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Student Benefits
Benefits of the Student Managed Fund to students include:
acquiring hands-on experience in finance; developing research, analytical,
writing, presentation, and teamwork skills; developing responsibility
and accountability for decisions; gaining attractiveness to employers -
particularly in prestigious finance positions; and fostering relationships
between students, faculty, and the business community. The
interdisciplinary nature of the class enables each student to make unique
and important contributions based upon their varied backgrounds.
Overall, students learn how to become better
investors.
Structure
The Student Managed Fund focuses study upon required
reading and discussion, independent monitoring of financial publications,
team presentations on selected stocks for investment, and individual projects.
Required reading and discussions provide a foundation of
financial theory and concepts. Popular books covered in the Student
Managed Fund include: Peter Lynch's One Up on Wall Street,
Robert Hagstrom's The Warren Buffet Way, John Train's The Money
Masters, Jeremy Siegel's Stocks for the Long Run, and Phillip
Fisher's Common Stocks Uncommon Profits. Technical books, such
as Jeffrey Hooke's Security Analysis on Wall Street, Martin
Fridson's Financial Statement Analysis, and Aswath Damodaran's Investment
Valuation, provide analysts' techniques for stock selection.
Individually monitored publications include: Barron's,
Business Week, Forbes, Fortune, Standard & Poor's Outlook, Value Line
Investment Survey: Selection & Opinion, and The Wall Street
Journal. Student synthesis of these publications add depth and
breadth to topics covered.
Stock proposals require oral and written
presentations. The class is split into teams of two to four students
to make the presentations. Presentations include: company background,
industry analysis, SWOT analysis (covering strengths, weaknesses,
opportunities, and threats,) financial ratio analysis (covering liquidity,
profitability, asset and debt management), stock valuation utilizing price
multiples and growth projections models, pro forma income statements,
discounted cash flow analysis, capital asset pricing model, recommended
action, and any other pertinent material.
Decisions to change the existing portfolio require a
two-thirds majority vote of the class and professor. In order to
ensure diversification, the Student Managed Fund may not hold more than
five percent of the entire value in any one security.
As a student-driven course, each student money manager is
required to do individual projects. Examples of such projects are:
this brochure, revision of the investment policy or code of ethics,
publication of a quarterly report, presentation before the Trustees
regarding the fund's investment performance, course operations manual,
class newsletter, maintenance of class web page, compiling the fund's
transaction history, and arranging for guest speakers. Course grades
are based on the quality and quantity of research performed and the
student's value-added individual projects.
Student Requirements
Students are selected for enrollment in the class based
upon the strength of their application in regard to the following criteria:
GPA, prerequisites, relevant work experience, and computer skills.
Knowledge of accounting, economics, and finance are prerequisites.
Work experience in the fields of investments, accounting, or economics is
beneficial. Student initiative is required in this class.
Interested students may apply for the Student Managed Fund in mid-spring
for the following year. Submit applications to Dr. Cooley.
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