Although Wall Street has faced hard times in recent months, CU-Â鶹¹ÙÍø Leeds School of Business students are investing -- and coming out ahead.
During the fall 2001 semester, on an original investment of $180,000, they showed earnings of almost $30,000 or a return of 15.23 percent.
As part of the Leeds School's Seminar in Investment Management class, finance students have access to the Rollé Student Investment Fund to gain real-world experience making investments and apply financial knowledge gained at the school.
The class's investments included companies in the biotechnology, energy, financial, socially responsible and technology sectors and companies in Colorado. The class evaluated potential investments based on industry benchmarks, current news, diversification and financial performance.
"The objective is to provide students with an understanding of the field," said Steven Manaster, dean of the Leeds School. "This gives them an opportunity to manage real money based on investment theory and professional wisdom. The school is committed to emulating the best business practices that are the foundation of wealth creation in world business."
Gary and Della Rollé, parents of a student enrolled at the Leeds School of Business, created and endowed the fund in 1999. The original endowment was $200,000, but changing market conditions only allowed students to invest $180,000. Distributable earnings from the Rollé Fund will be applied to scholarships for outstanding undergraduate students enrolled at the Leeds School. Gary Rollé, president and chief investment officer of Transamerica Investment Management, LLC, in Los Angeles, participates in the fund's oversight committee.
The class provides an overview of investing from an academic perspective and teaches students to formulate their own trading rules based on fundamental and technical analysis. Topics covered include risk and return, valuation, mergers and acquisitions, professional asset management and investments.
"My goal is to show students how to evaluate whether or not their investments are doing well and to convince them that while markets are fairly efficient, anomalies can occur," said Eric Hughson, associate professor of finance who teaches the course.