Magazine article University Business

The Real Deal: Finance Students Get in the Trenches to Learn Portfolio Management. (Update)

Magazine article University Business

The Real Deal: Finance Students Get in the Trenches to Learn Portfolio Management. (Update)

Article excerpt

The University of Dayton's Center for Portfolio Management simulates a Wall Street investment firm, complete with a stock ticker board, televisions tuned to CNN and CNBC, and two Bloomberg News terminals providing securities information. But the money students invest is the real thing.

Fifteen finance students have been entrusted with $2 million of the university's endowment to invest. And they are not alone. Approximately 120 colleges and universities now give their students real money to invest, a phenomenon that's taken off in the past five years.

"More and more colleges are recognizing the value of training future portfolio managers by actually having them manage a portfolio," says Larry Belcher, chairman of the finance department and director of the George Investments Institute at Stetson University in Florida.

"A lot of schools run simulated portfolios or use stock-picking games, but the real test is in functioning exactly as a professional money manager would. This means doing research, making recommendations to some sort of investment committee, and living with the results, even if they are painful. Real-money portfolios are growing because they offer an unparalleled experience for investment students. …

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