Bridging the Gap Between Theory and Practice

The Stevens School of Business is taking its Student Managed Investment Fund (SMIF) to a new level.

After 10 years of success with the undergraduate SMIF, a graduate version began during the Spring 2025 semester. Unlike paper portfolios or simulations, GSMIF operates with actual capital from the Stevens endowment, allowing students to navigate the complexities of asset allocation and risk management in live markets.

“We created the GSMIF to bridge the gap between classroom theory and real-world investing,” said Emmanuel D. Hatzakis, Industry Professor and director of the master’s programs in finance and financial engineering. “We wanted our students to move beyond simulations, manage actual capital and make decisions with real money at stake. It’s key to our vision at Stevens. We aim to prepare finance leaders who are confident, skilled and experienced in navigating markets.”

Students enrolled in the Asset Allocation Practicum course manage the GSMIF. This newly launched School of Business course emphasizes the rigorous application of investment principles in a dynamic market environment. Students selected for this course are chosen from a large pool of applicants and vetted by a thorough application process.

Blending Experience and Enthusiasm

The inaugural class includes graduate students like Serena Shah, who played integral roles in the undergraduate SMIF. Serena served as Co-Head of Operations while pursuing her bachelor’s in business & technology and quantitative finance. She graduated in 2021, worked in risk management at RBC Capital Markets and securitized product sales at Nomura Securities. She came back to Stevens to finish her master’s degree in finance.

“Having the opportunity as a leader to build out the program for students who will be following us in 10 years is exciting,” said Serena, the graduate fund’s current Head of Discretionary Research. “Like many students, I really enjoyed my time in the undergraduate SMIF, which has built up a lot of credibility and a very good reputation. It prepared me for the full-time roles I’ve held and is truly a ticket to opening a lot of different doors. We want to recreate that on the next level in the graduate program.”

To assist in building the foundation, Hatzakis tapped Ohm Jariwala as his teaching assistant. Ohm is on track to graduate with his bachelor’s degree in quantitative finance in December 2025 and recently served as the Head of Quant for the undergraduate investment fund. Following his work with the GSMIF this semester, he will work as an investment systems intern at Vanguard.

“I think the skills that I’ve been able to translate come from organizing teams,” Ohm said. “I think that's one of the hardest things, especially when you're building something new. When I was the Head of Quant, we actually did a whole restructuring that changed our teams around. I think being adaptable, figuring out what works and what doesn't, and knowing when to flip the switch and make the change are things I am able to bring to the table. Everyone has a great energy. The SMIF has been really fast-moving, but I think that's the fun of it.“

One of the keys to the successful launch is that blend of experience with the Stevens undergraduate program and the excitement of students like Sean Mehra, who has taken on a leadership role within the GSMIF as the head of the risk management team. Sean completed his Stevens undergraduate degree in business and technology in three years and is now working on his master’s in finance through the Stevens Accelerated Master's Program.

“When I found out that the graduate school was starting its own student-managed investment fund, I was very excited to take part because I wanted that real-world experience of analyzing investments and establishing an organization that will exist long-term,” Sean said. “I thought joining the GSMIF would be a great opportunity to do that because we're building out a fund that manages a portion of the school's endowment that the university entrusts us with, allowing us to learn analytical methods used in the industry with real institutional capital.”

A Global Macro Approach

GSMIF employs a global macro strategy, meaning students analyze macroeconomic and geopolitical conditions at international and regional levels to inform investment decisions. These views translate into long and short exposures across a diversified range of asset classes, including equities, fixed income, currencies, commodities, precious metals and real estate.

“We strike a balance between educational experience and the responsibility that comes with managing real money very deliberately,” Hatzakis said. “Students have the freedom to explore and develop their investment ideas, but always within a structured framework that emphasizes risk management, governance and ethical decision-making.”

“We follow professional standards aligned with the CFA Institute’s principles, ensuring that students learn to operate with integrity, accountability and a deep sense of fiduciary duty,” he continued. “This focus on ethics and discipline helps students develop a strong foundation for their careers while protecting the integrity of the endowment. By managing actual capital under these high standards, students gain hands-on experience and cultivate the professional mindset and values essential for success in the investment industry.”

ETF-Based Implementation

Investment decisions are structured at the asset class level and executed through exchange-traded funds (ETFs), a widely adopted institutional approach that enhances liquidity, diversification and tactical positioning.

“One thing that differentiates us from the undergraduate fund is that we only invest in ETFs,” Sean explained. “Our overall portfolio is a global macro ETF portfolio. I was very excited to do this work. ETFs are something that I like to research myself, and I was very interested in learning how the industry analyzes ETFs because this is very prevalent in today's financial industry.”

Developing Industry-Ready Skills

By integrating investment theory with applied portfolio management, students gain expertise in strategic asset allocation, risk assessment and ETF selection, experiences that prepare them for careers in institutional asset management, hedge funds and investment advisory roles.

“I think one of the most rewarding parts is getting to a final decision,” Ohm said. “We know the direction we want to go and how to get there, but being able to justify it and put a presentation together and say cohesively, ‘This is why we think that this ETF is the one that we want to pick,’ is really enriching.”

This invaluable experience for students aspiring to become future leaders in global investing reflects Stevens’ commitment to bridging academic excellence with industry practice.

“There's a certain etiquette and persona — a higher level of professionalism — required on Wall Street,” Serena said. “People who really thrive in that atmosphere have a lot of conviction and confidence, whether it's about a product you're pitching or research you're doing.”

“I think that with the decision-making process of the GSMIF, that is so important,” she continued. “For example, within discretionary research, we did a breakdown of every sector at the start of the semester. It was an overview and deep dive into the state of the economy — this is what's happening, and then this is where we want to focus our investments. If we don't provide the right direction and conviction in our general sentiment moving forward, none of the other teams will get on board.”