In a conversation peppered with "debt-to-asset ratios," "betas" and "numerators," four undergraduate members of the newly formed Student Managed Investment Fund (SMIF) presented the results of their portfolio's performance during its first quarter in operation to their advisory board.
The board, which includes University of Dallas professors and financial analysts, quizzed students on the past performance, liability and competitive advantage of different companies and industries in the SMIF's portfolio. A full list of advisory board members is available here.
"In the last three months, student fund managers have researched stock selections extensively and followed conservative management strategies, such as avoiding some excessively risky technology stocks," said Jenny Gu (right), a Certified Financial Analyst, assistant professor in the Satish & Yasmin Gupta College of Business and SMIF faculty advisor.
Return on equity for the SMIF's first quarter of trading as of Dec. 31, 2013 was 5.5 percent. A portion of the proceeds from the fund will go to a scholarship program for prospective and current students with a demonstrated interest in finance. The SMIF itself was made possible by a $100,000 gift in early 2013 from a donor who wishes to remain anonymous.
"Analyzing various companies creates exposure to many aspects of the business world, and that has been useful as I try to determine what I should do in my future," said SMIF member Will Chavey, BA '15. "I definitely continue to develop an interest in finance, but also in strategy, management and sales processes--all factors in helping to determine whether or not a company presents a buying opportunity."
The SMIF members are now preparing for a brief presentation to be made to the Board of Trustees at their February meeting.