Investment Objectives

T he Cougar Fund is a private investment fund that holds equity securities that are traded in the US markets.  The Fund is considered a multi-cap core investment vehicle. The Cougar Fund's objective is to supply investors with superior risk-adjusted returns through a managed portfolio of investments in stocks that have both value and growth characteristics.  The Fund's student managers attempt to add value to the portfolio by investing in undervalued stocks discovered through in-depth fundamental analysis of the business, financial, and market characteristics of individual firms.  Each stock considered for the portfolio is required to undergo a thorough due diligence examination of its investment merits based on appropriate implementation of free cash flow valuation procedures. The Portfolio is managed with a long-term perspective with the expectation that its stocks will be held for a number of years. Thus, portfolio turnover is expected to be low. 

The student managers of the Fund closely monitor risk and seek to maintain a risk level comparable to the Fund's benchmark, the S&P 500 Index.  The portfolio is not managed based on sector rotation considerations.  Instead, the student managers seek to eliminate sector risk by employing sector diversification through approximating benchmark weightings.  The portfolio does not use derivatives.