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Student-Managed Investment Fund Contributes $210,000 To Scholarships

Jan. 22, 2007

For the fourth straight year, the Baylor University Athletic Department will receive a generous financial contribution from the Philip M. Dorr Alumni & Friends Endowed Investment Fund. After being presented with gifts from the fund totaling $450,000 over the past three years, a $210,000 donation from the fund will be given to the department during halftime of Saturday's men's basketball game at the Ferrell Center between Baylor and Texas Tech.

"We are grateful for the generous contribution from the Philip M. Dorr Alumni & Friends Endowed Investment Fund and its support of student-athlete scholarships," said Baylor Director of Athletics Ian McCaw.

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 Scott 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 in excess of $6.7 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.

Since the Fund's inception in 2001, the student-managed portfolio has beaten its benchmark, the S&P 500, on average by about 2.0% per year. Likewise, it has created over 20% more wealth than its benchmark. This outperformance has also been accomplished with lower risk (as measured by beta and standard deviation) than the S&P 500.

"The new Southwest Securities Financial Markets Center, coupled with the Philip M. Dorr Alumni & Friends Endowed Investment Fund engages students in active learning," said Terry Maness, Dean of the Hankamer School of Business. "At the same time, it allows us to help support our business student athletes and MBA students."

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