OCOB Ann Rep 07-08 - Orfalea College of Business - Cal Poly San ...

ACADEMICSBetter job opportunities andhigher salaries await studentswho pass series of CFA examsFor over three decades, the CharteredFinancial Analyst (CFA) Institute hasoffered an international professionalcertification to financial analysts whocomplete a series of three exams.A candidate must have abachelor’s degree or be in the finalyear of his/her bachelor’s degreeprogram or have at least four yearsof professional work experience inorder to take the exams. Candidatesmust pass all three in order tobecome CFA Charterholders andagree to comply with the strict CFAcode of ethics.The pay-offs to passing the CFAexam include better employmentopportunities, higher starting salaries,and a more rewarding career asFinance students rise to the CFA challengea finance professional. The CFACharterholders typically assume toppositions as investment professionalsor become CFOs of corporations andprivate firms. It is for these reasonsthat the CFA designation is consideredby many to be the “gold standard”for finance professionals and aviable alternative to an MBA degree.For those finishing their bachelordegrees, the Level 1 exam representsthe most challenging obstacleto overcome. The June 5, 2008edition of The Economist reportedthat 175,000 candidates took theLevel 1 exam last June with a passrate of less than 35 percent. SeventeenOrfalea College of Businessfinance seniors, advised by FinanceArea Chair Cyrus Ramezani, wereamong those who attempted theexam. The pass rate among thisgroup of seniors was 65 percent,nearly double the overall pass rate.All students who passed the examare now successfully employed.Ramezani said, “We are proudof all Cal Poly students who rose tothis challenge. Our six students whofailed this round still placed in thetop 10 percent of those who did notpass the June exam. This means theymissed fewer than 10 questions on atest with 240 questions! I’m sure theycan overcome this hurdle next time.“We hadn’t been tracking ourstudents’ success on the CFA examin the past, but when MattsonFernandez (Finance ’07) successfullypassed the Level 1 exam on hisfirst try and was hired by MerrillLynch, we realized that we shouldmake the CFA a formal program atthe Orfalea College of Business,”stated Ramezani. “After extensivediscussions with students andfinance faculty, we formed a CFASEE CFA, NEXT PAGESMPP CONTINUED“Phillip Cohl, who has beenmanaging funds for over 42 years, isalso a long-term investor, but heonly selects companies that haveincreased their dividends over thepast 10 years. Despite his simpleselection criteria, Mr. Cohl alsodevotes a significant amount of timeto researching target companiesbefore investing in them. We werefortunate that Mr. Cohl attendedmost class sessions during the yearand shared his perspectives on themarkets and our investment decisions.“The SMPP also was graced by avisited from Chris Monroe, a hedgefund trader who manages over 200positions with total assets valuedexceeding $500 million. Mr. Monroegave the SMPP a look into ‘a day inthe life of a trader’ and shared hisviews on how to choose the besttime to execute trades.”The SMPP had fully transitionedinto its new investment positionlast June before the term ended andthe participating seniors graduated.The fund has outperformed itsbenchmark over this period.Representatives from the SMPPreported on the fund’s transitionand its performance to the Cal PolyCorporation’s Investment Committeeduring the spring term.“We are lucky to be granted theopportunity to manage part of theUniversity’s endowment funds. Thishas been a win-win situation for theentire university community,” saidProfessor Ramezani. “The businessfaculty and students are grateful forthis opportunity, and we particularlywish to thank Ron Weaver of theCal Poly Corporation for his supportof this educational opportunity sincethe SMPP’s inception.”What is planned for 2008-09?The incoming students will have toassess the fund’s positions, continueto develop strong relationshipswithin the industry, complete unfinishedprojects and create an advisoryboard comprised of industry professionals.The SMPP students will completethe course Web site showcasingthe students, their research andthe performance of the fund. Thestudents plan to showcase theirOrfalea College of Business financetraining by participating in nationwidestudent-managed portfoliocompetitions and by inviting investmentbanks and money managers torecruit our graduates.For further information regardingthe Student Managed PortfolioProject, please contact CyrusRamezani at cramezan@calpoly.edu.ORFALEA COLLEGE OF BUSINESS ❚ 31