Baylor Business School's Student-Managed Investment Fund Makes Fifth Gift Toward Student-Athlete ScholarshipsFeb. 21, 2008
For the fifth consecutive year, the Baylor University Athletics Department has received a generous financial contribution from the Philip M. Dorr Alumni & Friends Endowed Investment Fund. This year's $210,000 gift was presented prior to last Saturday's Baylor-Texas men's basketball game at the Ferrell Center.
"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," said Baylor Director of Athletics Ian McCaw.
More than $900,000 has been returned to the athletic department over the last five years through the fund's performance, which is managed by Baylor Business students. The investment fund ranks as one of the nation's largest student-managed portfolios and has a current market value of about $6.5 million.
"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."
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. 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 25% 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.