MBA Investment Fund

MBA Investment Fund

MBA Investment Fund

McCombs School of Business McCombs School of Business

About the Fund

The MBA Investment Fund is a groundbreaking program that allows a select group of McCombs students to make real investments using real money and bring in real returns. Students who are selected as managers of the Fund get an intimate, firsthand lesson in how wealth is created through investing--all while under the guidance of seasoned McCombs faculty.

The management of the MBA Investment Fund is divided into 5 groups:

  • Group 1 : Financials
  • Group 2 : Consumer Discretionary, Consumer Staples
  • Group 3 : Energy, Industrials, Materials, Utilities
  • Group 4 : Information Technology, Telecommunications
  • Group 5: Healthcare

The student portfolio managers are divided between these five groups and the division of industries between these groups is designed to ensure that each group has approximately one fifth of investable assets under management. The managers in each group are responsible for researching and evaluating acquisition and sell decisions for the stocks within their assigned industry segments.

Student Applications

Students accepted as managers of the MBA Investment Fund will receive a number of unique benefits including:

  • Real world experience investing large sums of money
  • Networking opportunities with leaders in the business community
  • Developing highly-marketable skills recruiters look for

Ready to get started?

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For Recruiters

Recruiters looking to hire from a pool of students with the experience to hit the ground running on day one know that the MBA Investment Fund is a good place to start.

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MBA Investment Fund Details

History

History

The MBA Investment Fund is the first legally constituted, private investment company to be managed by students. The Fund is a limited liability company registered under the laws of the State of Texas. It was created to enable MBA students in the McCombs School of Business at The University of Texas at Austin to obtain real-world experience managing investment portfolios and developing relationships with clients.

Created by Dr. George W. Gau, of the McCombs School of Business and Founding Director of the Financial Education and Research Center, the Fund provides a unique interaction between Texas MBA students and professionals from major national investment firms. Under the direction of Dr. Keith Brown and Sanford Leeds, Esq., a select group of up to 20 students each year work as student portfolio managers with investment counselors on forming strategy and portfolio decisions. They also report to an Advisory Committee made up of leading members from the investment community and faculty from the Department of Finance.

Neither the University of Texas at Austin nor the Board of Regents of the University of Texas has the authority or power to act on behalf of the Fund, to do any act that would be binding on the Fund or to incur any expenditures on behalf of the Fund. Neither the University of Texas nor the Board of Regents of the University of Texas shall be liable for any debts or obligations of the Fund.

Advisory Committee

Advisory Committee

The Chairman of the UT Department of Finance leads the Fund's Advisory Committee. The board chooses the industry members in the Committee from leading finance professionals. The Advisory Committee advises the investment counselors and students on their investment policies. The Advisory Committee holds two formal meetings each year, one in the spring and one in the fall.

Advisory Committee Members as of September 2017

Board of Directors

Clemens Sialm Professor The University of Texas at Austin
Gary T. Crum President CFP Foundation
Robert H. Graham  Principal RHG Holdings, LLC
Robert Parrino Chairman, Finance Department The University of Texas at Austin
Ralph B. Thomas Senior Vice President Fayez Sarofim & Co.

Officers and Staff

Gregory Alves President The MBA Investment Fund, L.L.C.
Juana Hardwick Secretary The MBA Investment Fund, L.L.C
Anita Cunningham Accountant & Business Manager The MBA Investment Fund, L.L.C.

