PRISM: AN UPDATE ON THE PORTFOLIO AND FUTURE OUTLOOK

Kyle Shaffer


The University of Scranton PRISM group has continued to see positive returns since the Fall 2017 update on the portfolio’s performance. Students continued to manage the portfolio over winter break and intersession so that the portfolio would not lay dormant as it has in years past. Members have met multiple times since returning to campus and have great plans for the future as PRISM continues to grow and develop.

The portfolio rose to as high as $578,890 on January 28th before the market experienced a correction, where the portfolio decreased in value to a low of $523,049 on February 8th, 2018. A market correction is a reverse movement in the market, typically a decrease of at least 10% to adjust for overvaluation. On February 8th two major US indexes, the S&P 500 and Dow Jones Industrial Average both experienced corrections from their highs in late January 2018 and PRISM followed suit. Since the correction, as of February 21st, PRISM has recovered to $541,291. PRISM has seen an increase of $23,857.90 in value since November 1st, 2017.

PRISM currently holds an average Price to Earnings (P/E) ratio of 24 and a Price to Book (P/B) ratio of 3.9. The portfolio has also increased its stake in equities from 80.5% during the last update to a current 85.1%.

This semester PRISM has set forth plans as to where they would like to see the group and portfolio go in the future. PRISM would like to move into more high growth stocks, contrary to the majority of blue chip stocks the portfolio currently holds. The portfolio’s volatility has increased to a beta of approximately 0.9 since the last update and is now only 10.3% less volatile than the S&P 500. Students within the group are looking to take on more risk while still making responsible investments that they believe will turn over profits for the University’s endowment. Leaders of PRISM have already begun to act by breaking down the portfolio to see the individual performance of each one of our holdings and distinguish between the best and worst performing assets. In addition, the PRISM group would like to stir up more debate during meetings in order to get members to establish positions on where they see the market heading. If a member believes the market will continue to rise, they are considered bullish and a bull, whereas a member who believes the market will turn down is bearish and a bear.

PRISM continues to evolve and has begun talks on the creation of a website to showcase student buy and sell pitches, holdings, performance, and other great content that students produce. PRISM met with many alumni last semester to discuss investment strategy and learn about different career opportunities. PRISM is looking to continue to connect with alumni and establish meaningful connections that will benefit the group and the individual members. Students hope to continue to learn and gain experience by managing the portfolio and debating with one another this spring before entering jobs, internships, and careers this summer.

Come check out a meeting! PRISM meets on Tuesday’s at either 7:30 or 8:15 depending on the Business Club schedule.

Leave a Reply

Your email address will not be published. Required fields are marked *