University of Texas at Austin
Wall Street Bull

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 four groups:

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

The student portfolio managers are divided between these four groups. The managers in each group are responsible for researching and evaluating acquisition and sell decisions for the stocks within their assigned industry segments.

View the Class of 2021 Investment Fund Managers

Student Benefits

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

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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 George W. Gau and Keith C. Brown, the Fund provides a unique interaction between Texas MBA students and professionals from major national investment firms. Under the direction of Clemens Sialm and Greg Alves, 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 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.

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 Professor 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.

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.

Investment Funds

Investment Funds

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. The MBA Investment Fund manages two funds.

Stock Fund
The Stock Fund 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 Stock Portfolio’s benchmark index (S&P 500) 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 Stock Portfolio. Portfolio Managers of all four 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.

Endowment Fund

The Endowment Fund manages endowments for the AIM Investment Center, the Business School Foundation (BSF), and various scholarships and donations for the McCombs School of Business.  It has the objective of long-term growth and preserving the long-term real purchasing power of assets while providing a relatively predictable and growing stream of annual distributions in support of the McCombs School of Business.  The Endowment Fund is a well-diversified asset allocation portfolio including domestic and international equities and domestic fixed-income securities.