Sunday, January 31, 2016

AIM Class of 2016 has two more months to generate alpha in the Small Cap and International Equity Funds

January 2016 Performance of AIM Small Cap and International Equity Funds

The AIM Class of 2016 has been managing the two funds since April 2015 and after ten months have had many interesting learning experiences. With two months left to manage the AIM Small Cap and International portfolios, the students are seeking to add alpha during their tenure.

Small Cap Fund
January 2016 was a good month for the fund – generating 70 bps of alpha over the benchmark (Russell 2000 Index).

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The healthcare, utilities, information technologies and telecommunications sectors generated solid returns, while the energy and materials sectors continued to produce disappointing results.


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Since the AIM Class of 2016 has been managing the small cap fund they are 65 bps below the benchmark (-17.07% vs. -16.42%). With two more months to go, the students are hopeful that they will be able to overcome the large relative return deficit that was incurred during the summer. With each student conducting one more equity analysis this semester, they are optimistic they will be able to generate a positive alpha for the Marquette endowment.   

The AIM Class of 2016 has been managing the two funds since April 2015 and after ten months have had many interesting learning experiences. With two months left to manage the AIM Small Cap and International portfolios the students are seeking to add alpha during their tenure.

International Cap Fund
January 2016 generated -27 bps of excess return versus the benchmark (Russell Global ex US Index). The AIM International Fund was off 7.25%, while the benchmark was off -6.98%.

Click on image to enlarge

The utilities and telecommunications sectors generated solid returns, while the consumer discretionary sector was disappointing. Two automotive related holdings (Delphi and Mobileye) dropped by more than 25% during January.


Click on image to enlarge

Since the AIM Class of 2016 has been managing the international equity fund they are 177 bps below the benchmark (-15.54% vs. -13.77%). With two more months to go, the students are hopeful that they will be able to overcome the large relative return deficit that was the result of the emerging market underperformance. With each student conducting one more equity analysis this semester, they believe they will be able to generate a positive alpha for the Marquette endowment.   


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