Investment Strategy | Become an Investor

The SWS Investment Fund focuses on investing in the equities market, as a way to teach the fundamentals of investment analysis to members. Members focus on researching companies by analyzing financial statements, understanding the industry and trends, and discussing the company with senior management and those in the investment community. By analyzing the fundamentals of the company, SWS aims to provide members with the basic skills to develop an investment thesis on a variety of companies. The fund currently operates with a long-only strategy and seeks to invest in companies that are undervalued in the market relative to their peers. SWS members are encouraged to seek out these companies by using their expertise in the industry, coupled with current trends, future growth, and the competitive landscape to determine if a company warrants future analysis. If so, SWS members work to explore the company further, diving into fundamental research of the companies’ operating, financing, and investing activities in order to determine if the company is in fact undervalued relative to other companies in the industry.

After the fall education program, SWS members are placed into 1-2 industry teams for the remainder of their time in SWS. In specific industry teams, SWS members work independently or in small groups to research companies within their sector. Next, SWS members discuss their findings with their industry team, coming to an investment recommendation to be presented to the Executive Board. During the formal presentation, SWS members present their investment thesis and recommendation, recommending risks and rewards of the potential investment. The Executive Board can question the research, hypothesis, and implications of the investment.  The Board will eventually make a final recommendation to buy if the stock meets the value criteria outlined by the investment strategy of the fund.