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