Virginia Tech's $5 Million 'SEED' Scores With Brazilian Stocks

While most college students are just starting to get back into the rigorous swing of school, not all undergrads took a mental vacation. Members of SEED (Student-managed Endowment for Educational Development) at Virginia Tech have been keeping a watchful eye on the markets. After all, they're responsible for managing $5.2 million of the school's endowment.

Here's how Virginia Tech's student stock fund managers have tapped emerging markets such as Brazil to beat the S&P 500 .

SEED Quick Facts

• Established: 1991
• Current Membership: 25
• Basic Membership Process: Very selective, rigorous application process
• Money Under Management: $5.2 Million (1% of Virginia Tech's Endowment)
• Portfolio/Fund Set-Up: One portfolio split into sector groups
• Benchmark: S&P 500 Index
• Time-Horizon/Style: Long-term, growth

Since its inception in 1991, SEED has taken a two-tiered approach to educating the cream of Virginia Tech's business crop. The group emphasizes beating the S&P, as well as acting as a conduit to get top-notch jobs for its members.

That might sound like other college-based investment groups, but senior Tim Ahearn, one of SEED's co-CEOs, explains what makes this one different: "A lot of other [student-run] funds have to bring their investment decisions to the endowment where they have advisors who keep a pretty tight watch on them. One way where we stand apart is that we pretty much run this fund [on our own]."

Unlike at many schools, SEED members don't receive any college credits for participating in the fund. In fact, Ahearn suggests that they are one of the largest funds out there where students don't receive compensation in the form of college credit. Instead, students are drawn to SEED for real money management experience and the promise of networking opportunities with the group's alumni.

Senior Seth Berman, the group's other co-CEO, explains, "We have a really strong alumni network that helps kids get placed in entry level [investment industry] jobs that a lot of kids don't know about at Virginia Tech. We're not heavily recruited by a lot of investment banks down here, so SEED is unique because it offers students exposure to these opportunities."

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