analysis and risk management.