Faculty Letter
2
16 th Sept 2009 ULSMP University of Limerick [email protected] Faculty of Accounting and Finance, Last year an idea was circulated to set up a Univer sity of Limer ick Studen t Managed Portfolio (ULSMP). It was envisaged that this fund would give students the cha nce to par tic ipat e in real inv estment decisi on mak ing befo re leav ing college. Prospective employers in certain areas of Finance look very favourably on those who have experience in trading real shares and derivatives. Many of the U.S. based universities have already established student investment funds that started with only a few thousand dollars. Some of the larger ones are now valued in the tens of millions of dollars. These types of fund are a relatively new concept in European and Irish universities so this could be an opportunity for our graduates to steal a march from competing graduates of these colleges. Simulation, while important to learn both the basic and complex, is not the same as trading real money. A fund whose investment strategies are decided by the students themselves will give them a real feeling for the markets and prepare them for the investment business. Two of the investment ideas last year were to invest in Irish Banks and DXOs. The DXO is a double-long oil index, whereby the price movements of oil are double the stand ard returns. This type of strategy incorpor ates some degree of lev erage and had it been impl ement ed we would have booked si gnif icant returns. The fund was not init iated last year because of st udent’s course commitments towards the end of the semester. It is hoped that a start can be made this year in the two weeks. As faculty, you have the opportunity to make an investment to support this student initiative. If this pilot is successful then the fund could grow year on year. A small seed could, over time and with measured risks, become a sustainable portfolio that would be a powerful educating tool for students. This could have the potential of uniquely placing them in this weak jobs market. Faculty support would be seen as indispensible. Input and guidance from such experienced staff will be extremely beneficial. Any investment allocations made however will be subject to a majority vote and Finbarr Murphy will have the final say as club executive. Rules and guidelines are attached. A Faculty investment form is also included. This fund will benefit the reputation of U.L., its students and its staff. I thank you in advance for your support.
Transcript of Faculty Letter
8/14/2019 Faculty Letter
http://slidepdf.com/reader/full/faculty-letter 1/2
16th Sept 2009
ULSMP
University of Limerick
Faculty of Accounting and Finance,
Last year an idea was circulated to set up a University of Limerick Student
Managed Portfolio (ULSMP). It was envisaged that this fund would give students
the chance to participate in real investment decision making before leaving
college. Prospective employers in certain areas of Finance look very favourably
on those who have experience in trading real shares and derivatives.
Many of the U.S. based universities have already established student investment
funds that started with only a few thousand dollars. Some of the larger ones are
now valued in the tens of millions of dollars. These types of fund are a relatively
new concept in European and Irish universities so this could be an opportunity
for our graduates to steal a march from competing graduates of these colleges.
Simulation, while important to learn both the basic and complex, is not the same
as trading real money. A fund whose investment strategies are decided by the
students themselves will give them a real feeling for the markets and prepare
them for the investment business.
Two of the investment ideas last year were to invest in Irish Banks and DXOs.
The DXO is a double-long oil index, whereby the price movements of oil are
double the standard returns. This type of strategy incorporates some degree of
leverage and had it been implemented we would have booked significant
returns. The fund was not initiated last year because of student’s course
commitments towards the end of the semester. It is hoped that a start can be
made this year in the two weeks.
As faculty, you have the opportunity to make an investment to support this
student initiative. If this pilot is successful then the fund could grow year on year.A small seed could, over time and with measured risks, become a sustainable
portfolio that would be a powerful educating tool for students. This could have
the potential of uniquely placing them in this weak jobs market.
Faculty support would be seen as indispensible. Input and guidance from such
experienced staff will be extremely beneficial. Any investment allocations made
however will be subject to a majority vote and Finbarr Murphy will have the final
say as club executive.
Rules and guidelines are attached. A Faculty investment form is also included.
This fund will benefit the reputation of U.L., its students and its staff. I thank youin advance for your support.
8/14/2019 Faculty Letter
http://slidepdf.com/reader/full/faculty-letter 2/2
(Closing date: 29nd September ’09)
Jim Redington
M.Sc. Computational Finance ’08-‘09
