Upcoming MPSIF Info Session!
2019 Spring Semester Info Session for the Fall term class was held on April 10th in room KMC 2-90 at 4:45pm (to 5:30pm). APPLICATIONS NOW DUE BY APRIL 27th.
MPSIF operates as a 3-credit course split between two semesters (earned in the first term with a grade only once both terms are fulfilled) and meets from 12pm-1:30pm on Tuesdays and Thursdays.
The Michael Price Student Investment Fund (MPSIF) is a family of funds managed directly by NYU Stern MBA students. The fund, part of the overall NYU endowment, was established in 1999 through a generous gift from Michael Price, managing partner, MFP Investors, LLC and former chairman of Franklin Mutual Series funds.
What is unique about MPSIF?
MPSIF provides Stern MBA students interested in pursuing a career in asset management with hands-on experience managing a real fund with significant assets. In addition, MPSIF is required to pay an annual 5% dividend to the University of Oklahoma Price School of Business, Mr. Price's undergraduate alma mater, for its students' tuition to attend summer classes at Stern.
What is the portfolio make up?
For diversification purposes, the fund is divided into three equity funds - Growth, Value and and Fixed Income. While each fund has its own performance benchmark (Russell 1000 Growth Index, Russell 1000 Value Index and the Vanguard Total Bond Index, respectively), MPSIF's primary goal is to deliver overall positive returns that exceed the rate of inflation.
How has MPSIF performed relative to market benchmarks?
At the end of February 2019, MPSIF had assets under management of $2.11 million, excluding more than $1.08 million in mandated distributions since its inception to the Price School. Since making its first investments in March 2000, MPSIF has earned a cumulative return (after trading costs) of 74.3%, or 5.2% per annum, about 0.2% per annum less than an equally-weighted blend of its market benchmarks.
What role do Stern MBA students play in managing the fund?
To become a portfolio manager or analyst with MPSIF, the basis of Stern's "Managing Investment Funds" course, is a competitive process. Stern MBAs must apply to this course, and demand has always exceeded available spots. About 40 students enroll each year and are then responsible for all fund activities: screening and evaluating stocks, preparing and presenting pitches for buy and sell recommendations and strategizing on broader portfolio allocation and risk management decisions. MPSIF students also write a periodic newsletter and prepare annual and semi-annual reports that are presented to the MPSIF Board of Advisors, Stern faculty and other parties.
How does MPSIF benefit MBA students?
Stern MBAs who manage the MPSIF family of funds gain invaluable experience in investment management, which provides a competitive advantage when interviewing for summer internships or full-time employment after graduation. Managing the diverse tasks in MPSIF relies on teamwork, and the course is interdisciplinary in that it requires students to draw on their knowledge of finance, macroeconomics, accounting, competitive analysis, strategy and marketing.