About Us

History

The Cal State East Bay Student Investment Fund was established in May 2022 through the generous contributions of $277,000 from alumni Ken Pereira, Mike Coke, and Michael Dance. In 2024, renowned investor Louie Navellier pledged $20,000 per year to help cover the fund’s operating expenses, ensuring that more of the portfolio’s growth can directly support student learning and scholarships.
 
The Student Investment Fund was founded with a dual mission:
  • Empower students by providing hands-on investment experience, developing real-world skills, and bridging academic learning with practical decision-making.
  • Promote a culture of giving back by supporting future generations of students — with 5% of the fund’s net assets awarded annually as student scholarships.
SIF Board

Advisory Board Members

Mr. Mike Coke- President and CEO of Terreno Realty; donor
Dr. Eric Fricke- Professor of Finance
Dr. Scott Fung- Professor of Finance
Dr. Sinan Goktan- Professor of Finance
Dr. Tina Lang- Assistant Professor of Accounting
Mr. Louie Navellier- Chairman and Founder of Navellier & Associates; donor
Mr. Ken Pereira- Retired CFO of SteelRiver Infrastructure Partners; donor
Dr. Kourosh Shafi- Associate Professor of Management

Investment Policy

Objective
The Student Investment Fund provides students with practical experience in investment research, portfolio construction, and disciplined financial decision-making. The Fund seeks long-term capital appreciation through a diversified equity portfolio while adhering to the investment parameters outlined below.

Investment Guidelines

  • Investments are limited to U.S.-based companies whose common stocks trade on major U.S. exchanges. Emphasis on companies based in California and the Bay Area.
  • Companies must have a minimum market capitalization of $1 billion, with a preference for large-cap firms.
  • No individual holding may exceed 5% of total portfolio value at the time of purchase.

Investment Strategy
The fund employs a rigorous systematic bottom-up strategy focusing on company fundamentals in the following key metrics:
  • Firm size: market capitalization
  • Valuation: free cash flow, free cash flow growth rates, book value, book value growth rates
  • Financial stability: dividends, stock buybacks
  • Efficiency: return on asset, margin
  • Solvency: total debt, debt issued
  • Growth: revenue growth rates 

Each firm receives a z-score based rating within their respective sectors for each factor. This standardization allows for fair comparison across diverse industries. A company’s composite score is determined by the weighted average of its individual factor scores. Weights vary based on sector, market capitalization, and growth vs. value orientation.

Diversification Strategy
The Fund maintains diversification across sectors, industries, and geographies to optimize the risk–return profile. Candidate selections progress through a three-tier diversification process:

  1. Industry Classification: Companies are grouped by sector and sub-sector to ensure broad industry exposure and reduce concentration risk.
  2. Correlation Analysis: Historical price correlations (1-year and 3-year) between candidates and existing holdings are analyzed to minimize overlapping exposures.
  3. Geographic Diversification: Preference is given to firms with a meaningful share of revenue generated outside the United States, providing natural diversification and global growth potential.

Qualitative Analysis
Following quantitative screening, student analysts perform in-depth qualitative research on shortlisted companies, focusing on:
  • Competitive Advantage: Durable moats such as brand strength, intellectual property, or network effects.
  • Management Quality: Leadership track record, capital allocation discipline, and alignment with shareholder interests.
  • ESG Considerations: Environmental, social, and governance factors relevant to long-term sustainability.
  • Risk Assessment: Evaluation of macroeconomic, geopolitical, and industry-specific risks. 

Recommendation and Approval Process
  • Analyst Reports: Student analysts produce a detailed research report summarizing both the quantitative evaluation and qualitative insights.
  • Pitching: Analysts present their findings and stock recommendations to the SIF Advisory Board, comprised of faculty and industry professionals.
  • Approval Requirement: Investment recommendations require a majority vote (50% + 1) by the Advisory Board before being implemented in the portfolio.