Full-time MBA students and undergraduates manage the Student Investment Fund (SIF) as members of the college’s Security Analysis class (FI457/FI857). Under the instruction of Stephen Schiestel and using the tools of the Financial Analysis Laboratory, the students master the essentials of portfolio management, stock selection and stock performance evaluation. They continuously monitor the fund and ensure that its stated security selection discipline is maintained.
The Student Investment Fund was created in April 2003 as a sub-account of the MSU Foundation’s portfolio. The Foundation initially funded the SIF with $750,000 and has made additional contributions since. These allocations, together with the returns achieved by the students, have grown the fund to a present value of approximately $5 million.
The investment strategies and decisions of the class are reviewed each semester by the Finance Advisory Board. During the board’s meetings, students present their analysis of the performance of the total portfolio and their buy and sell recommendations on individual stock holdings. Students gain experience in responding to the board’s rapid-fire questioning about the fund’s composition, current returns and future earnings outlook.