Portfolio Practicum

Portfolio Practicum is a two semester "hands-on" undergraduate course in the College of Business at Creighton University. The class oversees a student managed investment fund with approximately $2.7 million in equity investments for the Creighton University Endowment Fund. Eligible students apply for the class during the Spring semester of their Junior year. Applicants enter an interview process to gain acceptance to the class for the following academic year. The Fall semester of the class focuses on equity research and valuation techniques. Students also will revalue the existing stocks in the portfolio. In the Spring semester, students learn about the concepts central to portfolio construction and portfolio management. Students present investments they believe would be good additions to the portfolio. The student managed fund is held to the same level of accountability as other outside managers by the University Investment Committee. Students brief the committee on an annual basis regarding the investment decisions made during the previous year. 

Our Investing Strategy

We employ the value investing strategy developed by Benjamin Graham and David Dodd and refined by Warren Buffett. The principle behind this is to find a stock that has an intrinsic value that we calculate below what the market perceives it to be worth. Characteristics that are important to all value stocks include: a low price to earnings ratio relative to its industry, a high and consistent dividend yield, a price to book ratio close to one, and stable earnings.

Our Policies

The decision to buy or sell a particular security is contingent upon a class vote with at least a 75% approval. This process was implemented in order to emphasize the importance of presenting stock reports with significant research and strong analysis, so that the most attractive securities will be considered. Our portfolio is also restricted to the 5% rule. The amount invested by the Portfolio in any single asset must not exceed 5% of the total assets in the portfolio. In addition, investment in preferred stocks and fixed income securities are prohibited.

"Our students, under the guidance of experienced faculty,
have a unique opportunity with the Portfolio Practicum to
manage real money in real markets. This course challenges
our students to step beyond textbooks into the real world
of financial markets."

Dr. Anthony R. Hendrickson, PH.D.
Dean of the College of Business
Creighton University