The UAB Green and Gold Fund, a student-managed investment portfolio, began with $300,000 in 2005 and has nearly doubled in value since its inception, outperforming the Dow Jones Industrial Average, the S&P 500 and the NASDAQ. The feat is made more impressive considering the fund is required to hold lower-risk, lower-returning investments such as cash and bonds.
The Green and Gold Fund has a portfolio of stocks, bonds and other securities valued at about $525,000. Students collaborate on the management of these assets and earn real-world experience analyzing and investing in the financial markets, gaining a competitive edge with firms once they graduate.
The fund has relationships with several prestigious investment firms located in Birmingham, including Harbert, Sterne Agee, Protective Life, Morgan Stanley Smith Barney, Bank of America Merrill Lynch and UBS. It has been profiled by national news media outlets including CNBC and Bloomberg Businessweek.
The students who work on the fund are a stock market anomaly. They are short-term investments considering that most are able to serve on the fund for only a few years. They are long-term returns when you consider their experience makes them a valuable commodity any smart company would want to invest in.