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Business Students Show Portfolio Prowess
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MAY 12, 2004 -- Shhh. Don't tell these students that the stock market is in turmoil.
A group of Michigan Tech undergraduates, investing $750,000 in real money, managed to significantly beat the market indexes this year. The money is part of the university's endowment.
As they wrapped up their one-year stints as money managers, the students earned a 19.34 percent return over the academic year, as opposed to the 9.71 percent return on their portfolio benchmark.
The Applied Portfolio Management Program (APMP), in Michigan Tech's School of Business and Economics, not only beat the market indexes but also outperformed 95 percent of all public mutual funds last year.
Started in 1998, the APMP annually selects students to manage a portfolio of real money over the next academic year.
"The program has gotten so popular in the last six years, that we now have had to split into two teams," said Dean Johnson, associate professor of business and the team's advisor.
Each year, the portfolio team competes in the RISE Symposium, where teams demonstrate their market prowess. In the four-year history of the RISE program, the Michigan Tech team has reached the semi-finals three times, including their victory in 2002 and a third place in 2003.
Most of the RISE competitors stack their teams with MBA students, while Michigan Tech's team is all undergrad all the time.
"More schools have started to include undergraduates," Johnson said, "in part because of our success.
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