Sea Gull Fund
Starting the Fall 2000 semester, the Perdue School joined a growing number of Business Schools which offer students an opportunity to manage and administer an investment portfolio.
The Perdue School of Business at Salisbury University has long been a strong proponent of experiential learning, and is widely recognized as a leader in the state and region in providing experiential learning opportunities for its students, primarily through its Applied Business Learning Experience (ABLE) program. The Sea Gull Fund is an excellent addition to the range of experiential learning opportunities at the Perdue School.
Typically student managed investment portfolios are funded from private sources, and are designed to provide students with an opportunity to conduct security analysis and research, and make investment decisions in a realistic environment. Careful structuring and design of the program can help students experience life as security analysts and portfolio managers, and provide an experience that is sure to be a valuable tool in advancing career opportunities and employment options in the investments field.
While there has been a rapid increase in the number of Universities that have implemented student managed investment portfolios in the last decade, this type of opportunity is still quite rare in business education, with approximately 200 such programs in existence nationwide. The Sea Gull fund is the first student-managed portfolio managed exclusively by undergraduate students within the University System of Maryland.
Sea Gull Fund Continues to Grow
SU is known for providing experiential learning for students. The Sea Gull Fund, a student-managed investment portfolio valued at over $2.0 million, is just one such opportunity. It is the first investment portfolio directed by undergraduate students within the University System of Maryland.
Funding
The Sea Gull Fund is 100% privately funded. Funding sources include the Judkins Family, the Perdue School Margin account funds, and SU Foundation Investment account funds.
Implementation
In order to implement the Perdue School Student Investment Fund, a new 3 hour course (Practicum in Portfolio Management - FINA 449) was developed, and offered during the Fall 2000 semester for the first time. The course is staffed by Finance faculty, and is offered each Fall and Spring semester, with a possibility of an expansion to Summer term offering in the future. Enrollment in the course is limited to 20 students, and admission to the course is by application. Applications are reviewed by the Department Chair, in conjunction with the course instructor, prior to the pre-registration period during each semester. Students are allowed (and sometimes encouraged) to repeat the course for credit, to facilitate continuity in the management of the portfolio. Course requirements include designing a long-term investment strategy, preparing and presenting security research reports, implementing investment decisions, monitoring portfolio performance and compliance with investment guidelines, making decisions regarding portfolio adjustments, record keeping, portfolio performance evaluations, preparing regular account statements, and making presentations to faculty and/or Department of Economics and Finance Advisory council.
Investment Policy Statement
The investment goal of the portfolio is a strategic core-oriented allocation to the overall domestic equity market. The investment objective of the portfolio is to achieve long-term capital growth by investing in marketable U.S. equities with a risk profile that is similar to that of the market benchmark (defined as the S&P 500 Index). The portfolio’s performance objective is to generate a total return in excess of the benchmark in each 1-year, 3-year and 5-year period.