Feb 232003
 
Authors: Amy Resseguie

The Summit Student Investment Fund is allowing CSU students to gain experience in trading stock and managing investment portfolios.

A group of 15 finance and real estate students participate in the fund, investing donated money in hopes of eventually creating a scholarship fund for other business students.

“The fund is a great opportunity for business students,” said Michael Hall, summit fund vice president. “CSU students should be really proud of their finance department.”

The fund developed out of an investment analysis class taught by Glory Burns, who now serves as a faculty advisor for the group. Through her course, students gave presentations about different stocks.

In 1999 Bob Everitt, CEO of Everitt Companies, which own various properties in and around Fort Collins, including Foothills Mall, saw some of the presentations and was impressed by the students’ knowledge of the investment world.

Everitt donated $50,000 for the students in the summit fund to invest at their own discretion. Currently the fund has grown to more than $100,000. When the fund reaches $1 million, the money will be turned into a scholarship fund.

Students from the summit fund will also be traveling to the University of Dayton March 26 to 28 to compete in the National Investment Competition. “It’s a competition for all the student-run funds in the nation,” said John Groneman, president of the fund.

“We are judged based on a risk-adjusted return basis; how much you get based on the risk you take,” Hall said.

The winner of the competition is featured on CNBC. Last year, CSU’s group placed fifth.

The fund’s main investment strategy is to think as though they are buying the company, not just the stock. Therefore, they make long-term investments in large, well-known companies. Currently students are investing money in companies such as Wal-Mart and General Electric Co.

According to Burns, working with the fund is a very prestigious opportunity for business students. Applicants must go through an extensive interview process and prove their understanding of investments.

Burns added that the experience students gain is invaluable.

“Some of our students in the fund have gone on to land fabulous jobs,” she said. “One works for Goldman Sachs Investors and another manages money for the Bill Gates Foundation.”

Groneman feels that working with the fund has been a wonderful and helpful experience for him.

“Personally, this has been hands-down the best experience of my college career,” he said. “It allowed me to take what I learned in the classroom and put it to work with real money.”

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