UA’s Rebsamen Fund Outperforms S&P
by August 10, 2009 12:00 am 69 views
We’re not surprised anymore when the University of Arkansas’ Rebsamen Fund outperforms the Russell 1000 and the S&P 500.
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The Rebsamen Fund is a student-managed investment fund established in 1971, with an endowment of $100,000. The purpose of the fund is to prepare students for careers in financial services by allowing them to manage a real portfolio.
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While the Rebsamen Fund was down 24.2 percent over the last year as of June 30, according to information provided by Dr. Craig Rennie, a UA professor who teaches the class responsible for managing the fund, that compared favorably to the Russell 1000 (-26.7 percent) and the S&P 500 (-26.2 percent).
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Over the last five years, the Rebsamen Fund has improved by 1.8 percent, while the Russell 1000 and S&P 500 dropped by 1.8 and 2.2 percent, respectively. The Rebsamen Fund’s value, as of June 30, was $951,211.
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Rennie said the students use the Russell 1000 as a benchmark, “but they do have some flexibility to deviate.”
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Rennie also prefers to assign multiple students to each of the S&P’s 10 sectors in hopes of improving their chances at success. If job placement is any indication, Rennie’s strategy is paying nice dividends.
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Students in Rennie’s most recent class landed jobs at companies like Stephens Inc., Wells Fargo, ConocoPhillips and HSBC.