A Wall Street Experience: Students Manage Investment Fund

The real world of investing came to UMass Amherst undergraduates in January, 2008 with the establishment of the student-managed $25,000 Minuteman Equity Fund.  Like all good investors, students developed investment strategies, researched, and analyzed markets – and bought stocks in eight different companies.

Candice Lo ’09, lead financial sector analyst and head of fund development, says working on the fund is unique. “I see our hard work paying off personally and professionally. I have opportunities to apply classroom theories to the real world and working with successful alumni who can open career doors.”

The Fund operates under the auspices of the Student Investment Club, a registered student organization, involving some 75 students from finance majors to engineers.  The club started with a $25,000 donation from the University of Massachusetts Foundation.

After the students began investing, they soon realized the limitations of having a modest amount of money to invest and embarked on an ambitious goal of raising $75,000 by the end of the spring 2009 semester. Several alumni, some of whom serve on the fund’s advisory board, have contributed., doubling the fund’s size to $50,000. Primarily a learning tool, any profits will be reinvested into the fund. Once the fund hits $200,000, any new gains will be used for UMass student scholarships.

Ben Branch, professor of finance and adviser to the club, explains that a larger fund will allow the students to diversify investments as well as have more flexibility in making investment decisions. Mila Getmansky Sherman, a finance professor and the second faculty adviser, notes that gifts can be used to build up the fund, or buy specialized trading or financial software, brokerage reports, or other items. “The important thing is they are learning,” says Branch.

The students are also mindful of leaving a legacy. “To leave a mark on the campus is something that far exceeds getting a 4.0, being on dean’s list or graduating summa cum laude.  I’ll take that any day,” notes Michael Harper ’09, chairman of the fund.

Give to UMass Amherst and give more students the chance to succeed in the classroom and beyond.