Student-Managed Fund Sees Success in First Four Months

Financial Analysis Program

By Sage Curtis Posted Wed, 04/22/2015 - 17:00

Ludwig Chincarini

The University of San Francisco Student-Managed Fund was created in 2013 to give students the opportunity to manage $1 million in financial markets.

The fund has seen success with net gains of $32,660.58 in the first four months. Profits from managing this fund, if any, support the School of Management in a number of ways, bridging the gap between financial theory and real-world application.

USF School of Management Finance professor Ludwig Chincarini reported net gains have put the fund up 1.03% for the year. The investment team of 11 students and Dr. Chincarini used the collaborative nature of the course and each team member’s individual skill set to make decisions on how to best allocate the $1 million fund.

Julianna Iran, MBA ’15, the team’s International Economist, said the course widened her perspective on the global market.

Each week I had to give the team a presentation on the global economy,” Iran said. “I had to read everything thoroughly: from the potential Grexit to Japan's two-decade-long deflationary spiral. This experience gave me a deeper understanding of the interconnectedness of international markets.

Iran said studying how other countries approach economics gave her a global perspective on how changing economic and political policies in individual countries affect the world economy as a whole. “I recently wrote an article on female empowerment for my firm's quarterly newsletter. I used Japan's economic woes as an example for why women should be encouraged to pursue successful careers,” Iran said. “Even after monetary and fiscal policy implementations, many people believe it is the Prime Minister's new structural tactics coined "Womenomics," that will improve the country’s GDP.”

The team’s Quantitative and Performance Analyst, Odontuya Natsagdorj MSFA ‘15, believes that the SMF is teaching her skills that will be invaluable to her future career. She said the opportunity to get the hands-on experience working with programs used by industry professionals, like Bloomberg and Matlab, added immense value to the course. “We were able to program a portion of the financial program for the fund (using Bloomberg and Matlab),” she said. “The opportunity to actually pool financial data in order to analyze it will help me in implementing any investment analysis I perform in the future.”

The collaborative nature of the course allows students to gain experience in the financial field while learning from professors and peers, Natsagdorj said. “Just hearing teammate presentations, insights and comments on news led to fascinating debates about a number of different investments,” she said. “The overall experience of being in the room with other people who are processing financial news and data was a very useful experience for me.”