Jones Journal -- Alumni Magazine of the Jones Graduate School of Management, Rice University

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Deanna Sheaffer, Editor
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M.A. Wright Investment Fund Wins National Title
– By Ross Morgan, Class of 2001

The Jones School winning team among others at the NASDAQ trading opening.

Members of the M.A. Wright Investment Fund won a national investment symposium at the University of Dayton in Dayton, Ohio this spring.

Ross Morgan (MBA ‘01), Steve Harris (‘02), Jonathan McAdams (MBA ‘01) and Greg Broussard (MBA ‘01) at the NASDAQ opening.

The Redefining Investment Strategy Education (RISE) symposium was sponsored by the University of Dayton and many investment institutions and corporations to showcase student- run investment portfolios among the various business schools. The competition was an open invitation to all business schools with a student-run investment portfolio.

Consisting of Ross Morgan (MBA ’01), Jeremy Chio (MBA ’01), and Steve Harris (’02), along with adjunct faculty advisor Rocky McAshan, received a bronze cast statue of a bull and bear in conflict. In addition, the presenting team, along with current and past chief investment officers, Greg Broussard (MBA ’01) and Jonathan McAdams (MBA ’01), opened NASDAQ trading Monday, April 30, 2001 which was covered live on CNBC.

The Wright Fund was chosen as one of five finalists in the value category by outperforming the fund’s benchmark index, the S&P 500, by almost 6 percent from January 2000 to January 2001. The competition’s grading criteria consisted of about 50 percent fund performance and 50 percent presentation of the fund’s operations and strategy, followed by a question and answer session.

The event featured globally recognized investment strategists whose firms manage more than $1 trillion of assets between them and are often quoted in the financial press. The notable speakers included: Dr. Robert Froehlich, vice chairman of the Kemper Funds Group and a managing director of Scudder Kemper Investments Inc.; Joseph Battipaglia, chief investment strategist for Gruntal & Co.; Ned Riley Jr., chief investment strategist for the Global Fundamental Strategies team of State Street Global Advisors; Elizabeth Mackay, chief investment strategist and senior managing director at Bear Stearns; and Alfred Goldman, corporate vice president and chief market strategist for A.G. Edwards & Sons Inc.

Dr. Froehlich, who was one of the judges in the value category, paid a very nice compliment to the Wright Fund team. He said that the team was clearly the best presenter and wished his own analysts could articulate their strategy as well as the Wright Fund team.

About the M. A. Wright Fund

With the past decade witnessing the longest expansion in the U.S. economy, fantastic fortunes have been made in the financial markets, and money management has become a field of great interest and great opportunities. The Jones School offers students a unique learning experience in money management by inviting them to be a member of a student run fund with real money, real objectives, and real rewards and consequences.

The M. A. Wright Fund was established in 1996 with a generous grant made by the M. A. Wright family in his memory. As of December 1, 2000, the assets in the fund had grown in value to over $700,000. The primary objective of the fund is to provide students the opportunity to learn, develop, and practice effective portfolio management styles and techniques while generating scholarships for a few outstanding students each year. Investment decisions are thoroughly researched and based on sound portfolio management practices. In addition, guest speakers from respected investment firms regularly visit the class and offer strategies, insights, and experiences developed through their professional practices. Furthermore, the guests field direct questions from students on anything from investment practices to career objectives.

The established benchmark for performance is the S&P 500, and over the past 12 months, for the year 2000, performance has been exceptional, with the Wright Fund generating a return of 4.33%, relative to the S&P 500, which was down 2.34%, thus outperforming the benchmark by 6.5%. (Performance numbers are from 11/30/99 to 11/30/00).

The class, which is worth 6 academic credits over 2 semesters, has approximately 30 students with four of those serving as elected officers (chief investment officer, chief operating officer, chief information/re divided into 8 groups of research analysts, each covering sectors within the S&P. Each group is responsible for following the current holdings in its respective sectors as well as recommending future buys and sells within its area. Approximately 40-50 stocks are held at any one time, and all buy and sell decisions are made by the collective vote of the class.

Although no specific course prerequisites are required, the class is for those who have a sincere interest in investing in the markets and who may pursue a career in the field of money management. Students who sign up for the class participate in a selection and interview process conducted by the outgoing elected officers and the two adjunct professors. Usually about 15 new students enter the class each semester.

For more information about the M.A. Wright Fund please visit our dedicated website at: www.ruf.rice.edu/~admn543/. Included on the website are the fund’s current holdings, the sector breakdown, performance figures, and research reports generated by the students on both individual companies as well as industries. In addition, there is a list of all the existing students along with their educational backgrounds and contact information.

The M. A. Wright Fund is an educational entity that is run as a professional organization with the highest standards of conduct and long-term objectives suited for the purposes set forth. Students have the power to continue growing and developing the fund into one of the most respected assets of the Jones Graduate School. The officers are currently comprising a list of all Wright Fund alumni. If you participated in the class, please contact Rocky McAshan with a current email and mailing address at rmcashan@frostbank.com. If you have any questions regarding the Wright Fund, information may be found at the above listed website.