Students Get A Taste Of Wall Street With Investment Organization
By Ammy Sanchez and Carolina Soto
A pinch of Wall Street is coming to Miami Dade College.
The Student Managed Investment Fund—an organization that invests in the stock market using real money—was started on March 31.
It’s run by 13 students who have taken economics or finance courses and completed Bloomberg Certification. Although based at Wolfson Campus, the fund is open to all MDC students. They are advised by economics professor Robert Foran.
“It’s so exciting to have the opportunity to learn how to develop a project from scratch,” said Camilo Parra, a first-year business management student who serves as the investment committee chair. “Putting your hands on money and learning to manage [it] is a great experience to have.”
The group received an anonymous $20,000 donation to jumpstart the project. The SMIF can invest in companies that are part of the S&P 500 index, a list that shows the 500 leading companies in the United States like Apple, Microsoft and Amazon.
“I want the students to grow in their financial skills but also their leadership,” said Foran, who has a bachelor’s degree in economics from the University of Florida, a master’s degree in economics from the University of Essex in England and a doctorate in curriculum studies from Florida International University.
The SMIF consists of three committees that meet every Wednesday at Wolfson Campus’ Business Innovation & Technology to discuss possible investments, strategies and procedures. They also meet online through Zoom every two weeks to provide an updated analysis of the fund.
The work begins with the Investment Committee analyzing the stock market twice a week through the Bloomberg Terminal to seek potential investments.
Students use the Investment Policy Statement, a document that requires them to consider the risk indicators, financial statements and opportunity for growth of an investment, to make decisions.
Investments are then made through Interactive Brokers.
The Reporting Committee will eventually make the results public on the fund’s website.
If an investment stock is losing money, they will consider selling it and work with advisors to see what was done incorrectly.
After investing, the Oversight Committee continues to run an analysis of the overall risk of the fund losing money and remains in charge of ensuring that the fund follows the Investment Policy Statement.
So far, the students have bought six stocks from Raytheon Technologies Corporation—an aerospace and defense company. They bought each stock for $98 and now they are valued at $105.
The profits will be held in an account by The MDC Foundation. Once the fund reaches $500,000 in profits, students will have the opportunity to designate a portion of the money to be dispersed as scholarships throughout the College. The remaining would be used to continue investing.
“It’s a great opportunity for students to manage real money and function like real professionals on Wall Street,” said Kevin Guillen, a first-year accounting student who serves as the chair of the Oversight Committee.
To join the organization, click here. For more information, contact professor Robert Foran at (305) 237-7665 or rforan@mdc.edu.
