The Student Investment Fund is designed to provide a forum in which students can apply investment theory within the real world of money management. The fellowship provides students with a bridge between the theoretical knowledge acquired in the finance curriculum and the practical workings of capital markets.
Each year a handful of students are selected to manage a portfolio of capital that now totals in excess of two million dollars. The Fund is structured to expose students to situations that they would experience if they worked in a typical investment management firm. During an eighteen month period, the Fellows execute a demanding agenda as they tackle investment strategy, asset allocation, security analysis, and organizational and group dynamic issues. For the first six months, the Fellows manage the Fund in two groups, one with a value approach, and the other as a growth fund. The equity portion is then divided equally among the Fellows and managed individually for the remaining six months. The fixed income portfolio is managed as a group for the entire period. During the year, Fellows meet weekly, if not more often, and meet with a Faculty Oversight Committee on a monthly basis. The Fellows also visit over thirty investment managers to learn first hand about different philosophies and styles.
The Student Investment Fund was created in 1987 as a result of the generosity and initiative of Mr. Bernard Johnson, president of Provident Investment Counsel. Provident pledged $50,000 per year over five years to start the Fund. In 1989, Kayne, Anderson Investment Management Co. contributed an additional $250,000. The "Friends of the Student Investment Fund" program was launched in 1993 and has brought in over $250,000 in additional capital to date.
The SIF is a prestigious element of the Anderson experience and interest has been strong throughout the Fund's history. Successful applicants must submit a written essay and pass through two rounds of panel interviews before being selected as one of ten to twelve members of the Fund. Criteria used in the selection process include academic achievement and involvement at UCLA Anderson School of Management, a demonstrated interest in investment management, and proven ability to work effectively in a demanding team environment.
In addition to managing the portfolio, each Fellow assumes a specific function to ensure the smooth operational management of the Fund. These functions include trading, research, faculty liaison, reporting, systems, recruiting, and firm visits. Fellows are also assisted in securing summer internships in the investment management industry. Many firms have participated in the SIF program, including The Capital Group; Foley Revy Investment Company; Hotchkis & Wiley; Franklin/Templeton; Kayne, Anderson; Loomis, Sayles; Nicholas Applegate; NWQ Investment Counsel; Robertson, Stephens & Co.; Roxbury Capital; Scudder, Stevens & Clark; Strome, Susskind; and Trust Company of the West, among others. One hundred students have participated in the Fund to date.