The learning experience continues : two decades and counting for CSULB’s SMIF program

Purpose: The student-managed investment fund (SMIF) program at California State University, Long Beach (CSULB), was launched in 1995 with one portfolio worth $50,000. In the two decades since then, the program has grown to include three portfolios with a combined value of more than $700,000, managed on behalf of three different clients. The purpose of this paper is to describe the creation, evolution and growth of the program including the development of the new quantitative approach and its subsequent implementation. The paper also discusses the ongoing organizational, educational and investment-management challenges associated with the program. Design/methodology/approach: The paper includes a description of the development and evolution of the program along with a discussion of the investment results for one of its three portfolios. Findings: The paper finds: the new quantitative approach implemented in the program is effective as insurance against “black swan” events; and SMIF-type programs can provide learning experiences both for students and faculty members. Practical implications: The paper explains the practical application of the new quantitative approach as well as the educational benefits of a SMIF-type program. Originality/value: The paper provides insight into the structure of CSULB’s SMIF program and discusses a unique quantitative approach to asset allocation and security selection.