By managing large amounts of other people’s money, members of a University student group are gaining valuable experience navigating the financial industry.
The University of Oregon Investment Group placed second in a national contest this summer and traveled to New York City to learn about the financial industry from Wall Street executives.
The Davidson Student Investment Program, sponsored by the brokerage firm D.A. Davidson & Co., put the group in competition with similar groups at 17 other universities. The group received a $5,000 bonus for getting the second-highest return on a $50,000 investment.
According to the group’s Web site (uoig.uoregon.edu), a few students started the group in 1998. In 1999, the group was accepted by D.A. Davidson & Co. to manage a $50,000 portfolio; in 2001, four Lundquist College of Business alumni and the University of Oregon Foundation gave the group a $500,000 portfolio to manage.
The group now manages $650,000, plus a $100,000 donation from Howard Svigals, a University alumnus who is the retired chief financial officer of Verizon International.
Justin Buell, the investment group’s director of human resources, said the group’s investments have been posting larger returns than what major mutual funds would predict.
“I think we credit it a lot to the process that we use, how we vote as a group,” Buell said.
In this process, a group member gives a company presentation, including a written report approximately 15 pages long, and the group then votes on whether to buy, hold or sell shares of the company’s stock.
“The actual generation of a report can take up to 40 hours,” senior business administration and economics major Bernie Fox said, adding that usually members write one report per term.
Members of the group all have specific roles. There are three directors, three portfolio managers, and a number of sector leaders, equity analysts and analysts. Members must apply and be interviewed to advance from the entry-level analyst position, just as at a real business.
Some members say the group has impacted their personal investments as well as their career paths.
“Several of us follow the investment group’s portfolio,” said Leah Carter, the group’s director of operations.
Carter, a senior majoring in business administration, said she began investing her own money after she received cash for Christmas one year.
“Rather than spend my money, I decided to invest so I’d have more money to spend later,” Carter said.
For students interested in starting their own investment portfolios, Carter recommended the services of stock broker Scottrade (www.scottrade.com). Opening an account with Scottrade requires a minimum investment of $500. A Eugene branch is located in Suite 104, 2350 Oakmont Way, near the Oakway Center.
People who want to invest in the stock market should know that they risk losing money and should decide how much risk they are comfortable with, Buell said.
Buell said young investors have the opportunity to be more aggressive than older investors because their years of peak earning are still ahead of them.
However, some group members say aggressive strategies are not required for young investors.
“I plan on being in the stocks that I buy on a long-term basis,” Carter said. “I don’t day-trade.”
Carter added that she reviews all of her stocks on a monthly basis to decide whether to increase or decrease the number of shares she holds.
Buell said one of his investments has increased in value by 97 percent since he bought it earlier this year. Another stock increased by 105 percent and a third by 55 percent.
“A lot of them I picked from things I heard in the investment group,” Buell said. “Those are very unusual, exciting results. That’s definitely not the norm.”
He added that being in the investment group helps him make investment decisions he can feel confident about.
Buell, a senior majoring in finance, will graduate after this term. In January, he will become the vice president for private client services at MKG Financial Group.
“This group helped a lot in that process for sure, for me,” Buell said.
Currently the group has 15 members, and Buell said it is seeking to replace 14 longtime members who graduated this spring.
The admission process is competitive, and Buell said weekly meetings at 8 a.m. Fridays help weed out those who are more interested in going on trips than in serious work. Students of all majors are welcome to apply.
An informational meeting will be held Thursday at 6 p.m. in 132 Lillis.

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