Hankamer's Student-Managed Investment Fund Gives $200,000 to Athletics for Financial AidJan. 6, 2006
For the third straight year, the Baylor University Athletic Department will receive a generous financial contribution from the Philip M. Dorr Alumni & Friends Investment Fund. After being presented with gifts from the fund totaling $250,000 over the past two years, a $200,000 donation from the fund will be given to the department during halftime of Saturday's women's basketball game at the Ferrell Center between No. 4 Baylor and No. 23 Texas.
"We are excited about the continued growth of the Phil Dorr and Friends Investment Fund and its significant support of student-athlete scholarships," said Baylor Director of Athletics Ian McCaw. "The investment fund remains highly successful and is a credit to Hankamer School of Business Dean, Dr. Terry Maness, Professors Bill Reichenstein, JT Rose and Scott Pittman and the funds from many generous benefactors."
Established in 2001 with a $250,000 endowment gift from alumnus Philip M. Dorr, the real equity portfolio is actively managed by select Baylor Business students through a course led by Professors Pittman and Brian Bruce and operating from the state-of-the-art on-campus Southwest Securities Financial Markets Center. One of the nation's largest student-managed portfolios, the investment fund has a current market value of $6.5 million. Distributions from the fund are directed to athletic scholarships for Baylor student-athletes who are business majors in good academic standing and to MBA students with an interest in investment management.
"These disbursements are possible because of the extraordinary competence with which Business students have managed this money," said Maness. "The fund not only allows them to get hands-on experience managing a portfolio, but also enables them to give back to their fellow students in this way."
The student-managed portfolio returned 12.5 percent for calendar year 2005 while the S&P 500 returned 3 percent over that same time frame. The portfolio outperformed its benchmark by 950 basis points with lower risk (beta and standard deviation) than the S&P 500.