Finance Pupils Pump Up CSUN Portfolio

Four years and an investment boost of more than $300,000 later, finance students are showing Cal State Northridge the money.

In 1993, the University Corp., which runs campus businesses such as the bookstore and food services, gave a portion of its investment portfolio worth $500,000 to an upper-level finance class to manage. As of Monday, the portfolio was worth $835,000.

Students say the University Corp. isn’t all that has fared well. Graduating senior Jack Hannum, 28, took the class last semester. After sending out five resumes, Hannum landed four interviews, and he credits the class with opening doors for him.

“The class is 100% student-run,” Hannum said. “For me, that was amazing.”

Only 12 students are selected each semester to take the class, taught by William Jennings, a CSUN finance professor. Jennings estimated that this semester’s median student grade-point average was 3.6.

While about 40 colleges and universities nationwide offer similar programs, few undergraduate classes offer their students as much money to work with as CSUN. Jennings said the amount has helped students take a serious approach to investing.

“This is real money,” he said. “The students have a fiduciary responsibility. They’re not held to a different standard because they’re students.”

The portfolio hasn’t changed much from year to year, Jennings said. When students do want to purchase another stock, they must research the companies and receive a two-thirds vote from the class before any investment.

Student Carlene O’Neil realized how hard reaching consensus can be.

“If you can’t back up what you are saying, they’re going to call you on it,” O’Neil said. “You have to know how the market is doing and how it operates.”