March 23, 2010
Henry Fund named best student managed stock fund for fifth straight year
For the fifth consecutive year, the University of Iowa's student-managed stock portfolio has been named the best in the country for 2009.
The Henry Fund, managed by finance students in the Tippie School of Management, placed first in the large-cap equity blend category at the national Redefining Investment Strategy Education (RISE) conference at the University of Dayton (Ohio) on Friday. The fund posted a gain of 33.6 percent in 2009, beating its benchmark S&P 500 by better than 7 percentage points.
The fund started the year with about $980,000 in assets and ended with $1.3 million. The S&P 500 gained 26.5 percent for the year. Only seven of the 49 stocks the fund held at some point through the year posted a loss.
Todd Houge, the fund's faculty advisor, said the students positioned the fund for a recovery in 2009, assuming the worst of the recession had passed. They focused heavily on materials and energy sectors, with its position in Peabody Energy up 96.3 percent, oil driller Noble Corp. rising 84 percent, and oil field services provider Schlumberger increasing 54 percent.
While the fund generally shied away from the financial sector, they found a prize in Banco Santander, a Spanish bank that posted a 73 percent return. The fund's biggest gainer was Google, which started the year at $307.65 and finished at $619.98, an increase of 101 percent.
RISE is the largest student investment education conference in the world.
Finance students and financial professionals from across the United States and around the world attended the event, which included open forum panel discussions from 75 different investment, regulatory and economic professionals. More than 200 schools competed in nine different categories.
The Henry Fund is named for the two UI benefactors who provided a portion of the initial $50,000 in capital. Henry Tippie is a 1949 UI graduate who owns several companies and has provided many gifts to the UI business school that now bears his name. Henry Royer is the former chairman and CEO of Firstar Bank in Cedar Rapids and executive vice president of Berthel Fisher & Co. of Cedar Rapids.
Income from the fund is used to support scholarships for first- and second-year MBA students, guest speakers and educational travel opportunities for students. Contributions from other supporters are welcome to increase the size of the Henry Fund. Private gifts for the fund are accepted by the UI Foundation and can be made online at http://www.GiveToIowa.org/henry. More information about the Henry Fund can be found online at http://www.henryfund.org.
STORY SOURCE: University of Iowa News Service, 300 Plaza Centre One, Iowa City, Iowa 52242-2500