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Article
Publication date: 8 February 2022

Tim Carpenter

In 2004, Roanoke College began offering a Student-Managed Fund course, wherein students were able to manage a portfolio of equity and fixed income using real money. While not a…

Abstract

Purpose

In 2004, Roanoke College began offering a Student-Managed Fund course, wherein students were able to manage a portfolio of equity and fixed income using real money. While not a widely adopted concept at the time, it has since become quite common in finance programs, either through courses or clubs. In February 2019, the author supplemented activities in the course with the addition of real cryptoassets for students to manage. The paper discusses the design, implementation, and pedagogical advantages of the fund.

Design/methodology/approach

The paper expands on the existing literature regarding student-managed investment funds (SMIFs or SMFs) by presenting a case study on the implementation of a student-managed cryptoasset fund at Roanoke College.

Findings

The value of experiential learning through student-managed funds (SMFs) is well established. Thus, these programs have become much more common in recent years and are now often expanding to securities beyond equities and bonds. The introduction of cryptoassets to be traded by students at Roanoke College is another step in improving students' exposure to various markets and appears to further improve research and critical thinking skills.

Originality/value

This is certainly one of the first, and to the author's knowledge may be the only, real money cryptoasset fund managed by students.

Details

Managerial Finance, vol. 48 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 5 September 2018

J. Christopher Hughen and Peter P. Lung

Student-managed investment funds typically pursue “plain vanilla” objectives. The purpose of this paper is to demonstrate the value of adding option strategies to reduce the risk…

Abstract

Purpose

Student-managed investment funds typically pursue “plain vanilla” objectives. The purpose of this paper is to demonstrate the value of adding option strategies to reduce the risk of equity positions around earnings announcements. The collar strategy is one such technique with the advantages of a low net cost and limited potential losses.

Design/methodology/approach

The authors provide recommendations for utilizing the collar strategy around earnings announcements. The authors also discuss how the value of this strategy is related to the literature on option pricing and earnings announcement returns.

Findings

Risk management strategies can enhance the pedagogical value of student-managed investment funds. The authors document how students have successfully utilized the collar strategy to immunize risk.

Originality/value

The collar strategy can enhance the pedagogical value of student-managed investment classes in several ways. First, students learn how to implement risk reduction strategies. Second, the proper implementation of these strategies requires students to learn the complex mechanisms associated with corporate earnings dissemination and analyst coverage. This also provides an opportunity to study earnings drift, which is a persistent and economically significant financial anomaly.

Details

Managerial Finance, vol. 46 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 13 March 2019

Thomas S. Howe, Vladimir Kotomin, Min-Yu (Stella) Liao and Abhishek Varma

The purpose of this paper is to document and compare the characteristics of two student-managed investment funds at the University.

Abstract

Purpose

The purpose of this paper is to document and compare the characteristics of two student-managed investment funds at the University.

Design/methodology/approach

This study uses a case study approach to achieve this purpose.

Findings

Consistent with other studies, this study finds considerable differences in funding, oversight and the structure of the courses in which the students manage the portfolios. This is the case even though the portfolios are managed by students in courses offered by the same department at the same university.

Originality/value

This study presents different possible ways of obtaining funds and structuring courses in which the students manage investment portfolios.

Details

Managerial Finance, vol. 46 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 13 June 2023

Lawrence J. Belcher and Landon J. Belcher

The “experience is the best teacher” model assumes that acquiring expertise in a given domain reduces biases. Research in expert knowledge in investment decisions has shown better…

Abstract

Purpose

The “experience is the best teacher” model assumes that acquiring expertise in a given domain reduces biases. Research in expert knowledge in investment decisions has shown better ability to produce improved results in asset selection or portfolio returns. Universities created student-managed investment funds (SMIFs) to train students in portfolio management as fiduciaries. However, analyses of the effectiveness of the SMIF as a medium for expert knowledge transfer have not been done.

