Student investors call the shots during the semester they are in the seminar, handing off to a new crop of students when the next semester begins. The students operate under the same guidelines and policies as other University endowment managers, and they report quarterly and annually to the board of trustees investment committee. Sauer retains veto power over any class decision, but it's a power he's not had to exercise. Trading decisions must be approved by two-thirds of the class. They're well-prepared, bright and motivated.
Students even manage the investments during the summer, to a certain extent.
For five summers, Sauer has faithfully tended the portfolios, buying and selling only according to explicit student instructions. They may tell me to increase holdings in a specific sector or company if certain events occur, for example, but traditionally the summers are quiet. Typically, the need hasn't arisen to trade. In the final balance, they gave added weight to technology, communication services and health care securities, showing their confidence in the strength of those investment sectors. The continuing Flyer Growth Fund allows UD students to compare their results directly with other student investors.