KU portfolio beats market, wins honor

A team of Kansas University students finished third in a recent collegiate contest that tested their financial skills.

The five-member team, representing themselves and the work of others in KU’s Applied Portfolio Management Class, presented an overview of the class’ work during 2005. The class’ stock portfolio returned 17 percent on its investments during the year, bolstering its portfolio value to $1.2 million.

The work was good enough to take third place for hybrid investments in the contest at the Redefining Investment Strategy Education Symposium, which was March 30-April 1 in Dayton, Ohio. By comparison, the S&P 500 had a return of 3 percent in 2005.

Each semester, students in the class are responsible not only for crunching numbers, studying market trends and reviewing financial strategies for a grade; they also put their expertise to work, managing a portfolio of 25 to 30 stocks. The portfolio started in 1993 with a $230,000 donation from KU alum Kent McCarthy, who runs a hedge fund in Mission and remains a class instructor.

From left, Aaron Arnett, Lindsay Phillips, Jill Seferovich and Carolyn Cornett are part of a Kansas University team that was among 41 competitors in a national portfolio competition.

Students in the class, all seniors, typically are looking to land jobs in investment banking, mutual funds or market analysis, said Catherine Shenoy, assistant professor of finance. In class, students have access to a growing list of alumni and other business experts to help them make informed decisions about money.

“We’ve had a vice president of Wal-Mart come talk to our class. The CFO of Garmin came in,” said Aaron Arnett, a senior from El Dorado and a member of the team that made the trip to Dayton. “We get a lot of good contacts to come in. It’s been a great class.” :

“You get some good, real-life experience.”

Also on the team that traveled to Dayton was current class member Carolyn Cornett, and two students from the fall semester, Jill Seferovich and Lindsay Phillips. Matt Ferguson, another team member, was unable to make the trip.

Keeping score

Students in Kansas University’s Applied Portfolio Management class do more than build wealth through their investments, which now stand at $1.2 million.
Proceeds are dispersed on campus, said Catherine Shenoy, assistant professor of finance and teacher of the course. Some portfolio proceeds support women’s athletics at KU, and also finances the APM scholarship for a men’s basketball player. This past season’s recipient was Russell Robinson. Other recipients have included Nick Collison and Kirk Hinrich.