The Student Management Investment Fund (SIMF) is composed of a select group of high-achieving senior students who manage a $100,000 domestically and internationally invested portfolio.
CAFE Student Investment Management Fund
Utilizing an innovative seminar setting, the Center for Advanced Financial Education deviates from the more traditional classroom setting in order to promote a more efficient flow of information.
Housing FNCE 450 – Portfolio Management
The CAFE provides state-of-the-art facilities, allowing students to invest and manage $100,000 of donated/endowed funds through the Student Investment Management Fund (SIMF).
The SIMF creates a dynamic, real-money experience that is invaluable to the students as they step into the world of finance. Utilizing the latest technology employed in the finance sector, the CAFE provides students with an opportunity to gain actual experience in portfolio management. Students learn the control for the inherent uncertainty of stock selection through proper analysis, and the time and effort required to manage a successful portfolio. Asset allocation, diversification, portfolio management and fundamental and technical analysis are just some of the skills that the students develop in this class.
The portfolio team for the Student Investment Management Fund performs all of their own research, calculations and data analysis. The student managers use investment tools and news outlets such as Security Dealings Systems, Bloomberg, the Wall Street Journal, Value Line Investment Survey and various other sources to compile information. Once the required information is collected the student managers then calculate their own fundamental data, i.e. Beta, P/E ratio, Return on Equity Ratio, Debt to Equity Ratio, Holding Period Yield and more, as well as constructing correlation and covariance matrices.
A major differentiation between the Mario J. Gabelli School of Business Student Investment Management Fund and those of several schools is that the subsequent classes of student managers do not inherit the prior portfolio. This practice is necessary for students to learn the entire process of portfolio management – from the initial construction phase to the monitoring and evaluation phase.
Finance 450: Portfolio Management
Students of Roger Williams University have a unique opportunity to invest real-money using the latest analytical tools. Today, there are several institutions of higher learning which give business students the opportunity to invest “real dollars.” But, in most cases these “student funds” are typically managed through investment clubs or in a classroom setting on the graduate level. If students are introduced to such an opportunity on the undergraduate level, it is typically in a supplemental fashion, coinciding with what is taught in such a class as Investments – ignoring many aspects of the investment process. Lastly, it is important to note that almost all of Roger Williams University’s peer schools do not offer this opportunity in the capacity of this innovative course.
Students enrolled in portfolio management take on the responsibilities of financial analysts from day one. Incorporating much of what they have learned in prior corporate finance courses, capital market courses, and investment courses they are seemingly prepared to construct a portfolio from scratch. Besides the typical quantitative lessons such as fundamental analysis, students also address qualitative issues in order to understand the psychology of investing and hence gain a better understanding of investor sentiment.
Portfolio management is taught to a class of ten students in the Center for Advanced Financial Education within a seminar setting, allowing students to actively participate in lectures as well a share ideas and analysis techniques.