Design/methodology/approach

The authors’ analyze an SMIF's structure against established models of expert knowledge transfer, using the voting patterns of the trustees of the fund from the recorded minutes of the fund's meetings to show the fund's structure and outcomes demonstrate effective knowledge transfer. Voter consensus between faculty and student trustees is one proxy the authors use for knowledge transfer.

Findings

Consensus between faculty and students was uniformly high across all recommendations. Chi-square tests were employed to test for independence between approval of recommendation and level of consensus, showing dependence in most cases. Analysis of sale returns over the 12-year sample period showed significantly better performance of asset sales over relevant benchmarks for both equity and fixed income portfolios.

Originality/value

Most analyses of SMIF structure concentrate on well-known issues with things like student turnover, summers or other structural issues. Performance is evaluated based on returns. This study looks at the SMIF as an expert knowledge transfer medium and examines expert/novice decision approval in terms of knowledge transfer.

Details

Managerial Finance, vol. 49 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 18 June 2019

Asli Ascioglu and Kevin John Maloney

The purpose of this paper is to trace the evolution of the Archway Investment Fund (AIF) at Bryant University from its founding in 2005 as a portfolio focused exclusively on US…

Abstract

Purpose

The purpose of this paper is to trace the evolution of the Archway Investment Fund (AIF) at Bryant University from its founding in 2005 as a portfolio focused exclusively on US equities to a multi-asset program that incorporates US equities, non-US equities, equity ETFs, REITs, individual bonds, fixed income ETFs and options. It also describes the explicit introduction of environmental, social and governance (ESG) considerations into the investment process.

Design/methodology/approach

The paper follows a case study approach.

Findings

The paper describes the programmatic changes that accompanied this evolution in these areas: finance department curriculum innovations; the investment guidelines and constraints that govern the AIF; the investment process utilized; the oversight and governance process; and the reporting, presentation, and publicity initiatives that keep critical constituencies (university administration, faculty, alumni and students) informed and engaged in this program to sustain its success.

Originality/value

The vast majority of student-managed funds are equity funds focused on individual stock selection. The AIF is a multi-asset fund with separate equity and fixed income sub-portfolios that explicitly incorporates ESG factors into the security selection process.

Details

Managerial Finance, vol. 46 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

Open Access
Article
Publication date: 27 September 2019

Chinmoy Ghosh, Paul Gilson and Michel Rakotomavo

The purpose of this paper is to present a review of the student managed investment fund at the School of Business, University of Connecticut.

2312

Abstract

Purpose

The purpose of this paper is to present a review of the student managed investment fund at the School of Business, University of Connecticut.

Design/methodology/approach

The authors trace the history and growth of the fund and identify the special features and dimensions that have contributed to its success.

Findings

The operation of the fund is a constantly evolving program and the authors discuss the important changes and improvements made in the program since its inception in the early 2000s in response to growth in the number of finance majors, new career opportunities in the field of investments and most importantly, the strength of capital markets and the development of new instruments in the capital markets. The authors also discuss the common features of over 300 student funds in the USA. The authors close with a discussion of the limitations and constraints the fund advisors at, and possibly, at other schools, face in the management and administration of the fund, and also what developments and adjustments the authors expect to see in these funds in the future.

Originality/value

The authors combine extensive analyses of fund history and performance. The authors also provide some suggestions for the future direction and priorities for student funds.

Details

Managerial Finance, vol. 46 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 23 June 2022

Alphil Maria Joseph, Jerrin Jose and Anusha Srinivasan Iyer

This paper aims to explore how the student fund managers perceive the benefits of being part of the fund. Furthermore, this paper examines the country-specific challenges of…

Abstract

Purpose

This paper aims to explore how the student fund managers perceive the benefits of being part of the fund. Furthermore, this paper examines the country-specific challenges of setting up and managing a student-managed investment fund (SMIF) in India.

Design/methodology/approach

Qualitative content analysis technique is used to identify, compare and retrieve critical themes about the present state of SMIF clubs in India. The data collection method involved structured, in-depth online interviews with ten student fund managers from various higher educational institutions in India.

