The student-run University of Oregon Investment Group (UOIG) at the University of Oregon's Lundquist College of Business posted an incredible 25.23 percent return on its D.A. Davidson & Co. (DADCO) portfolio. The return compares to a Dow Jones Industrial Average index of 5.39 percent and a Standard & Poor's 500 return of 12.55 percent for the same time period (August 31, 2004, to August 31, 2005). UOIG's return was also the second highest among the eighteen colleges and universities participating in the DADCO investment contest (see table below).
"UOIG gave me the chance to think outside the classroom and apply the fundamentals I learned in finance classes to manage real money and analyze stocks. Our success in the Davidson competition was an additional benefit, adding more value to an excellent educational experience," said Davidson Portfolio Manager Joseph Alcock '05.
Formed in 1998, the UOIG is composed of twenty-eight undergraduate students who manage two stock portfolios with assets of more than $600,000. UOIG's second-place finish is its highest ever since it began participating in the contest in 1999. The 25.23 percent return on its DADCO portfolio this year compares to a 12.02 percent return in 2004, when UOIG placed third.
The Davidson performance capped off an exceptionally strong year for the UOIG, whose Tall Firs portfolio took first place in the blended investment category (large- and small-cap stocks) at the Global Student Investment Strategy Symposium arranged by the University of Dayton in April. A week later, the group finished third in an equity analysis competition at New York University.
Under the D.A. Davidson Student Investment Fund program, the brokerage firm provides student teams from each school with $50,000 to invest. Returns are calculated and rebalanced each year at the end of August, and schools receive a portion of the investment returns above 5 percent. The UOIG is using the winnings it received as a donation from D.A. Davidson to help cover operating expenses.
The UOIG is a prime example of experiential learning, which is a pillar of the Lundquist College of Business' educational foundation. The college is able to offer students many experiential learning opportunities because of its manageable size.
Through their participation in the UOIG, students develop important presentation, analysis, and networking skills that better prepare them for their future careers. The business community also benefits from the skills students attain through experiential learning because UOIG graduates bring actual experience managing real dollars to their future employers.
|School Percent Return (08/31/04-08/31/05)|
|University of Oregon||25.23%|
|University of Utah||22.38%|
|Eastern Washington University||21.75%|
|University of Idaho||21.42%|
|Washington State University||20.13%|
|University of Wyoming||20.01%|
|Brigham Young University||19.29%|
|Boise State University||17.88%|
|Utah State University||14.50%|
|Montana State University-Bozeman||13.00%|
|University of Colorado-Colorado Springs||12.93%|
|Montana State University-Billings||7.19%|
|University of Montana||4.59%|
|University of Washington||0.88%|
|Student Investment Composite||14.11%|
|Benchmarks for the Same Time Period|
|Dow Jones Industrial Average*||5.39%|
*Including Reinvested Dividends