Investment Strategy

Portfolio Strategy

The University of Maine’s Student Portfolio Investment Fund prioritizes a small to mid-cap, value & equity-based strategy. We target stocks that are underpriced compared to their fundamentals and competitors. Price ratios, pricing models, and relative comparative analysis with competitors are used to facilitate purchases.

Portfolio Allocation Goals

  • 80% Equities
  • 10% Fixed Income
  • 10% Cash & Cash Equivalents

Portfolio Maintenance Protocols

  1. Individual securities should not be larger than 5% of the entire market value of the portfolio.
  2. No sector should be worth more than 20% of total stock market value.
  3. No sector should be worth less than 5% of total stock market value.

Flagged Stock Protocols

  • Underperformers are stocks whose returns for the period are 10 percentage points lower than the average return in its sector.
  • Overperformers are stocks whose returns for the period are 20 percentage points higher than the average return in its sector.