Fund posts overall growth of 23.8 percent

The Nance College of Business’s two-year old Viking Student Managed Investment Fund (SMIF), managed by CSU finance students, won first place in the category of growth strategy among graduate level teams at the national Redefining Investment Strategy Education (RISE) conference, held in late March at the University of Dayton.

Katie Honarvar, Sangram Pradhan, Rahul Sukheja, and Asmaae Benmerzouga

RISE is the largest student investment education conference in the world. More than 2000 students attended the event and SMIF teams from over 200 schools competed in nine different categories. The event included panel discussions by 75 different investment professionals, regulators and economists from around the world.

The Viking SMIF posted a gain of 21.6 percent in 2009 and its risk-adjusted return was 9.06 percent. Total fund value currently stands at $371,458.95 for a total return of 23.8 percent.

“We’re extremely proud of our students’ achievement. Credit for this impressive performance and the award goes to every manager of our Student Managed Investment Fund since they began investing in fall 2008,” said Dr. Chenchu Bathala, chair, professor of finance and faculty advisor.

Accepting the first place award were Nance College of Business students Katie Honarvar, Sangram Pradhan, Rahul Sukheja and Asmaae Benmerzouga.

Dr. Bathala said that Viking SMIF’s investment strategy calls for stock allocations within a range of ±4 percent of the S&P sector weights. The student fund managers pursued a disciplined approach to researching stocks and took full advantage of the market’s recovery since March 2009. They shied away from the financial sector for most of the market meltdown during 2008-2009, but engaged in selective investing in such stocks as JP Morgan, Travelers Companies and Visa.

As of March 31, 2010, the Viking SMIF has over-weighting in industrials, technology, materials and energy. It has under-weighting in telecom, utilities, healthcare, and consumer staples and durables. In holding period returns, the biggest winners are United Technologies (87%), 3M (63.4%) and Wall Green Co. (54%). Only three stocks posted negative returns: Apollo Group, Excelon Corp. and Diamond Offshore Drilling.

The Viking SMIF was created in January 2008 with a gift of $150,000 from The Key Foundation, $50,000 from the Nance College of Business and $100,000 from the CSU Foundation in endowment funds, bringing the total initial investment in the fund to $300,000.

The Viking SMIF allows students to gain real-world experience and engaged learning in investments and portfolio management using real money, thereby boosting their academic credentials and career opportunities.

SMIFs are recognized for their value in teaching students, especially finance majors, about critical aspects of investment analysis, investment decision making and portfolio management.

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