Students meet with the professor and class twice a week in the Moore School's Trading Room. The class exposes students to decision-making in the design of a portfolio, especially with respect to asset allocation, security selection, and risk management.
Students will have access to a variety of industry programs to aid in the process including Bloomberg and CapitalIQ.
The course is limited only to students with strong backgrounds and genuine interests in investments and scientific methods. Enrollment in this course requires a special permission from the instructor. Students must complete FINA 762 (for FINA 772) or FINA 469 (for FINA 472) before enrolling in this course. Familiarities with financial statement analysis or strong quantitative skills (especially for students with business analytics concentration) are also required.
The application process takes place mid semester around the time of advisement. If you have any questions or are interested in applying, you can contact Colin Jones to learn more.
The Student-Managed Portfolio was approved in 1999 with $500,000. Unfortunately, the value of the fund soon fell to below $150,000 following the IT bubble. In 2006 the fund received additional investment and was valued at $500,000 with the funds make up being determined by individual stock selection. After up and down years, the funds advisement decided there was a need to change strategies in order to better manage risk. In 2011, the class started to collect and examine financial data, and in 2012, under the advisement of Professor Goto, the fund developed policy and determined investment strategies moving forward. In 2013, with $500,000 in the fund, the class started to implement these new strategies.
The SMP had changed from individual stock selection to a more balanced mix of stocks and ETFs. Under the new portfolio strategy, which better reflects the strategies of industry funds, the SMP has grown to over $790,000. With this current strategy in place, the SMP currently performs in the top 85 percent of managed funds, beating the S&P 500 for three years running. Through the use of the scientific method, diligent research and top university talent, the fund works to continue its successes moving forward.