So how’s this for investment advice? Take $100,000 of real U.S. dollars and turn them over to a group of college students for safekeeping.
It might sound risky, but it worked out just fine for Erie native Vincent Intrieri, senior managing director of Icahn Capital Management and a 1984 graduate of Penn State Behrend.
After chatting last year with Hunter Holzhauer, who teaches a portfolio management class at Behrend, Intrieri gave the school $100,000 to establish the Penn State Behrend Student-Managed Fund.
Students, with some oversight from Holzhauer, used the money to purchase and manage a stock portfolio of about 50 stocks, beginning in late 2012.
Intrieri predicted in Decembers that students would make the most of the money.
“When you have real money in the investment versus a mock portfolio, there’s always more thought put into it,” he said in December.
So how well did the class perform?
About six months after the initial investment, the portfolio is worth about $112,000, with gains similar to those of the S&P 500.
“They’ve made $12,000,” Holzhauer said. “That’s a good thing.”