ASA The Student Managed Investment Fund
APPLIED SECURITIES ANALYSIS Investment education with real results ABOUT THE FUND The Student Managed Investment Fund is an educational ‘business’ housed in the USF Muma College of Business. The investment fund offers motivated, well-prepared students the opportunity to participate in simulated financial management strategies and decisions as well as to manage ‘real money in real time.’ The investment fund is governed by an advisory board comprised of financial services industry professionals who grill students on their pitches and evaluate student ideas. They offer feedback and help students understand how the classroom lessons play out in the industry. These business leaders share expertise and interact with students during their presentations. These seasoned corporate partners often extend internship opportunities to students, too.
WHAT OUR STUDENTS CAN DO The rigorous, two-semester Applied Securities Analysis (ASA) course, which is a signature part of the finance program, empowers students to use their finance education in a real-world application. This hands-on approach to fund management uses a real portfolio dedicated to the class and which resides within the USF Foundation. The portfolio’s stocks are all selected and monitored by ASA students. The course is divided into three parts: •
Students begin with a rapid and intense review of investment fundamentals as well as the tools, techniques, and philosophies that underlie security analysis and selection.
•
Individual and team analysis of stocks that may be undervalued and identification of stocks which offer the potential for superior investment performance.
•
Students present and defend stock selections orally and in writing to faculty and advisory board members. Students who provide a compelling and persuasive valuation have their suggested stocks purchased and added to the ASA portfolio.
USF STUDENT STOCK PICKS CONSISTENTLY OUTPERFORM THE MARKET The trailing 12-month return on the fund
beat the benchmark index by 19% while taking on 38% less risk.
$372,000 THE CURRENT VALUE OF THE
STUDENT MANAGED INVESTMENT FUND NOVEMBER 2014
MORE THAN
60 PROFESSIONALS & 40 FIRMS
REGULARLY ENGAGED IN THE PROGRAM
100%
PLACEMENT IN A JOB OR IN GRADUATE SCHOOL UPON GRADUATION
GRADUATES ARE ACCEPTING JOBS WITH SALARIES THAT ARE MORE THAN
50% HIGHER
THAN SALARIES OF OTHER USF FINANCE GRADUATES
PROGRAM FEATURES Significant community involvement ADVISORY BOARD Outside advisors to the students support the program through mentoring and participating in the stock pitch portion of the class. Their commitment provides a unique opportunity for Student Managed Invesment Fund participants to transcend the classroom and experience real-world financial education. The advisory board consists of seasoned financial professionals from the greater Tampa Bay area and beyond. USF alumni from Chicago, San Francisco, and Miami frequently travel back to USF to participate in the student pitch sessions. To reflect the real world, advisors grill students on anything from leverage to debt obligations to celebrity spokespersons. The students’ picks are relentlessly questioned and analyzed by individuals who have been in the field for years. This approach ensures that the students are prepared for any question that could be thrown at them.
STUDENT EXPECTATIONS All USF finance majors are required to take entry-level and advanced courses focusing on investments. Participants in the Student Managed Investment Fund program are required to take an additional two-semester Applied Securities Analysis course. Students are invited to apply to for this highly selective course based on their academic performance, courses taken, and faculty recommendations. A minimum GPA of 3.0 is required, as well as a letter of recommendation and B+ or higher in USF’s Principles of Investments course. Prospective students must interview and make a two-semester, 40+ hour per week commitment to the program.
STUDENT SUCCESS INVESTMENTS COURSE
STUDENT MANAGED INVESTMENT FUND ADVANCED INVESTMENTS
ADVISORY BOARD
ENGAGEMENT AND SUPPORT
ASA COURSE
THEAASSET MANAGEMENT TRACK student’s path to the program PROGRAM CURRICULUM The Applied Securities Analysis course consists of a number of course projects designed to develop the analytical skills and competencies that underlie security selection. The team-based environment allows students to accomplish something far beyond what is typically done in a classroom setting and teach them to perform at a high level in a real-world environment. Course projects include: • • • • • • • • • • • • •
Analyzing the existing Student Managed Investment Fund portfolio Identifying and explaining how to use various data sources Identifying stock market anomalies Analyzing the macro-economy Analyzing the stock market Analyzing the main industry sectors that comprise the stock market Analyzing the recent financial crisis/great recession Covering and reporting material from the financial press Writing and presenting summaries of important books relevant to the course Developing and justifying stock screening techniques Assessing the value of analyst recommendations and reports Identifying factors that can be used to identify unusually good investment opportunities Identifying and analyzing unusually good investment opportunities
The finance and investment lessons are taught by well-credentialed faculty and doctoral students who help students with their professional stock investment presentations and the written reports that include macro, industry, and firm-specific analysis and commentary. Understanding that these top students need more than just the industry knowledge to succeed, faculty who are experts in business communications and other “soft skills” help bolster these young scholars’ presentation and networking skills. Going beyond the classroom, students learn the importance of professional development and improve upon their business dining skills!
Student Managed Investment Fund • USF Muma College of Business 4202 E. Fowler Ave., BSN 3403 • Tampa, FL 33620-5500 business.usf.edu • 813-974-4281