Findings

Some of the study’s key findings indicate that the existence of SMIFs as part of learning facilitates group decision-making and peer learning. Additionally, this study brings to light specific issues related to registration, incorporating real-world practices and integrating SMIF into the academic curriculum.

Social implications

The outcomes of this study shall be of use to students and the teaching fraternity across Indian colleges and universities who aspire to set up SMIFs as part of experiential learning. This study will also help existing SMIF clubs in India understand how their counterparts work and can consequently improvise their organizational structure and functioning.

Originality/value

To the best of the authors’ knowledge, this is the first interview-based evaluation of the present structure of SMIFs structured as clubs in India.

Details

Journal of International Education in Business, vol. 16 no. 1
Type: Research Article
ISSN: 2046-469X

Keywords

Article
Publication date: 8 June 2021

Kobana Abukari, Erin Oldford and Neal Willcott

In recent years, student-managed investment funds (SMIFs), experiential learning programs at an increasing number of universities, have attracted significant scholarly interest…

Abstract

Purpose

In recent years, student-managed investment funds (SMIFs), experiential learning programs at an increasing number of universities, have attracted significant scholarly interest. In this article, we review the academic literature on this pedagogy.

Design/methodology/approach

We use the systematic review method to assess a sample of 85 articles published in 30 journals during the period 1975 to 2020.

Findings

Our literature review reveals four streams of research: best practices and challenges, investment management, innovation and trends and SMIFs in a research setting. We also propose future research directions, including specific gaps in the literature, a focus on innovations to traditional programs, systematic investment performance and expansion into behavioral finance issues.

Originality/value

We contribute a comprehensive view of the body of scholarship on SMIFs, identifying existing streams of research and future research directions that will help guide the development of SMIF research into a cohesive and productive space.

Details

Managerial Finance, vol. 47 no. 11
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 23 November 2021

Crystal Yan Lin

The purpose of this paper is to investigate the embedded challenges of student-managed investment funds (SMIFs) and provide recommendations to work with these issues.

Abstract

Purpose

The purpose of this paper is to investigate the embedded challenges of student-managed investment funds (SMIFs) and provide recommendations to work with these issues.

Design/methodology/approach

The paper analyzes and critiques the ways SMIFs are structured and operated and makes several suggestions.

Findings

The paper details seven unique challenges of SMIFs compared to professionally managed investment funds. The source of these challenges is that SMIFs are set up for educational purposes, which makes the operation and management different from performance-focused investment funds. The paper proposes several recommendations on how to align the educational focus with fund performance.

Originality/value

The paper is original and based on primary research.

Details

Managerial Finance, vol. 48 no. 2
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 29 May 2019

Mahmoud Mustafa Haddad, Arnold L. Redman and Nell S. Gullett

The Tennessee Valley Authority (TVA) provided funds to 25 universities in its service region for the establishment of student-managed investment funds (SMIF). The purpose of this…

Abstract

Purpose

The Tennessee Valley Authority (TVA) provided funds to 25 universities in its service region for the establishment of student-managed investment funds (SMIF). The purpose of this paper is to examine the TVA Investment Challenge Program and its implementation at The University of Tennessee at Martin (UTM).

Design/methodology/approach

Each university has the freedom to structure the process for students to manage its investment fund as it chooses. This paper provides a description of the overall Investment Challenge Program and the specific Program at UTM.

Findings

The Investment Challenge Program is a valuable experiential learning opportunity for finance majors at UTM. Participating students enhance their portfolio management knowledge, their written and oral communication skills, and their employment opportunities.

Research limitations/implications

The paper is limited to TVA Portfolio guidelines and managerial style.

Practical implications

Faculty who supervise similar programs at other universities may be able to replicate some aspects of the program’s design.

Originality/value

The paper describes the TVA Investment Challenge, a unique program of SMIF. TVA provided funds to 25 universities with the stipulation that the student managers adhere to the same guidelines as TVA’s professional money managers. The university is a participant in the Program.

Details

Managerial Finance, vol. 46 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

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