The UCLA Anderson Student Investment Fund (SIF) allows selected second-year MBA candidates to invest real money in the stock and bond markets. It is structured to expose students to situations that they would experience if they worked in a typical investment management firm. Conducted under the auspices of the Price Center for Entrepreneurship & Innovation, the faculty-supervised group engages in all aspects of portfolio management, investment analysis, asset allocation and trading strategies, as would a professional management team. Students are responsible for all administrative details of managing the fund (which currently exceeds $1.7 million); students also arrange guest speakers.
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.
During an 18-month period, 10 to 12 SIF fellows assume specific functions to tackle investment strategy, asset allocation, security analysis, and organizational and group dynamic issues. For the first six months, they 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, valued in excess of $2 million, is managed as a group for the entire period. Fellows meet at least weekly and with a faculty oversight committee on a monthly basis. Fellows also visit over 30 investment managers to learn first hand about different philosophies and styles.
The SIF was created in 1987 through the generosity and initiative of Bernard Johnson, president of Provident Investment Counsel. Provident pledged $50,000 per year over five years to start the prestigious fund. In 1989, Kayne, Anderson Investment Management Co. contributed an additional $250,000. Over three hundred students have participated to date. The Friends of the Student Investment Fund program was launched in 1993 and has brought in over $250,000 in additional capital.
Successful applicants must submit a written essay and pass two rounds of panel interviews. Criteria in the selection process include academic achievement and involvement at UCLA Anderson, a demonstrated interest in investment management, and proven ability to work effectively in a demanding team environment.
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.