Axe ’Em, Jacks!
NACOGDOCHES, Texas –– Stephen F. Austin State University students are managing an investment portfolio valued at approximately $2.73 million following a recent contribution from The University of Texas/Texas A&M Investment Management Company to the Mast Student Investment Roundtable Fund in the Nelson Rusche College of Business.
UTIMCO, the first external investment corporation established by a public university system, manages assets for both The University of Texas and Texas A&M University systems. The increase in funds — made possible through SFA’s 2023 affiliation with the UT System — has nearly tripled the amount of capital available to students enrolled in the Mast Student Investment Roundtable course.
“More funds mean more opportunities for our students to gain hands-on experience managing real investments — the kind of experience that prepares them to responsibly invest client money in their future careers,” said Dr. Kyle Jones, associate professor of finance and instructor for the course.
SFA is one of several institutions in the UT and Texas A&M University systems that have received seed money from UTIMCO for their student-managed funds. The money remains UT System money, but it is handled by the students overseeing each university's student-managed investment fund.
“This is set up to be a long-term relationship,” Jones said. “Over time, the balance is expected to grow considerably, increasing the funds managed, the associated learning opportunities and the prestige that it will bring.”
Students managing the funds must follow the guidelines of UTIMCO’s formal investment policy statement, and UTIMCO has the right to withdraw some or all the funds at any time.
“Basically, this is no different than the relationship between an investment firm and a client who has entrusted the firm to manage the client's money,” Jones said. “This fiduciary responsibility is a critical piece of the course that students learn: invest within the guidelines laid out by the client since it is their money.”
The Mast Student Investment Roundtable course is open to students who have completed the prerequisite course, “Introduction to Investments,” ensuring that participants have a solid foundation in financial concepts and modern portfolio theory before managing real funds.
The student managers aim to outperform the S&P 500 index by strategically allocating assets and selecting stocks across multiple sectors. They increase holdings in high-performing sectors, reduce exposure to weaker ones and identify top-performing companies within each area.
“This experiential learning opportunity goes far beyond a typical classroom experience,” Jones said. “Students devote significantly more time to research and analysis than they would for a traditional course, and they gain skills that are immediately applicable in professional investment settings.”
Students work in teams covering sectors such as energy, financials and utilities. Each group researches market trends, evaluates individual companies and presents formal stock recommendations to the class. After written and oral presentations, the class votes on each proposal before making investment decisions.
To maintain continuity, student analysts also prepare executive summaries explaining their buy and sell decisions, which are passed along to students managing the portfolio the next semester.
Throughout the semester, students receive guidance from investment professionals who share insights on market conditions and portfolio management strategies.
For more information about the Mast Student Investment Roundtable course and SFA’s Department of Economics and Finance, visit sfasu.edu/ecofin.