Student Investors Rise Above Market Woes
For the third year in a row, student investors at TCU's M.J. Neeley School of Business gained a return on their portfolio, beating out the markets and most other investors in what turned out to be a roller coaster year on "the street."
The 18 students, all participants in the Neeley School's Educational Investment Fund (EIF), returned from their long winter break this week to bank statements showing a $50,000 net asset gain on a portfolio of $1.77 million. The students, who are advised by Neeley School of Business Finance Professors Stan Block and Larry Lockwood, made a mid-year correction to escape the woes suffered by most investors, decreasing their technology stocks and increasing their cash and bond holdings.
"The students make all investment decisions and made very wise choices given the status of last year's market," said Dr. Block.
The EIF will donate six percent of its net asset value to TCU's general fund and Baylor College of Medicine's Department of Opthamology. Over the last 27 years, the fund has distributed $1.75 million in profits to both of these entities. Other money will be reinvested this semester by a new group of student managers.
The fund, one of the first student-led investment funds established at a university, started in 1973 with a $600,000 donation. More than 500 TCU students have managed the fund's money, growing it to today's current total of approximately $1.8 million.
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