Investm

ent
analysis

Case study

Group members:
Muhammad Sufyan sarwar

l1f13bbam0432

Syed zohaib shamsi

l1f13bbam2026

Syed firyad ali shah

l1f13bbam2022

Amaar Hussain
Usama
Topic; investment recommendations to Darden school

Should Darden invest with UVUMCO?

In my opinion, Darden should invest with UNIVERSITY OF VIRGINIA INVESTMENT MANAGEMENT
COMPANY because of our following recommendations.
1. The university of Virginia investment management company is a foundation that is dealing with huge funds
which had raise the 1.4 trillion assets during 11 years and is growing on more profit.

2. UVIMCO is 20th rank in return. In 2003, it gives the return second highest than HARVARD; which is at top
in the endowment value universities; and recent this investment company gave return more than 15% that
shows the positive signal of improvement and high return generation.
3. The university of Virginia endowment is $3.6 billion and over the 20 years, UVIMCO is earning more than
13% return on endownment which shows that it is trustworthy company that have ability to provide more
earing in next years as UVIMCO has return in top 10% of universities endownment.
4. Another plus point of UVIMCO is that although it is 20th in rank but it constantly gives good profit every year
on all its investing return that shows it is string foundation and have ability to compete with top endownment
universities.
5. In fact, top 5% of universities have value of $201 billion about 59% of total endownment that is $340 billion
and university UVIMCO has return at top 10% of universities that show company is on growth and will soon
meet in top 5% universities.
6. The university of Virginia management company have mean market value 444,551. Company have high
average asset allocation during year 2006 than recent in fund assets (hedge funds, private equity, real estate
and other asset). Also if we look at endownment size (> $1 billion) return by endownment size on average
percentage is high in 10 years that is 11.4%.
7. If we look at IMICOs portfolio policy statement, it underlines that risk tolerance is important determinant for
long term investment and they set conservative objective to minimize the risk while targeting long term
maximize return which support that investment managers will invest in multiple asset classes and fund
structure (include, hedge fund, private equity, real estate) which meant lowering risk with high return.
UVIMCO also consider the setting asset allocation targets e.g if we look at position summery and
performance summery, their made portfolio is very close to target with very minute differences like public
equity have portfolio 25.4% and target is 25.0% mean difference is 0.4%.

Conclusion:
From above mentioned reasons, we are all of the view that Darden school should invest with
UVIMVCO because UVIMCO is a huge emerging firm and is competing with 20 top world universities, the
merging with this firm will give benefit and profit in long run and short run both too.