Red & Blue Partners
Red & Blue Partners is a limited partnership investment fund organized to support student education in investment management. Qualified seniors majoring in Investment Management and meeting certain prerequisites and performance requirements are primarily responsible for managing the investments of Red & Blue Partners. These students are appointed to positions as fund managers and, with the approval of Red & Blue Advisors, the general partner of the fund, evaluate and select investment opportunities to be included in the Red & Blue portfolio.
The student investment experience is guided by specific guidelines for the fund and adheres to accepted screening techniques, sector analysis, fundamental security analysis and a structured decision process. Students enroll in a two-semester Fund Management course that utilizes the research resources of the Duquesne University Investment Center as a complement to classroom discussion. Faculty and outside investment professionals oversee the process through Red & Blue Advisors, but the investment decisions are largely in the hands of well-prepared students. A separate team of accounting students monitors the activities of the fund for compliance with investment policy, maintains accounting records for the fund and prepares financial statements and tax reports for distribution to investors.
The Red & Blue Partners fund seeks to earn a competitive return that outperforms the Russell 2000® Index. This benchmark provides students with exposure to smaller companies that have market capitalization of under $10 billion. Following value-based principles, students perform analysis to estimate the value of a firm, given forecasts for future performance and an analysis of current operating performance. This analysis is compared to the current stock price of the firm and a buy-holdsell recommendation is presented. Student teams critique the analysis and the recommendation is taken to a vote. If a majority of the students support a "buy" recommendation, following a confirmatory review by Red & Blue Advisors the stock is acquired for the portfolio.
Overall, the portfolio is governed by rules regarding maximum exposure to economic sectors or specific companies. Stocks that are acquired carry a "target price" that supplies a future selling-price guideline. As long as a stock is maintained in the portfolio, it is subject to re-evaluation by the student managers, since company conditions may change.
Red & Blue Partners and Red & Blue Advisors comprise a unique program that is supported by an independent group of investors who provide the investment capital to make this opportunity possible. Duquesne University coordinates the program for the students, offering them academic and professional guidance as they experience the process of investment management. As students complete this course and prepare for graduation, they are better equipped to enter the competitive and rewarding profession of investment management.
Note: This is not an offer to sell securities; an offer to sell securities only may be made by an offering memorandum to relationship based, sophisticated and/or accredited investors where permitted by law. This is not an offering memorandum. The purpose of this webpage is for general informational purposes. This is not a general solicitation directly or indirectly for a securities offering.