The Investment Praxis course allows students to gain hands-on investing experience with actual monies. The Praxis Fund is a student-managed fund run in association with the Investment Praxis course. The Fund manages over $540,000 of Olin Business School's money, up from an initial $300,000 in April, 1997. The course is offered concurrently to both BSBAs and MBAs in the spring semester. Ohad Kadan teaches the course. The focus of the class is on the same institutional restrictions that are faced by professional managers, and students experience firsthand the issues and considerations of managing investments for the benefit of others.

In Spring, 2000, a $1-million contribution to the University from Max and Deborah Stern established a second student-managed investment fund. Students managing the Stern Global Investment Fund use short-term securities and bank deposits denominated not only in the U.S. dollar but also in the yen, pound, sterling, and euro. Their performance benchmark is a blend of short-term interest rates in the target currencies.

FIN 428: Investment Praxis
Students serve as managers of a portfolio, the Investment Praxis Fund, which is owned by Olin Business School. Students analyze investment opportunities in various industries and present recommendations to the class for possible purchases or sales of securities. Students demonstrate that their investment decisions are consistent with the style and objectives of the fund. Valuation tools and financial statement analysis are emphasized as part of a thorough analysis. Course emphasis on contact with investment professionals such as portfolio managers, securities traders, consultants, custodians, and plan sponsors.

Prerequisites: Senior standing and Fin 340, Acct 466, and one additional finance elective; or completion of either one advanced finance elective or Acct 466 and concurrent enrollment in the remaining course prerequisite and acceptance by the IP Admissions Committee. Students must submit a cover letter and resume to the Office of Undergraduate Admissions by mid April for admission consideration.

FIN 528: Investment Praxis
This course will examine the practice of institutional investment management and provide the student with hands-on experience in the day-to-day activities of professional investment managers. The course will emphasize contact with investment professionals, including portfolio managers, securities traders and salesmen, lawyers, consultants, custodians, and account administrators. Once the students demonstrate that they are organized and prepared, it is anticipated that, under the watchful eye of seasoned investment professionals, that they will invest funds over which they will have discretionary investment authority. In addition to enhancing motivation, responsibility for real investments is intended to provide the students with a realistic perspective on the importance of the full range of activities, both glamorous and mundane, that comprise institutional investment management. Students will gain experience in setting appropriate investment objectives, in asset allocation, in risk management, in asset selection, in trade execution and settlement, in portfolio accounting, in performance evaluation, and in client reporting. In contrast to traditional investment courses, this course emphasizes the problems and considerations of managing investments for the benefit of others in the role of agent or fiduciary. Students will analyze the needs of prospective clients such as university endowments, insurance companies, pension funds and corporate treasurers. They will devise investment strategies while contending with tax, accounting, and regulatory considerations. In addition, students will manage their own activities, dealing with issues ranging from compliance and account administration to ethical standards, potential conflicts of interest, and confidentiality requirements.

Prerequisites: Fin 5200; or Fin 5201 and Fin 5202.