The Monticello Fund’s philosophy begins with the premise that superior returns over time can best be achieved through investment in undervalued companies with superior and sustainable growth prospects while integrating macroeconomic and local market factors into stock selection decisions. As a result, the Fund will consist of a blend of companies domiciled around the globe. By employing a bottom-up approach with intensive research focused on company fundamentals and macroeconomic and local market factors, the Fund’s managers are able to identify undervalued, financially strong, and well-managed domestic and international companies in a global sector context. Further, the managers each strive to continuously educate ourselves with regards to investment analysis and portfolio management theory.
Buy decisions are based on a rigorous research process that pays special attention to relative valuation on a local market and broad sector basis, profitability, management strength and competitive advantage while taking into consideration both global market and business risk. As a result, the Fund will be comprised of approximately 20-40 individual equity holdings with differing market capitalizations from a variety of countries and sectors.
Both buy and sell decisions will require a majority vote by the Fund’s managers.
Stocks become candidates for sale if 1) they fail to meet milestones, 2) they reach pre-determined price targets, 3) their fundamentals deteriorate, or 4) changing fundamentals undermine the original investment premise. Price targets are set based on specific company and industry analysis, and the Fund managers will update their analysis when a price target is reached to determine whether or not to sell the stock. Appreciated long positions that exceed 10% of portfolio value will be scaled back, while short positions that exceed 6% of the total portfolio value will be scaled back.
Long stocks that decline by 15% in value will be subject to a full re-analysis. Any stock (long or short) that has a negative impact of greater than 1% on the total portfolio will be subject to a review by the CIO and faculty advisor. All shorts will be strictly reevaluated at a 10% loss. Stop loss orders will be used to limit the maximum loss of any one short position to 15% of the value of the position. The goal of this intensive review process for underperforming investments is to promote a well-rounded, challenging discussion of all the issues in a timely and urgent manner.
Portfolio Manager Bios
Alex Fraser, CFA – Senior Portfolio Manager
Alex Fraser is the Senior PM on the Monticello Fund. Prior to coming to Darden, he worked in equity manager research at Cambridge Associates. Alex graduated cum laude from Sewanee: The University of the South with a BA in Economics, and he is a CFA charterholder. Alex will spend the summer as a global equity research intern at PIMCO.
Stoya Maglova – Portfolio Manager
Ms. Stoya Maglova went to the American University in Bulgaria, where she studied Business Administration with a concentration in Accounting. Prior to Darden, Ms. Maglova spent two years working in the consulting industry in New York on projects with private companies in a number of different industries. She will be joining MetLife for the summer where she will be interning under the Leadership Development Program.
Jake Womble – Portfolio Manager
Following graduation from the United States Naval Academy with an engineering degree, Jake spent 7 years in the Marine Corps. During his service time as an Infantry Officer he deployed twice to the Middle East before working as an acquisitions Project Officer at Marine Corps Systems Command. He and his wife Jenn have two children, daughter Payton and son Caleb. At Darden, Jake is an active member of the Darden Christian Fellowship, the Darden Military Association, and Darden Capital Management. He will be spending his summer internship working as a commercial banker with M&T Bank in Annapolis, MD.
Jake Yeager – Portfolio Manager
Prior to Darden, Jake managed projects for the Commonwealth of Pennsylvania's Office of Mental Health and Substance Abuse Services for two years. Prior to that, he traded equities for his own account. Jake graduated from Temple University in 2006 with a B.A. in Economics and a minor in Russian. After his first year at Darden, Jake spent the summer apprenticing with Ed Seykota, a pioneer in computerized trading.