In 2015, the Satish & Yasmin Gupta College of Business received a $75,000 gift from an anonymous donor to seed an investment fund managed by graduate finance students, launching the Student Managed Investment Fund (SMIF).
The mission of the SMIF is to enhance student academic pursuits in the study of finance and investing by offering real-life exposure and participation in investment analysis and portfolio management. The SMIF is managed by students working toward a Master of Science (MS) in finance who make independent investment decisions. A portion of the returns supports a scholarship program for students interested in finance.
“The Student Managed Investment Fund provides invaluable hands-on experience for students, allowing them to apply classroom knowledge to real-world investing,” said Associate Professor of Finance Jenny Gu, PhD. “Managing the fund not only enhances practical skills in financial analysis and decision-making but also gives students a significant edge when pursuing professional certifications like the CFA or CFP by providing them with real-world investment experience that is highly relevant to these credentials.”
As it’s nearing the ten-year mark since its launch, Gu shared a few stats on the SMIF. The current total balance of the fund as of Aug. 31 is $208,099, a 177.47% return on investment from the original start-up capital of $75,000. This outpaces the Benchmark Index Blend S&P 500 return on investment at 157.03% for the same period.
The SMIF portfolio is primarily composed of domestic equities with exposure to different sectors, maintaining a well-diversified approach. It has a stronger focus on growth stocks and the portfolio includes the “Magnificent Seven” stocks: Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta Platforms and Tesla, which performed notably well in recent years.
The SMIF has achieved notable success over the past ten years. In 2015, the SMIF was a top five finalist in the Chartered Financial Analyst (CFA) Portfolio Management Competition. In both 2017 and 2020, the SMIF was a finalist in the CFA Southwest Investment Research Challenge.
The greatest success the SMIF has provided UDallas, however, is the career advantage to finance graduates. Many participants have secured roles and internships at major finance firms, achieved CFA scholarships and passed CFA exams. These students gained valuable experience managing and investing in a fund or were provided monetary assistance from the fund through scholarships.
Eli Cervera, MS ’24, reflected on his SMIF experience.
“[It] set us up very well for the real world. I found that since this experience had real consequences and real money behind our research and analyses, it made us feel more involved and gain real world experience in investing as Dr. Gu taught us and guided us through our weekly presentations,” Cervera said. “I found that the most rewarding part was seeing the real gains made by our analyses and trades, which also motivated us further and made me believe and trust in myself more.”
