# Investment Management Initiative | MPSIF Opportunistic Equity Fund

MPO · Benchmark S&P 500

## Mandate

The fund seeks better than benchmark risk and return by investing in securities that provide superior total return. It invests in individual equities with catalysts for significant outperformance. This is a stock-picking strategy, comparable to the long side of a long-short equity fund.

## The approach

A cheap stock is not a reason to own it. The committee looks for two things together: a view of a business that differs from the market's, and a catalyst that will bring the market round to that view, such as an earnings release, a regulatory decision, a change in capital allocation or management, or an asset sale.

Every pitch has to say what the market currently believes, what the analyst believes instead, what the evidence is, and what event closes the gap. The work is built on primary sources: filings, transcripts, industry data, and the company's own disclosure.

## In the annual report

The annual report sets out the positions each year's committee took, the catalysts behind them, and how they performed.

[Read the annual report](/node/63856)