How the Smith School Student Managed Funds Began

It was the vision of the “3Ms” to establish what became the first of the Smith School’s three student-managed funds, the Mayer Fund. We recently sat down with the trio to explore the history of the fund and how it came to be, in their own words.

When Michael Devlin, Michael Hahn, and Michael Michalisin were in the MBA program at the Robert H. Smith School of Business in the early 1990s, there was not a clear path for students to find their way from the school to prestigious financial jobs or careers on Wall Street.

The three Mikes, or “3Ms” as they have been nicknamed, set about to change this.

The start of the story brings us back to 1992. It was the year that the 3Ms started their MBA studies; it was former Dean Bill Mayer’s first year in his leadership role.  Many business school students across the country were looking for ways to enter the world of finance and find an entry into financial careers, as investment management was an increasing popular track. But as the 3Ms explained, no firms were actively recruiting Smith School students for Wall Street.

The 3Ms had a shared common vision to find a way to expand career opportunities in finance for Smith School students. They got together to brainstorm ideas to promote change and figure out an innovative tool to help Smith School students open more doors in this field, and obtain positions that had eluded so many students before them.

The trio determined that what Smith School students lacked was relevant experience, as this is what employers sought when tapping fresh MBA candidates into their first jobs. So why not, they mused, start an investment fund at the school that students could directly manage?

There were many phone calls and many letters sent; there are memories of a substantial amount of work taking place during a holiday break. At the time, there wasn’t much (if any!) information about how to establish and launch a student-managed fund. It was up to the trio to research as best they could (in the days before the internet was readily accessible) and figure out how to achieve their goal successfully. The establishment of the first fund was truly part investment management, and part entrepreneurship.

Importantly, there was a crucial pitch deck and presentation that was used in a key meeting with Dean Mayer. It was at this meeting that the Dean agreed to be the sponsor of the initial fund and pledged $250,000 for its launch. Once the initial meeting took place and the green light was given, things started to happen quickly. The Mayer Fund was officially founded in 1993.

The 3Ms even remember some of the stock recommendations that were part of the pitch deck for the Mayer Fund: Bob Evans (restaurant chain), Seaboard Corporation (food industry), Bush Industries (ready-to-assemble furniture), and General Mills to name a few. The trio explained they were fully on their own to set the foundation of the fund so future generations of students could build, grow, and evolve it over time.

The 3Ms fully invested the fund during their time at the Smith School, in thirteen names. They also earned academic credit for their efforts in putting together the envisioned curriculum for what the fund would include. And it is clear talking to the 3Ms today that it certainly wasn’t the expectation for the Mayer Fund and its mission would be so successful that two additional funds would launch in the years to come (the Senbet Portfolio in 2006, and the Global Equity Portfolio in 2009).

What has transpired over the years is that the three Smith School funds have become an important part of the student curriculum and overall experience for many students. The funds allow students to gain real-world experience by applying classroom concepts to investment management; the funds are a “real-world case study baked into the curriculum”, as described by the 3Ms.

The funds also allow students to make mistakes – and importantly to learn from these mistakes – in a safe environment. And for the students who manage the funds at the Smith School today, their involvement is a true differentiator and provides a leg up in their job hunt.

The lessons that the 3Ms want to pass down to future generations of Smith School students are many. There is one piece of advice from the group that stood out from the others: don’t hesitate to reach out to more seasoned professionals to connect with and learn from them. During the launch of the Mayer Fund, the trio actively participated in cold calling as they sought input and advice to ensure a successful launch. Their takeaway from this experience: professionals who can be a future employer appreciate students who have the confidence and take the initiative to reach out make a connection.

When the 3Ms graduated in 1994 and moved on to their new careers, the fund was in its infancy and not widely understood by the other students. But over the years, the Mayer Fund grew both in size and reputation and spawned two additional funds. Today, Smith School students are actively recruited into finance positions and have a world of opportunities open to them, thanks to their involvement in the funds.

On behalf of every stakeholder of the Smith School, we thank Michael Devlin, Michael Hahn, and Michael Michalisin for their vision, their initiative, and for making great things happen at the school. And we also thank former Dean Mayer for seeing the value of this proposition and giving it a chance to move forward.

Mike Devlin

Mike Devlin is a Venture Partner at Aidenlair Capital, a Silicon Valley based venture capital firm. His time in the investment industry has focused on advising ultra-high-net-worth individuals and family offices. Earlier in his career, Devlin was Head of Client Advisory at Integra Global Advisors, serving families and charitable institutions. He also worked as a Director at a trio of firms: Ceres Partners, Spruce Private Investors, and BNP Paribas. He started his career as a Vice President at Lehman Brothers.

Mike Hahn

Mike Hahn is the Senior Credit Officer for EQT Exeter Real Estate, a large global Private Equity Firm based in Sweden. Earlier, Hahn spent three years at the Pennsylvania State University teaching graduate student classes in Securities Selection, Portfolio Management, and Financial Modeling. He also spent twenty years in investment roles that included portfolio manager, analyst, and trader at Bryn Mawr Capital, a market-neutral hedge fund. Previous roles include portfolio management at Merrill Lynch Investment Managers, and growth equity shop Pilgrim Baxter & Associates.  Mike began his investment career working in Fixed-Income at First Maryland Bancorp.