Baylor Student-Managed Investment Fund Provides Contributions For ScholarshipsMarch 2, 2016
For the 13th consecutive year, Baylor University’s student-managed Philip M. Dorr Alumni & Friends Endowed Investment Fund has provided a generous financial contribution for student scholarships. A check in the amount of $180,000 was presented to Baylor Athletics at halftime of the Feb. 29 fourth-ranked Baylor women’s basketball game vs. Texas.
"We are truly grateful for the generous contribution from the investment fund in support of student-athlete scholarships," said Baylor's Vice President and Director of Athletics Ian McCaw. "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 exceptional faculty in the Hankamer School of Business who have played an important role in the fund's sustained growth since its inception 15 years ago.”
Established in 2001 with an endowment gift of $250,000 from alumnus Philip M. Dorr (B.B.A. '80, M.B.A. '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. Annual distributions from the fund go toward athletic scholarships and an investment internship for an MBA student.
Along with a significant gift from Don and Ruth Buchholz, the Practicum students have increased the fund’s value to $7 million in 15 years of managing the portfolio. With this year’s generous contribution, the Dorr Fund has distributed a total of $1,835,000 million in support of student-athlete scholarships at Baylor University. Distributions from the fund are directed toward athletic scholarships for Baylor student-athletes who are business majors in good academic standing and to M.B.A. 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 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.