Advisors

Brent R. Adams Managing Principal Kyle Capital, LLC
James F. Arens, II, CFA Chief Investment Officer The Trust Company of Oklahoma
Paul Ballard CEO & CIO Texas Treasury Safekeeping Trust Company
Brian T. Bares President Bares Capital Management, Inc.
Shannon Barry, CFA  Investment Analyst American Century Investments
Tom Bastian Managing Director, Senior Portfolio Manager Invesco Investment Ltd.
Chad Baumler, CFA Portfolio Manager Nuance Investments
Michael Brakebill, CFA Chief Investment Officer Tennessee Consolidated Retirement System
Kenneth M. Burke, Jr., CFA Principal Fayez Sarofim & Co.
Val Burlacu   Petrus Asset Management
Prentiss Burt Managing Director J.P. Morgan
G. Staley Cates, CFA President Southeastern Asset Management
William Charlton, CFA Managing Partner Pavilion Alternatives Group, LLC
Mark Coffelt, CFA President and CIO Empiric Advisors, Inc.
Tim Collins Partner GoldenTree Asset Management, L.P.
Pat Dorsey, CFA Vice Chairman and Director of Research & Strategy Dorsey Asset Management
Ben Fischer, CFA
NFJ Investment Group
J. Philip Ferguson, Esq.
Salient Partners, Ascendant Advisors, & Silver Ventures
C. T. Fitzpatrick, CFA CEO, CIO Vulcan Value Partners
Ben Giele, CFA Managing Partner Gearpower Capital
Stuart Gleichenhaus Senior Managing Director FTI Consulting
Brian Gourley CIO Troubadour Capital
Britt Harris Chief Investment Officer Teacher Retirement System of Texas
Stephen S. Head Senior Managing Director U.S. Capital Advisors LLC
Craig Hester, CFA, CIC Principal Luther King Capital Management
Jim Hille, CFA, CAIA Chief Investment Officer Texas Christian University
Brandon Holcolmb Vice President Goldman, Sachs & Co.
Robert Holt Principal Holt Capital Partners, L.P.
J. Luther King, Jr. President Luther King Capital Management
Mason D. King Principal and Vice President - Public Equity Research Luther King Capital Management
Chris Krantz, CFA Portfolio Manager American Century Investments
 Ed Levy Executive Vice President Churchill Management Group
William McAdams President WJM Capital Management, Inc.
Mark E. McMeans, CFA, CPA CEO Brasada Capital Management
John D. McStay Managing Partner John McStay and Associates
Anmol Mehra Equity Analyst/Portfolio Manager Fidelity Management and Research
Russell Mollen, CFA   Nine Ten Capital Management, LLC
Stephen P. Moore
Moore Capital
Shea B. Morenz Chief Executive Officer Morenz Group
Robert C. Mueller, CFA Sr. Vice President - Investments UBS Financial Services, Inc.
Ray Nixon, Jr.
Barrow, Hanley, Mewhinney & Strauss
John W. Peavy, CFA Chief Investment Strategist Smith Group Asset Management
Beth Robison, CFA Managing Director Hawkins Capital L.P.
Laura Rose Director D W Partners
Gil Scott, CFA Senior Vice President Waddell & Reed
Shashin Shah Founder and Portfolio Manager Think Investments LP
Tushar Shah, CFA Partner Blackhaw Wealth Management, LLC
Michael Shearn President Time Value of Money, L.P.
Alex C. Smith, CFA Founder and CEO Meritage Capital, L.P.
Ken Spruell
Sky Pond Capital
Alan Tarver  Fund Co-Manager and Regional Portfolio Manager Frost Investment Advisors
David Telling Fund Co-Manager Frost Investment Advisors
Warren W. Tennant, CFA Portfolio Manager Invesco Investment Services, Inc.
John M. Thornton, CFA Vice President, Portfolio Manager Stephens Investment Management Group, LLC 
Tom Tull, CFA CIO Employees Retirement System of Texas
Michael Turner President, Houston Market Mutual of Omaha Bank
Ted Wang Partner Goldman, Sachs & Co.
Brad Warden Investment Analyst Waddell & Reed
John H. Watts Chairman Fischer Francis Trees & Watts

Faculty Advisors

Keith C. Brown, CFA
Professor The University of Texas at Austin
Michael Clement Professor The University of Texas at Austin
Jonathan Cohn Associate Professor (Director, FAP) The University of Texas at Austin
John Griffin Professor The University of Texas at Austin
Greg Hallman
Senior Lecturer
The University of Texas at Austin
Jay Hartzell
Dean - McCombs School of Business The University of Texas at Austin
Kelly Kamm
Senior Lecturer
The University of Texas at Austin
Sandy Leeds Distinguished Senior Lecturer The University of Texas at Austin
Robert Parrino Professor The University of Texas at Austin
Ehud I. Ronn Professor The University of Texas at Austin
Laura T. Starks Professor The University of Texas at Austin
Sheridan Titman Professor The University of Texas at Austin

 

The Fund's Directors, Advisors, and Student Portfolio Managers assist the fund on an uncompensated basis. No management fee is assessed to the investors by the Fund. However, operating and administrative costs associated with the Fund are charged to the Fund's investors.

Invest With Us

Invest With Us

The business world is full of investment opportunities, but only the MBA Investment Fund comes with the expertise of McCombs faculty and a chance to encourage current students while growing our school's legacy. McCombs offers you two ways to invest with us:

Growth Fund
The Growth Portfolio is an aggressive diversified portfolio with the potential for higher than average returns. Portfolio managers follow a top-down investment philosophy for selecting stocks. At the core of the top-down approach is an economic forecast that is generated by the fund manager in the role of the MBA Fund Economist. From this economic forecast, the internal economist and the five risk managers target each individual sector that is a part of the Growth Portfolio’s benchmark index (S&P 500/Citigroup Growth Index) and form a recommendation, to be approved by all Portfolio Managers, on whether the specific sector is deserving of an overweight, underweight or market weight position within the Growth Portfolio. Portfolio Managers of all five sector groups are to make purchase and sale decisions with these target sector allocations in mind and with the goal of matching the target weights as determined by the MBA Fund Economist and the MBA Fund Risk Managers.

With regards to individual stocks, the Growth Portfolio will concentrate on mid to large cap companies that have been identified as growth companies undergoing positive changes and meet certain investment criteria. The primary research focus for prospective stocks in the Growth Portfolio will not be an important investment criteria as companies included in the Growth Portfolio are expected to reinvest earnings for further expansion instead of making cash distributions of shareholders.

Value Fund
The Value Portfolio is a diversified value-focused fund making investments in stocks that are perceived to be trading below their full potential. Portfolio managers may select undervalued stocks based on a bottom-up, intrinsic value and relative value basis. In the pitch process, the Portfolio Manager attempts to identify a catalyst. It is through the realization of the catalyst that the undervalued stock will, over time, reach its full potential value. Examples of a catalyst include, but are limited to, a reversal in negative sales and margin trends, an expectation of exceeding Wall Street consensus estimates, changes in management, reversal of key industry trends, product launch or mix shift, litigation settlement, decline in interest rates, or regulatory changes. In contrast to the Growth Portfolio, the Value Portfolio is sector neutral.