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Student-Run Investment Fund Distributes Money for Scholarships

March 29, 2018

By Dresden Hale

For 17 consecutive years, Baylor University’s student-managed Philip M. Dorr Alumni & Friends Endowed Investment Fund has provided generous contributions to student scholarships totaling over $2 million over its lifetime. This year, the Fund contributed $184,000 in support of student-athlete scholarships.

Furthermore, for the 2017-2018 academic year this Fund provided a total of $365,000 with the additional funds going to pay faculty salaries, pay for data and software, and to fund a student internship with the Baylor Investment Office. The Practicum students have increased the fund’s value to about $8.2 million in 17 years of managing the portfolio.

Based on a very generous donation from Baylor alumnus Philip M. Dorr, a unique financial investment project was created in 2001, which allows Baylor business students to receive first-hand investment fund management experience. Students utilizing resources in the state-of-the-art Hodges Financial Markets Center manage the Fund. Annual distributions from the Fund go toward athletic scholarships, faculty salaries, data and software, and an investment internship.

“It started as a way to create opportunities for students to learn about the business world. It was also a way to honor my late parents, Melvin and Margaret Dorr, who taught me the value of giving back and helping others. The goal is to give students real life experience and a better chance at getting jobs on Wall Street or within the investment community,” said Dorr.

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.

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