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University of Iowa News Release

 

March 31, 2009

Henry Fund wins stock portfolio competition again

For the fourth consecutive year the Tippie College of Business' Henry Fund student investment portfolio was named best in its class at a national conference last weekend.

"It is remarkable to win the competition in such a negative market in spite of the fund remaining nearly 100 percent invested in stocks throughout all of last year," said Todd Houge, assistant professor of finance in the University of Iowa's Tippie College of Business and faculty advisor to the Henry Fund.

Houge describes the fund's investment philosophy and some of its winning stocks here: http://tippie.uiowa.edu/news/media/Houge-Henry%20Fund.m4v.

The fund, managed by students in the Tippie MBA finance program, won first place in the large-cap growth fund at the Redefining Investment Strategy Education (RISE) conference, sponsored by the University of Dayton. The fund posted a risk-adjusted return of -.6 percent, which meant that the portfolio fared just .6 percent poorer than the S&P 500 Index.

The Henry Fund has won its class ever year since it started entering the competition in 2005.

Houge said the experience of investing in such a vicious market has re-shaped in many ways how the students perceive market risk.

"Witnessing firsthand such a severe economic and market downturn over the last year has definitely influenced our perception of risk and the market in general," he said. "I believe our analysts have become more critical of historical performance and caused them to look with greater scrutiny at corporate financial statements. In general, students are more attuned to economic data than ever before, because the health of the global economy directly impacts the strength of the job market."

RISE is the largest student investment education conference in the world. Approximately 1,700 students and 500 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.

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.

MEDIA CONTACT: Tom Snee, 319-384-0010 (office), 319-541-8434 (cell), tom-snee@uiowa.edu