The objective of the Jefferson Fund is to maximize investment returns, while at the same time minimize systematic risk. Diversification is not only achieved at the sector/industry level, but also through asset allocation. As part of Darden Capital Management, the Fund’s other objective is to provide students with an opportunity to enhance their understanding of security valuation and portfolio valuation techniques, with the expectation of furthering their pursuit of careers in the asset management industry.
The Jefferson Fund seeks to generate excess returns through a value-based strategy, whereby out of favor or undervalued investment opportunities are identified primarily through a bottom-up process. We believe that this style of investment, which emphasizes the importance of a company’s valuation and invests only in those companies which are believed to be trading at a discount to their intrinsic value, will lead to consistent long-term outperformance. Furthermore, by concentrating on companies with market capitalizations of $200 million to $5 billion and with little analyst coverage, which we believe to be less efficient, the Fund is positioned to capture above average investment returns. From time to time, the managers may identify and invest in undervalued companies with larger capitalizations. At any given time, the Fund will hold between 20-25 positions. Individual holdings will be limited to a maximum of 6% at time of investment.
According to the Fund’s mandate, it will hold at all times a minimum of 20% invested in a combination of cash and fixed income instruments. The managers expect to invest the fixed income portion of the portfolio primarily in U.S. Government securities. From time to time, the Fund may invest opportunistically in corporate bonds. The managers intend to minimize the cash allocation.
The Fund will be managed against a blended benchmark comprised of 80% Russell 1000 Index and 20% Lehman Brothers 7-10 Year Treasury Index.
The Jefferson Fund seeks out of favor or undervalued investment opportunities. At any one time, we intend to hold between 20-25 equity positions.
The managers will have no industry bias and will invest opportunistically in any and all sectors.
The Fund will purchase companies with a minimum market capitalization of $100 million, with no maximum capitalization. Because of the managers’ bias towards undervalued companies and out of favor industries, the managers expect to concentrate on companies with market capitalizations of $100 million to $5 billion that have lower analyst coverage. From time to time, the managers may identify and invest in undervalued companies with larger capitalization.
Managers intend to minimize the cash allocation.
Portfolio Manager Bios
Scott Meadows, CFA – Senior Portfolio Manager
Scott graduated from the University of Virginia School of Engineering and Applied Science in 2008 with a Bachelor of Science in Systems Engineering, after which he joined Capital One as a financial analyst in the firm's Global Finance Rotation Program. Over the next three years, he held roles in Corporate Planning, Line-of-Business Finance, and Treasury Management. In 2011, Scott joined the Corporate Development team and over the course of the next two years, worked on several corporate transactions including mergers, acquisitions, divestitures, and other corporate financial and strategic initiatives before returning to Charlottesville to attend Darden. In the summer between first and second year at Darden, Scott worked in Goldman Sachs' Investment Banking Division as part of the Financial Institutions Group in New York City.
Doug Bobrow – Portfolio Manager
Doug graduated summa cum laude from Bucknell University in 2009 with Bachelor of Arts degrees in both Economics and Biology. After graduation, Doug joined Deloitte Consulting's Human Capital practice. He held advisory roles in strategic communication, organizational design, and training implementation, focused on large-scale systems integration projects for large state government clients. In these roles, Doug worked alongside state officials to improve the management and oversight of state welfare benefits, workers' compensation claims and abuse/neglect incidents. In the summer between first and second year at Darden, Doug worked in JP Morgan's Private Banking Division in New York City and Philadelphia.
Josefa Palma - Portfolio Manager
Josefa graduated from Lehigh University with a B.S. in Finance and a minor in Spanish in 2010. After graduating, Josefa spent three years working at Bank of America Merrill Lynch in the Fixed Income Capital Markets Group within the Investment Banking Division, where she developed fixed income strategies and assisted in the origination and execution of fixed income securities for Fortune 500 companies. Josefa specialized in Media & Telecom for during her first two years and Healthcare for her third year, raising nearly $100bn in bonds across 56 different transactions. Josefa will be spending her summer at Credit Suisse in the Financial Sponsors Group.
Randy Sinclair – Portfolio Manager
After graduating from the United States Coast Guard Academy in 2007 with a B.S. in Management, Randy spent 6 years in the U.S. Coast Guard as a Law Enforcement Officer. While in the Coast Guard, Randy deployed three times with the U.S. Coast Guard Cutter JARVIS to the Bering Sea, and several times with the Maritime Security Response Team for high-level national security events. As a team leader, Randy specialized in developing training programs, managing divisional and departmental budgets, and executing a wide array of Coast Guard missions. At Darden, Randy is an active member of the Darden Military Association, Darden Capital Management, and Darden Photography Club. He will be spending his summer internship working as an Investment Banker with Citigroup in New York City.