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Student-Managed Investment Fund Provides Scholarships for Ninth Consecutive Year

March 6, 2012

Dorr 2012-02

For the ninth consecutive year, the Philip M. Dorr Alumni & Friends Endowed Investment Fund has provided a generous financial contribution to Baylor University's Athletic Department. An $80,000 contribution will be presented to the Athletic Department at halftime of Saturday's Baylor-Oklahoma men's basketball game at the Ferrell Center.

The Fund, which continues to rank as one of the nation's largest managed by students, has provided more than $1.3 million in support of scholarships for Baylor's 19-sport intercollegiate athletics program since its first gift to the department in 2004.

"We are grateful for the generous contribution from the Philip M. Dorr Alumni & Friends Endowed Investment Fund and its continued support of student-athlete scholarships," Baylor's Director of Athletics Ian McCaw said "We are especially proud of Baylor's business student-athletes who are receiving an outstanding education while they compete in the sport that they love, as well as the great faculty in the Hankamer School of Business who have played an important role in the Fund's sustained growth over the last decade."

Established in 2001 with an endowment gift of $250,000 from alumnus Philip M. Dorr (BBA '80, MBA '83), the live equity portfolio is actively managed by select Baylor business students through a course led by Professors Brian Bruce and Brandon Troegle. The student analysts learn through first-hand experience the amount of research and analysis that goes into stock selection. They used a combination of Value Line, First Call, Bloomberg and other financial websites to research earnings surprises, forward growth drivers and other pertinent information. The course operates from Baylor's Hankamer School of Business' state-of-the-art on-campus Southwest Securities Financial Markets Center.

Through additional gifts and investments raised by Dean Terry Maness from alumni and friends, the Fund opened with a total of $400,000 and has grown to a current market value of $4.8 million. Distributions from the fund are directed toward athletic scholarships for Baylor student-athletes who are business majors in good academic standing and to MBA students with an interest in investment management.

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 growth in the market value of the Fund. Contributions provided from the Fund now total more than $1.3 million and include gifts of $75,000 in 2004, $175,000 in 2005, $200,000 in 2006, $210,000 in both 2007 and 2008, $130,000 in both 2009 and 2010, $100,000 in 2011 and this year's gift of $80,000.

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% stocks.

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