Financial Markets Program - University of Minnesota

UMD’s Labovitz School of Business & Economics
The Labovitz School of Business & Economics at the University of Minnesota Duluth
established the Financial Markets Program in the fall semester of 2001. This program
selects some of the best and brightest LSBE students to participate in a rigorous 15-month
program that combines academics with real-world practicum experience. In fact, the
program’s primary objective is to provide students with experience that goes “Above and
Beyond” the classroom and textbook-oriented education.The students manage a live
portfolio known as The Bulldog Fund, LLC. Following is an explanation of the program’s
history, mission, methods and a summary of its achievements. The story behind the LSBE
Financial Markets Program’s beginnings and how its founders planned, partnered for, and
executed it in such a short time, created, in part, its first “experiential” lesson.
Program History – A University is Ready
In 2000, students involved with the
University of Minnesota Duluth (UMD)
Investment Club approached Dr. Kjell
Knudsen, Dean of the Labovitz School of
Business & Economics (LSBE),
wondering if the University would
provide them the necessary funds to
invest in a live portfolio.
“The students requested ten
thousand dollars,” stated Dean Knudsen.
“I asked, ‘Why not just do a real
program?’”
And from there, the wheels were in
motion for the school’s Financial Markets
Program, one of the first programs of its
kind to engage students with a live
portfolio on the undergraduate level.
Dean Knudsen recalls the sequence of
events that followed:
“I contacted two local bank
presidents, Mr. David Gaddie of US
Bank and Mr. Phil Rolle of Norwest
(now Wells Fargo) and they were very
willing to support the project. It is their
support that launched the program.”
Shortly thereafter, the Dean
approached UMD Chancellor Kathryn
Martin, who thought it was a “terrific
idea” and pledged her full support. A
proposal to UMD’s Board of Regents was
later presented and unanimously
approved, which is significant as the
Board was eventually designated as the
Bulldog Fund’s owner and primary
investor.
Initial investment into the fund was
$200,000. University funds were
matched by the North Star Foundation.
Subsequently, a third investor, the
Northland Foundation committed capital
to the “fund” in March, 2005.
Classes began Fall, 2001 – a
remarkable timetable in the world of
higher education.
“ This program has far
exceeded anybody’s
expectations. It has been a
spectacular success. The
performance of the fund has
been solid, but its performance
and making money are not the
goals of the program – to give
students an excellent vehicle to
learn is the goal and we’ve
achieved that.”
– DEAN KJELL KNUDSEN –
Dean Knudsen
UMD LABOVITZ SCHOOL OF BUSINESS AND ECONOMICS – FINANCIAL MARKETS PROGRAM 1