Two Decades, One Team: The LSU Tiger Fund’s Impact on Student Success & Returns

BATON ROUGE - Twenty years ago, the LSU E. J. Ourso College of Business and LSU Foundation teamed up to transform the learning experience for students seeking careers in asset management. In February 2005, $500,000 from the university’s endowment was designated for creating a student-managed investment fund aptly named the Tiger Fund. The fund’s goals are simple: outperform the benchmark and create an environment where students can learn about portfolio management, stock selection and equity research.

Thanks to promising early results, the LSU Foundation released another $500,000 to the student-managed fund in February 2009, during the height of the financial crisis. Letitia (Tish) O’Connor, senior instructor in the LSU Department of Finance, clearly remembers the conversation in December 2008 when LSU Foundation leadership shared that they would like to increase the allocation for the Tiger Fund.

“I remember asking, ‘Are you sure? Do you really want us to have another $500,000?’ That’s when I learned that our students were outperforming other fund managers at the time. They had confidence in us, and that means a lot.”

That well-earned confidence is not something O’Connor and the student managers take lightly. “Students understand that they are being allowed to manage this money and that they are fiduciaries of the LSU Foundation. Something is riding on their decisions.”

As part of the LSU endowment, the Tiger Fund helps provide stable, predictable funding in perpetuity. Endowments are managed to maintain the purchasing power of the gift, providing multigenerational support.

Valued at $8.5 million, as of March 6, the fund’s success can be measured in more than just financial returns. Since its inception, roughly 650 student managers have left their mark. Selected through a competitive application process, student managers enroll in FIN 3845, where they are assigned to research various industry sectors. Managers spend time on independent research before coming together to share knowledge, discuss recommendations and ask critical questions of their peers. While guardrails are in place, including oversight from an advisory board, all decisions are made by the student managers. This experience pays big dividends.

“Being an analyst and then portfolio manager in SMIF profoundly impacted my career,” said Jonathan Murdock, CFP, CPWA (BS Finance ’08, MS Finance ’10). “It led to my first job with the LSU Foundation and, more importantly, built my confidence to present ideas with conviction. Making trade decisions required clear articulation of my assessments. As you move from supporting a team to leading one, confidence in your direction—even if you might be wrong—is a skill you can’t learn from a textbook.” Murdock worked on the fund for a record five semesters while earning his degrees. 

“Students leverage their research into particular industries and companies in their interviews. They tell me that the Tiger Fund helped them secure their jobs,” said O’Connor. “Many former managers are still very invested in the fund’s performance. They remember which companies they put in the fund, sometimes with pride and sometimes with an apology. It’s all part of the learning process.”

A critical resource supporting Tiger Fund managers is the Securities Markets Analysis Research and Trading (SMART) Lab. Bloomberg terminals and other technology in the SMART Lab are the Tiger Fund’s backbone, allowing students to conduct the research necessary to inform their decisions. The lab, launched in 2002 with funding from the Louisiana State Legislature, continues to thrive thanks to the generosity of private donors. It is another example of how collaboration enhances student learning and professional development.

This commitment to teamwork and experiential learning has drawn students like Cristina Hethmon, a senior finance major from Collierville, Tenn., to the Tiger Fund. For Hethmon, managing the fund is an opportunity to move closer to her career goal of becoming a financial advisor and a Certified Financial Planner.

“I have a lot of interest in being able to dive deep and do research while trying to allocate a portfolio,” said Hethmon, whose focus is on the consumer discretionary, consumer staples, and healthcare sectors. “With 67 companies, it’s a lot of work and research. You start to see overlaps as you examine how one company is doing versus another and why that’s happening.”

Hethmon shares that one of her favorite aspects of finance is exploring complex topics to grasp the market's reactions. By “going down rabbit holes,”  she can analyze the factors behind certain strategic decisions and actions, helping her understand how these factors will impact corporations in the market.

“The Tiger Fund experience is helping me think analytically but also understand other people’s perspectives,” said Hethmon. “There are 15 of us in the class, each with a different perspective on what’s happening around us and how we think the world will react. So being able to talk it out and try to understand where others are coming from will help a lot in my career.”

As the Tiger Fund continues to grow, those involved remain optimistic about its future. O’Connor predicts a bright outlook for the program, one built on the foundation of teamwork and dedication that has sustained it for the past two decades.

Rob Stuart, president & CEO of the LSU Foundation, shares a similar view. “The Student Managed Investment Fund has been a unique and valued way for us to partner in providing hundreds of students with real-world financial experience. This hands-on learning is further enhanced by the SMART Lab, another donor-supported resource that elevates their education. Year after year, these students demonstrate expert skill in managing the fund, reflecting both the excellence of LSU students and the vital role of donors who invest in their success.”

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About the E. J. Ourso College of Business

Since its establishment in 1928, the E. J. Ourso College of Business has served as the flagship business college of Louisiana, playing an essential role in uplifting the economy of the state and the well-being of its citizens. Each year, the college graduates more than 1,000 exceptional students who are the business leaders and entrepreneurs of the future.

We are committed to delivering a superior academic and professional learning experience that prepares future business leaders for lifetime success. In support of the university and college’s mission, our dedicated faculty engage in cutting-edge, innovative research that directly and positively impacts the business community, both locally and abroad. The value of a business education from the E. J. Ourso College is readily seen in the success of our alumni and their continued support of the college throughout their professional careers.

About the LSU Department of Finance

The Department of Finance within the LSU E. J. Ourso College of Business offers high-quality curricula to undergraduate and graduate students interested in careers in corporate finance, asset management, real estate, insurance, banking, financial planning, and business law. Students receive invaluable hands-on experience in the fast-paced world of global finance through innovative tools and resources such as the Securities Markets Analysis Research and Trading (SMART) Lab, a simulated trading floor where students use the latest analytics software to advise the LSU Foundation on investment strategies. 

About the LSU Foundation

The LSU Foundation cultivates and invests in philanthropic partnerships to advance LSU’s academic priorities. Donors’ generosity builds teams that win in Louisiana, for the world.