The Dragon Fund, a student-managed fund at Drexel University’s LeBow College of Business, reported its strongest year yet in 2013. The fund, which specializes in US midcap stocks, has outperformed the S&P 500 index and US midcaps since its inception in 2007.
If a person had invested $100 dollars in the market in 2007, they would have $145 today. If the same person had invested that $100 in the Dragon Fund in 2007, they would have $215 today.
Drexel University initially invested $250,000 in the Dragon Fund. The University was so impressed by the Dragon Fund’s performance that they invested an additional $100,000 in the fund in 2011, and $450,000 in 2013. The total value of the fund was $1.2 million at the end of 2013, making the fund one of the largest student-managed portfolios in the US.
The Dragon fund also provides crucial practical experience for students. Daniel Dorn, an associate professor of finance at LeBow, observes “It’s very difficult to get an entry-level job in asset management. Companies look for people who already have some experience. We help provide that experience by teaching valuation and portfolio management skills, but it’s the students who analyze their sectors, choose the stocks, and make the buy and sell decisions.”
Students in the classes “Applied Portfolio Management” and “Advanced Portfolio Management” have the opportunity to manage the fund. Over the course of the class, students develop proficiency with institutional investing software and receive feedback from investment experts.