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It is More Than "Just A Class" By Mary Ernst & Tammy Tragis-McCook

Above: The first six UAF Student Investment Fund presidents.

It's Time to Celebrate

Celebrating 30 years of success and growth of the Student Investment Fund provides a perfect opportunity to look back on how being a part of SIF positively impacted those who took the class in years past. On Tuesday, Nov. 30, SIF students gave a showcase presentation to alumni to highlight the current portfolio and offer predictions on the future.

During the showcase, students gained insights from a diverse group of alumni - including Steve Bainbridge, who oversaw the fund in its infancy as the second president, as well as more recent SIF alumni, such as Alec Hajdukovich (2016 graduate) and Peter Freymueller (2019 graduate and 2018-19 president).

Fall 2021 students and faculty advisor, Kim McGinnis, with alumni during the SIF 30th-Anniversary Showcase on Nov. 30, 2021.

Mary Lindahl, a former CBSM faculty advisor, recalls how the Student Investment Fund came about.

“The SIF was initiated after the students joined an AT&T Collegiate Investment Challenge. Chancellor O’Rourke said if the students can do that well on paper, we’ll give them some real money to manage. So, Chancellor O’Rourke started putting money away and it took two years to set aside enough funds. We received the $100,000 on Tax Day, which was April 15, 1991. The first students who ran the fund were so nervous about losing money! They didn’t want the money to disappear and lead the administration to think they couldn’t do it. And so, they researched everything they did so carefully.”

The SIF was created in 1991 with an investment of $100,000 by UAF Chancellor O’Rourke from the UAF Chancellor unrestricted fund, which is funded through private donations. Currently, the SIF is worth approximately $2.2 million. It boasts a risk-adjusted return on par with its benchmark, the S&P 500, and supports several need-based scholarships each year. The details of how the SIF has grown and transformed can be found here.

Photo Description: A clipping from The National College Newspaper announcing the First Annual AT&T Collegiate Investment Challenge from the Nov./Dec. 1988 issue.

Humble Beginnings

Steve Bainbridge was the second president to oversee the Student Investment Fund during the spring and fall semesters of 1992. Not only has he kept up with the changing tides of finance, including a current interest in cryptocurrencies, but also has followed along with the SIF and its continued growth. Steve took the lessons learned from the SIF and became a day trader. He stated, “I never wanted to leave Alaska, and I took what I learned from the Student Investment Fund to manage my portfolio and that, for me, has been very rewarding. While some SIF students may walk out the door and interview with the permanent fund or another company, some may simply want to get their nest egg and manage their portfolio. The Student Investment Fund gave me the tools and equipped me to do just that.” Steve also gets to enjoy life as co-owner of the Seldovia Harbor Inn with his wife during his off time.

Dan Flodin, SIF president in spring 1994, recalls when he was a student, “I pitched Microsoft as a buy-in my first semester in 1993 and it turned out to be one of the biggest successes in the early SIF history. The risk bylaws of SIF required subsequent classes to keep selling portions of the stock because Microsoft stock kept splitting and appreciating and would dominate the total value of the SIF fund otherwise.”

“Technology has changed so much. We used to get the Washington Street Journal in paper several days after it was published (often two or three at once). There was no wsj.com - it was mostly pre-internet, apps and smartphones. We had this dinky little 10” Apple monitor and it would take about 30 minutes or more just to run our portfolio price updates. I still reflect on my UAF education, both undergraduate and graduate, and SIF was probably one of the most enriching classes. You don't just study theory, you get to practice it and do things.” - Dan Flodin

Dan is now the Chief Procurement Officer at Alyeska Pipeline Service Company, which provides oil pipeline transportation from the North Slope of Alaska.

Tammi Weaver oversaw the accounting for the SIF for the UA Foundation from 1993 to 2017. She watched it evolve from a $100,000 fund invested entirely in bonds to well-diversified equity and REIT fund worth more than $1.4 million and she added “the ability for business students to actively trade securities using real money, adhering to established investment guidelines, conducting research on Bloomberg terminals and presenting to peers and an advisory committee is an incredibly valuable experience for those desiring to enter the investment or business industries. A portion of the investment earnings is awarded as scholarships to give back to UAF. This class is a success story on many levels and a student favorite.”

Student Investment Fund made headlines in the Fairbanks News-Miner on Jan. 6, 2000, in an article titled “UAF student investors to offer stock picks on TV.” Photo courtesy of Fairbanks News-Miner.

Peter Freymueller took the class from fall 2017 through fall 2018 and is now working for BP in Chicago, Illinois. Even as a recent graduate, Peter has reflected on his learning and said, “SIF created the foundation in my understanding of financial markets, economics, problem-solving skills and confidence in my ability. Most importantly, it taught me how to communicate effectively. I have brought up SIF in every significant interview I have had.” The opportunities that the fund offers to students are known to be a way to stand out against other candidates, especially in Alaska.

Photo Description: Peter Freymueller (second from right) with classmates in front of the Charging Bull statue during the SIF trip to New York City in spring 2019. Photo courtesy of Peter Freymueller.

Cheers!

Kim McGinnis, the current faculty advisor for SIF, looks forward to the future of the Student Investment Fund.

“As the finance industry grows and adapts, so, too, will the Student Investment Fund. I see the Student Investment Fund working more collaboratively with our peers in the natural sciences and engineering, as contemporary investment management practices favor strong technical skills such as computer programming and deep industry expertise. I also see us incorporating Environmental Social and Governance criteria into our bylaws and investment selection process to mirror the shifts we see in professional asset management. Inspired in part by the pandemic, we are also exploring ways to offer hybrid and online aspects of the class, to help expand access to rural and remote students, as well.”

So, here’s to another 30 years of success with the Student Investment Fund! In the words of Tammi Weaver, “Congratulations on the 30th anniversary of the fund, and I wish you many more bulls than bears!”