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Finance, Insurance & Real Estate

Baylor Student-Managed Investment Fund Distributes Money for Scholarships

March 21, 2017

For 14 consecutive years, Baylor University’s student-managed Philip M. Dorr Alumni & Friends Endowed Investment Fund has provided generous contributions to student scholarships totaling $2 million over its lifetime.

This year, $163,000 was distributed. Of that amount, $155,000 was presented to Baylor Athletics for scholarships. These funds are directed toward athletic scholarships for Baylor student-athletes who are business majors in good academic standing. In addition, an $8,000 MBA internship was funded in the Baylor Investment Office.

"We are deeply grateful for this generous gift in support of scholarships for business students who participate in Baylor's intercollegiate athletics program," vice president and director of Athletics Mack B. Rhodes, IV said. “We are fortunate to have outstanding business faculty at Baylor University, and we are thankful to the students who have wisely managed this fund for many years. Their investment aids us in our mission to develop champions in the classroom and on the field of play."

Established in 2000 with an endowment gift of $250,000 from alumnus Philip M. Dorr (BBA '80, MBA '83), the fund is managed by Baylor students in the “hands-on” Practicum in Portfolio Management course utilizing resources in the state-of-the-art Hodges Financial Markets Center, which is located at the new Paul L. Foster Campus for Business and Innovation.

Along with gifts from other alumni and friends, as well as a significant gift from Don and Ruth Buchholz, the Practicum students have increased the fund’s value to $7 million while managing the portfolio.

The fund's objective remains two-fold: 1) to provide an investment fund by which business students can learn investment management principles and techniques by managing real money and 2) to provide scholarships out of the fund's growth in the market value.

The investment policy of the Fund dictates that a long-term return should be as high as possible, within prudent limits, but at least as high as the S&P 500 (with dividends reinvested). Due to the structure of the classroom setting surrounding the Fund, an infinite time horizon is assumed with a tolerance for risk. The fund's normal or strategic asset allocation is 100 percent stocks.

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