M.A. Wright Fund Overview

Real money. Real objectives. Real rewards.

Despite a volatile and challenging stock market, the Jones Graduate School of Business' student-run M.A. Wright Fund continues to generate impressive returns, outperforming its benchmark by 8.05% in 2010 and by more than 30% over the past 10 years. Comprised of students selected through a rigorous application and interview process, the Fund provides Rice MBA students with a hands-on opportunity to learn, develop, and apply effective stock analysis and portfolio management risk and return techniques.

The Fund's consistent outperformance in the past few years has supported $10,000 annually in scholarships. Additionally, the Wright Fund was 2010 Best Return for a Student-Managed Growth Fund at two investment conferences: QGAME in New Haven, CT and RISE in Dayton, OH.

In 2011, a team of Wright Fund students won the CFA Institute's Research Challenge (IRC) - Texas Region and advanced to the Americas Semi-Finals. At the Texas competition, the Wright Fund team's presentation was judged superior to three other finalist teams from an original field of 13 universities. The IRC is based on a combination of written stock research reports and oral presentations. Wright Fund students have also excelled in other competitions; please see the listing of Awards and Accolades below. The Wright Fund curriculum is designed for students with a sincere interest in the markets who hope to pursue a career in securities research or investment management. The Fund is a two-semester commitment, with half of the approximately 25 enrolled students rolling off each semester to provide for continuity of the Fund. In the first semester, students perform intensive research and analysis of individual stocks, making transaction recommendations for the entire Fund's consideration. Second semester Wright Fund members serve as 'portfolio managers' responsible for the allocation, strategy, and risk-return management of one or two equity sectors. Three of the second semester students serve as elected officers to manage the fund under the guidance of Jill Foote, CFA, Ph.D., Director of the Fund, jfoote@rice.edu. The officers for the 2010-2011 school year are:

Each semester, first-year students are invited to apply and interview for 12 to 14 positions. During the selection process, candidates research and analyze a publicly traded company and make a buy, hold, or sell recommendation. Candidates are encouraged to use Bloomberg, published research reports, individual analysis, and other resources to determine their final recommendations.

The Wright Fund's home base for investment analysis and performance monitoring is the El Paso Corporation Finance Center, which provides students with access to state-of-the-art research resources and analytical software. Students get hands-on experience using extensive data sources and powerful analytical tools such as Bloomberg, Capital IQ, FactSet, and @Risk. Using these resources, along with a number of student-developed tools, Wright Fund students conduct extensive industry-wide and company-specific fundamental research, value companies using multiple state-of-the-art methodologies, and construct optimized sector portfolios based on sophisticated risk and return analysis.

The Fund runs a diversified balanced portfolio with 30 to 50 stocks and a few fixed income assets. Guest speakers from local investment firms regularly visit the class and offer strategic insights and professional experiences. The Fund is also frequently host to conferences, most recently the 8^th annual Texas Investment Portfolio Symposium (TIPS) on February 19, 2011. The Wright Fund previously hosted the 2004 (inaugural), 2005, and 2009 TIPS conferences and also served as host of the Houston Hedge Fund Conference in 2007 and 2008.

The Fund also has ongoing interactions with members of its Oversight Board, which is comprised of senior local investment professionals. Many fund members get actively involved in the CFA Society of Houston.

The M. A. Wright Fund was established in 1995 with a generous gift from the family of Myron "Mike" A. Wright, the former President of Exxon (now ExxonMobil). Mr. Wright was also one of the original founders of the Council of Overseers for the Jones School.

For Jesse H. Jones Graduate School students, the Wright Fund offers the opportunity to make real decisions.

(L-R) Nolan Waugh, Jeff Montgomery, Edward Rowe, and Evan Bertrand (all class of 2011)

Natalie Higdem '11 in the El Paso Finance Center

• The fund was crowned Best 2010 Growth Return at two student investment conferences, RISE and QGAME
• Wright Fund students won the CFA Institute’s Investment Research Challenge–Texas at the 2011 Texas Investment Portfolio Symposium held at the Jones School, and advanced to the Americas Semi-Finals
• Wright Fund students won the inaugural IRC–TX in 2007 and were finalists in 2009
• Wright Fund teams have also excelled in the TIPS Portfolio Managers Competition, winning in 2009 and placing in each of the last five years
• The Rice MBA is typically ranked among the top ten globally in finance by the Financial Times