The Fund comprises two portfolios: a Value Portfolio and a Growth Portfolio. Their performance is benchmarked against the S&P 500 and the Russell 1000 indices. The Fund follows a 100% equity, long-only strategy, with no exposure to fixed income or derivatives. Stocks are held in brokerage accounts, like other institutional investments. Clearly defining the legal structure of the Student-Managed Fund and establishing agreed-upon investment strategies is essential to prevent future conflicts
Investing occurs within a classroom setting where upper=level finance students assume distinct roles and responsibilities. Students are organized into groups, each focusing on a specific sector such as technology, healthcare, or financial services. Their duties include managing existing holdings and proposing new investments.
Students perform two analyses. The first is a bottom-up analysis, which involves researching an individual stock. They identify a potential company and present their findings. The analysis begins with a company overview, covering the business model, industry outlook, revenue breakdown, and key driving factors. This is followed by a detailed Excel financial analysis, examining the balance sheet, cash flow statement, and income statement. Students prepare forecasts and determine the stock’s current fair value alongside a future target price. A sensitivity analysis is included to show how changes in the weighted average cost of capital and free cash flow might impact the stock’s value. The company is also compared to its peers using ratios and metrics such as price-to-earnings, price-to-book, and dividend yield. The presentation concludes with a recommendation, such as adding the stock to the watchlist for a future buy or suggesting initiating a long position.
Following the presentation, there is a question-and-answer session where classmates and the professor can challenge the presenter. If the final recommendation is to buy, the class votes on the proposal. If two-thirds of the students agree, the investment is approved. The second type of analysis is a top-down approach, which focuses on macroeconomic trends and business cycles.
More experienced students may take on the role of portfolio managers, overseeing the Fund and determining sector allocations. They remain active during the summer break, when classes are not in session, to manage risks and close vulnerable positions, although major adjustments are uncommon.
To date, the portfolios have performed well. The Value Portfolio consistently matches or slightly outperforms the S&P 500, while the Growth Portfolio tracks the Russell 1000 over the long term despite its volatility. These sustained successes reflect the students’ skill and knowledge, especially considering that most professional investors in the real world underperform these benchmarks.
The benefits for students are significant. First, they apply their valuation skills in a real-world setting, managing actual funds and experiencing the responsibility and pressure that comes with handling other people’s money. Second, each student produces a comprehensive analyst report, providing concrete deliverables to share with potential employers. Finally, participation in the course is a strong addition to any resume, helping students jumpstart careers in equity research, investment banking, and asset management.
Student-managed portfolios are common at American universities, each with unique features. Some allow short positions or fixed income investments, others include macroeconomic analysts on their teams, and some exclude certain industries such as tobacco or alcohol. One constant remains: students gain valuable experience by participating in their university’s portfolio. Institutions also can compete through events like the GAME Forum, an annual financial conference organized by Quinnipiac students. The conference concludes with the announcement of the Global Portfolio Competition results. In 2025, students from over 130 universities attended, with most participating in the competition, which features six categories: Graduate Overall, Undergraduate Core, Undergraduate Growth, Undergraduate Value, Undergraduate Fixed Income, and Undergraduate Small Fund. Portfolios were ranked according to their Sharpe ratio for the 2024 financial year. The number of participants highlights the value and unique experience students gain from being part of an investment team.
Quinnipiac’s Student-Managed Fund offers a unique opportunity for finance students. The classes are engaging and conducted in a supportive environment, equipping participants with a competitive edge to launch their careers in finance. Introducing a similar fund for Hungarian students could be a valuable step toward gaining practical experience and expanding investment knowledge beyond theoretical concepts.
