The MAJAH Fund Managed by Mitchell Brennan, Josiah Burden, Hayden Bright, Andrew Borgen, and Alina Patel The Task Our team was tasked with creating and managing a portfolio of stocks over the time frame of five days. To start, we were given a million dollars, and access to the various tools across the internet. Additionally, our team was in competition with the S&P 500 index fund, as well as other teams. Our Mission Our mission is to grow our money at a moderately aggressive rate (around 8% per year), while protecting it from extreme volatility, using a unique blend of passively managed positions and actively managed positions. Initial Strategy Our first plan was to start the week by buying a few stocks which we thought had potential to go up in the next few days, and then sell as needed throughout the week. To start, we began researching current events in the business/finance space and elsewhere. Positions of the First Strategy 1) 2) 3) Bought Pfizer (NYSE: PFE) because alternatives to abortions will become more widespread. Pfizer offers these products. Bought Walmart (NYSE: WMT) because there was a event the following day where suppliers and Walmart discussed what products to shelf for the upcoming year. This could drive the price up. Bought Dollar General (NYSE: DG) because it was on an uptrend, and there was bullish momentum. Results of the First Strategy The strategy of simply buying and holding stocks did not work, as the market was on a downtrend. We ended with around a thirteen thousand dollar loss. The First Transition After losing around thirteen thousand dollars in companies we had bought, we decided something had to change. The new plan was to short sell various stocks, as the market was heading downward. Positions of the Second Strategy We decided to short Kezar Life Sciences, Inc (NYSE: KZR) because we saw that it was overbought after recent news of a positive study. Also, we shorted Nike Inc (NYSE: NKE) after net income decreased last quarter. Finally, we used technical analysis to inform a series of shorts on the Lockheed Martin Corporation (NYSE: LMT). Chart of Lockheed Martin Corporation (NYSE: LMT) A resistance line, which is shown by the top purple line and a support line, which is shown by the bottom purple line. Final Results Portfolio Allocation The Future of the Portfolio Since actively managing the portfolio on the basis of technical analysis and current events worked well, we will implement this in our fund’s strategy; as mentioned earlier, our main goal is to grow our fund at a moderately aggressive rate. However, while doing this, we want to make sure that the money invested is as safe as possible, so we will be putting the majority of the fund into index funds, REITs, and bonds. Citations Slide 6: Scott, Gordon. “Downtrend.” Investopedia, Dotdash Meredith, https://www.investopedia.com/thmb/1fLUOVJaooM0geI4R9naZkntc74 =/1500x1125/filters:fill(auto,1)/GettyImages-173234122-773a2f2f44 1d4d1aba6863f012960bd5.jpg.
