About SIM

SIM Portfolio Methodology

Goals

• To provide students with a unique and valuable learning experience
• To preserve and maintain the real purchasing power of the principal value of the SIM portfolio while still allowing for periodic distributions of income
• To maintain a "well-diversified" portfolio and earn a total return in excess of our market benchmark, the S&P 500 Index

Class Structure

Approximately 35 students partake in the class each semester. The class is offered to a mixture of undergraduate and graduate students each semester.

During the class, each student acts as a security analyst as follows:

Each student is assigned one stock from the existing SIM portfolio; he/she is responsible for the detailed monitoring of that stock throughout the semester.

The class is further divided into market sector groups, which are responsible for researching and analyzing that specific market sector; periodic reports are delivered to the class outlining overall trends, recent developments and specific stock recommendations.

The student analysts give updates during each class meeting on the current events and activities affecting their firm. The analyst interprets these events and activities in order to make recommendations to the class regarding the holding.

The analyst prepares a written report and makes an oral presentation to the class with his/her group.

During each class session, the professor holds discussions including topics such as portfolio management, capital market theories and specific analytical techniques. Further discussions are then held based on the students' stock and industry reports and how they relate to recent and future portfolio performance.

To add to continuity, each group submits their presentations briefing the reasons for specific buys/sells during the semester to be passed on to the next SIM class. The presentations are available on this website.

Restrictions

• Stocks must have a market capitalization of $1 billion or greater
• Common stock holding in any single company shall not exceed 5% of the SIM portfolio market value