StFX student-run fund Xaverian Capital doubles to more than $1 million in six years

Six years ago, a group of StFX Gerald Schwartz School of Business students proposed the university hire them to invest and professionally manage real money--a portion of the university's endowment funds. Now, the $500,000 fund they started with is worth in excess of $1 million. This represents a healthy 12 per cent annualized return since inception. In the summer and fall of 2020, StFX transferred two $250,000 installments from its endowment fund to Xaverian Capital, a student-managed investment fund. That $500,000 has more than doubled in six years. The money primarily helps fund student scholarships and research.  “The results are impressive,” says Dr. Tim Hynes, who was dean of the Schwartz School, when students approached with the idea. “Our students have proven themselves, and it's clear that the university made a good decision.” He says the university determined two things. “This was a terrific experiential learning opportunity, and they recognized our students were more than capable of undertaking such a real-life task.” “Tons of credit goes to everyone over the years who put in the work, and the ambition to get it started,” says Paul Eades, this year’s Xaverian Capital co-president with fellow fourth year finance student Isaac Hierlihy.  The approach is consistent, says Mr. Hierlihy, of Quispamsis, NB. Xaverian Capital invests only in TSX-listed companies above a certain market value, looking for quality Canadian companies positioned for long-term growth. “There’s a whole canvas of reasons we’ve done well,” he says. “We try to choose fundamentally very strong companies that are not going anywhere and are positioned for success in the next three to five years.”