The S&P 500 is one of the most common benchmarks for the stock market. While everybody tries to beat it, few succeed. However, a group of business students did this semester, as the Summit Fund earned a 3.56% return, beating the S&P 500’s 2.6% return over the same period.

The student-run equity fund currently manages a portfolio of $730,000, which has grown significantly over the years. To determine whether to buy, sell or retain holdings, the class utilizes a committee-structured approach. Student analysts propose a buy to their peers based on their research. The group then analyzes metrics and examines a company’s standing, taking into consideration the class’s suggestions to make a final decision.

This semester, the tech company Nvidia was pitched. Despite the speculations surrounding Nvidia’s stock, the students decided to take the plunge and outweigh the technology sector compared to the S&P 500. While risky, it wasn’t without thoughtful deliberation and research, which ultimately paid off.

“There are real stakes in this. You can mess up. You can lose money,” said Suyash Bhave, senior finance major and a managing director for the Summit Fund. “We have to be prepared in every part of our research and math when we’re valuing these companies, because if we don’t, we’re responsible.”

Market fluctuations and large-scale losses can occur, and students must navigate the outcomes of their choices. The fund may fall short of its benchmark or, in this case, outperform it. Regardless of the outcome, it’s all a part of the learning experience.

The Summit Fund challenges students to use critical thinking and communication skills to make real-world decisions. Additionally, it provides them with the opportunity to take what they’re learning in class and apply it to actual concepts.

“Getting to work with real-world investments is everything. It’s what ties all the finance classes together,” said David Wise, senior finance major and a managing director for the Summit Fund. “You can run as many fake models as you want during class, but it just doesn’t compete with having the ability to go through the Bloomberg terminal and work with real investments.”

The Summit Fund’s experiential learning prepares students for success by providing experiences many don’t receive until after graduation. Hands-on analysis through the Bloomberg terminal equips students with the knowledge and experience necessary to responsibly manage investments in their future careers.

As the student fund managers build real-world experience in high-stakes investments, their work also has tangible benefits for their peers: The earnings are contributed to scholarship funding. Just this year, the fund has contributed $47,316.33 to scholarships. While the investment year isn’t over, the fund hopes to contribute a significant amount of earnings based on the success of this semester.

“The Summit Fund provides both a signature experience for tomorrow’s fund managers and a means to generate scholarship funds central to our College’s land-grant mission of expanding access to education,” said Hilla Skiba, associate finance professor and advisor of the Summit Fund.