In high school, Doug Rothfeldt convinced his Miami high school to let him invest and manage $65,000 of its endowment. It should come as no surprise that Rothfeldt, now a senior, brought this financial tradition to SMU.

Last Monday, Rothfeldt, along with three fellow seniors and the student-run Boulevard Investment Group they created two years ago, donated $3,000 of realized returns to the BBA Scholars program.

“We had known about the group for some time, so we were not surprised that they donated the money. What surprised us was the amount they were able to donate, and how quickly they were able to make a donation,” said associate dean of BBA admissions, Jim Bryan. “They are clearly very talented.”

For Rothfeldt, the group was a chance to take the classroom to the business world, who simply texted a few of his friends with the idea during his sophomore year. This is the students’ first donation.

“We thought that it would be fun to design a program where we could implement what we were learning in our practicum and finance classes, teach younger students and try to make investment returns to then give back to other business school students,” Rothfeldt said.

“We wanted to do something with our time that wasn’t just studying but using what we were learning in the real world,” Co-Founder Giuliano Blei said.

The group, registered as a 501(C)(3) non-profit and not affiliated with the university, was formed as an outlet for finance-savvy students. Traditionally, business students are more restricted when they participate in the practicum class, which manages the Ann Rife Cox Endowment Fund.

“The students have complete control of the investments,” senior Matt Reyes said. “You have the freedom to experiment.”

The fund started with $50,000, accumulated through private donations, and the group hopes to continue growing the fund so that its donations can become
more substantial.

“We realized $3,000 is just a drop in the pool of how much money the BBA scholarship fund is, but the point is we’re actively seeking out tax-deductible donations so that one day it could be a $200,000 or $300,000 fund. Then our donations each year can be that more meaningful,” Rothfeldt said.

The group is made up of 15 junior analysts, usually first-year and sophomore business students and scholars, five portfolio managers, and five senior advisors.

Mentorship and networking are central to the program’s success, Rothfeldt said. The group has a five-cycle curriculum, where portfolio managers instruct the junior analysts on everything from reading financial statements and filings to presentation skills.

“We use a curriculum for each monthly research cycle, where one method of valuing a company is introduced and taught by the portfolio manager each month,” said incoming BIG president Paul Nork. “By the end of the year, each younger member should have a full set of skills that would help measurably when looking for internships in the financial sector.”

Blei said working on students’ presentation skills now prepares them for their future classes and careers.

“It’s a setting where we can make them feel uncomfortable in presentations by grilling them, but then have a laugh afterwards, something you don’t get in class,” he said.

With investments in five sectors, technology, energy, industrial, consumer and healthcare, students involved get to experience investments across the market. Each sector starts the year with $10,000 as the year continues, more successful sectors receive larger portions of the fund to invest.

“This is real money, so there is no room for incomplete analysis or mistakes… It is absolutely critical that we have complete conviction on every investment we buy,” Nork said. “Since the BIG is an effective vehicle for philanthropy, I try to make sure that our research is thorough enough that we will make profits to keep giving back at the school.”

The group has invested in companies like Questcor Pharmaceuticals, Microsoft, startup technology companies, and Anadarko Petroleum Corporation, which have all achieved positive and significant returns so far in 2014.

Moving forward, the group hopes to continue their investments and will accept another 10 to 15 junior analysts to their team in the fall.

“I challenge all students to look at the Boulevard Investment Group to see how they can follow in their footsteps,” Bryan said. “Ask yourself what you bring to the table both in and out of the classroom. How can you use your talents to make your community a better place?”