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.”
“The goal is to do well relative to our benchmark,” says Mr. Eades of Victoria, BC. “We’re looking for a consistent pattern, where the portfolio we’ve built is strong, diversified, and can withstand shocks.”
Weathering a recent shaky market while the portfolio stayed strong and stable, he says, makes the results more satisfying.
Mr. Hierlihy says it is pretty astounding to see the gains they’ve made in the last two years alone. “We’ve been averaging 12 per cent per year, above the typical TSX benchmark average of between seven to 10 per cent.”
FROM IMAGINARY FUND TO REAL PORTFOLIO
Xaverian Capital originated with a group of students who were already studying markets. The Schwartz Investment Society, at the time, traded on an imaginary portfolio, and its members felt ready for more. They wanted a student-run fund management group inside the Schwartz School that invested in actual securities.
Dr. Hynes remembers when the idea arrived at his door. He suggested the students put together a professional proposal for the investment committee of the StFX Board of Governors.
It was a lengthy process. The students had to show how the funds would be safeguarded and how the group would continue after its founding members graduated. When Dr. Hynes was satisfied, he gave the students the greenlight to take the proposal to the board. It was approved in February 2020.
The board set restrictions. The students could only trade equity securities listed on the TSX, in companies above a certain market value. “It gave the students a learning experience without the scope being too broad,” says Dr. Hynes.
The group reports to an advisory committee that includes the dean or designate, faculty from inside and outside the Schwartz School, and the university's vice-president of finance and administration. BMO Nesbitt Burns executes the trading on behalf of the students.
MAKING THE PITCH
Behind Xaverian Capital’s success is a process that starts when a student stands up with a single pitch. The pitch has to be backed by numbers and analysis, survive questioning, and win over at least 70 per cent of the group before the fund will move on it. Mr. Eades tells younger members it is likely to be one of the most challenging presentations they will deliver in university. It taught him how to research, how to tell a story with confidence, and how to become the person in the room with real expertise in the area.
Mr. Hierlihy says the standard rises every year.
“It’s a tremendous opportunity for students to better prepare themselves for careers in financial markets,” Dr. Hynes says. “It reinforces what they’re learning in the classroom, but gives them the confidence that they are ready for these opportunities.”
The experience is equivalent to an internship, he says. The students are managing real money and they’ve taken that seriously. “Those organizations that are recruiting for jobs in finance know that these students have real life experience.”
Mr. Eades says what surprised him most is how much he had to learn. They meet twice a week and do work on top of that. He says you’re expected to come to meetings fully prepared. “You have to hold yourself to certain standards.”
Mr. Hierlihy says they have access to past data and can see who pitched certain stocks and how they’re performing. “It’s cool to see the impact of decisions.”
INSIDE XAVERIAN CAPITAL
Xaverian Capital consists of 30 members: the two co-presidents, three vice-presidents, and nine portfolio managers who each run a sector, such as energy, mining or commercial companies, across 35 portfolio companies. They mentor teams of analysts and economists.
Members typically put in five to 10 hours a week, plus two weekly meetings where everyone is expected to arrive fully prepared.
Joining is competitive. This year, 70 applicants applied for 15 open positions. Over the summer, members take part in a training program, and during the transition period, the outgoing class mentors the incoming one.
That continuity has impressed Dr. Hynes. Because most executive members are seniors, the group turns over every year. In six years, there have been six different executives, and the fund has run without disruption.
“That’s not easy to maintain,” he says. He credits the students with improving the organization’s structure as much as the portfolio.
Both co-presidents joined in second year. Mr. Eades had heard from his older brother Matthias, a former member, what an opportunity it was. Mr. Hierlihy had always been interested in investing. Both now have jobs lined up in investment banking: Mr. Hierlihy at Scotiabank in Toronto, Mr. Eades at Peters & Co. in Calgary.
ALUMNI ARE PART OF THE PICTURE
“Beyond all the tangible skills you develop, another important aspect is the benefits of networking with StFX alumni. One of the biggest advantages is the network and the help students receive,” Mr. Hierlihy says. “There is a huge culture of giving back.”
For instance, each November, about 10 Xaverian Capital students travel to Toronto to meet with members of banks and financial institutions. Many are StFX alumni. The intent is to make connections and to learn about jobs and opportunities. In February, a similar experience takes place in Halifax.
This year, working with StFX Alumni Affairs, the society will host a Bay Street alumni event on Nov. 12.
While members are building a bridge to the broader alumni base, they’re also mentoring younger students. “We want our students to do well,” Mr. Eades says, “to get jobs, to perform well at pitch competitions, and for people to grow.” “The biggest thing is to see people succeed, in part, because of what they learned in Xaverian Capital,” Mr. Hierlihy says.
A ROOM BUILT FOR IT
The Jonathan Deitcher Financial Trading Room on the first floor of the Schwartz School has been a game changer, they say. The state-of-the-art simulated trading room opened in November 2015 after over $1 million was raised in endowments, with significant support from Mr. Deitcher, an executive with BMO, who passed away on July 31, 2026, leaving a legacy not only in the Canadian financial sector, but also at StFX.
The Jonathan Deitcher Financial Trading Room gives students hands-on experience with real-world market data, corporate financial reports, and professional trading technology. Students have the same market data a professional trader sees. Dr. Hynes says together with Xaverian Capital, it has made the finance stream far more attractive to students.
“The addition of the trading room has been huge,” agrees Mr. Eades. “It's where we build views that ultimately influence how we use capital."
StFX was the first primarily undergraduate university in Atlantic Canada to manage real money.
Mr. Eades calls the fund a responsibility the school has entrusted to students. “You feel a sense of stewardship.” Mr. Hierlihy says there is a purpose to it. The returns help fund scholarships and research, “so students are helping students, and it is a legacy we’re proud to be a part of.”
