In an approach that literally brings pragmatic-world experience into the classroom, the graduate students in Loyola’s “Sellinger Applied Portfolio [SAP] Fund” class are managing approximately $500K of the college’s endowment funds.

First offered in Fall 2006, the two-semester elective course is taught by Walt Reinhart, Professor of Finance and Academic Director of the Master of Science in Finance program.  The concept of having students manage a portion of Loyola’s Endowment was reviewed and approved by the Investment Committee of Loyola’s Board of Trustees. Additionally, a SAP Fund Advisory Board was created to advise and act as a sounding board for the class. Students must apply to join the class, with qualifications reviewed and final decisions made by the Department of Finance.

“We have a wonderful group of conscientious students,” explains Reinhart. “They are extremely committed to the fund and its success, and take every decision very seriously.”

The two-semester class mixes academic theory with pragmatic application and includes outside experts who lead discussions, comment on current market trends, and review/critique the students’ investment decisions.

Along with the realities and responsibilities of managing real money, the students are also exposed to the different backgrounds and points of view that each brings to the table. Because all decisions are made by consensus, a collaborative cohort process is the key to the success of the class – and the fund.

To date, the fund has outperformed its benchmark, the S&P 500, and the advisory board is very pleased. Professor Reinhart and Loyola plan to continue to offer the class each year and former students will stay involved as advisors and mentors.

If you are interested in applying for the course, or would like more information on the “Sellinger Applied Portfolio Fund” class, visit the Sellinger Applied Portfolio Fund page.

(based on 1/30/07 conversation with Walt Reinhart)