Category: Student Organizations

No Longer ‘Broke and Hungry’

Front left moving clockwise: Heath Johnson, James Sturos (Treasurer), Daniel Olson, Derek Menard (Secretary), Brett Ludwig (President), and Cory Sullivan pose with Shelly Larson and Dan Dalquist, Edward Jones advisors

On Wednesday, April 9th, The Michigan Tech Finance Club hosted their second event of “Broke and Hungry?”.  53 students attended the event, lured by the promise of knowledge and pizza.  This year, local Edward Jones advisors Dan Dalquist and Shelly Larson took the time to talk to students about investing their money.  The main topic for discussion was the transition from college life to getting that first job, as well as the importance of saving for retirement.  Dalquist preached to students from all majors about technical financial topics such as tax savings, retirement plans, and asset securities.  Presenting some scary statistics about the current financial situation of most Americans, Dalquist and Larson appealed to audience members about the merits of getting their finances in order.  Since Tech students are numbers-driven, students were able to clearly see the drawbacks of waiting to save for retirement.  Ensuing the presentation was a barrage of questions.  Students were very interested in both advisors’ opinions of the future states of the market, social security, inflation, and how Edward Jones operates.  Even after the session concluded, both advisors spoke with many students one-on-one to answer specific questions.

Brett Ludwig, President of the Finance Club, talked to a few of the students in order to gauge their reactions to the presentation.  Overall, everyone seemed to enjoy the event and got a lot out of it.  One student, who is going to work for a company in Texas after graduation commented, “I’m looking at all this right now and this is exactly what I needed to know.”  The event was a hit and the Finance Club hopes to be able to host more events of this nature in the future for students.  A huge thank you goes to Dan Dalquist and Shelly Larson for making this one possible.

On behalf of the Finance Club, we hope you don’t wait until you’re broke and hungry to join us for the next event!

**This article was written by Brett Ludwig, with contributions from Emanuel Oliveira and Laura Bucci.

LSGI Stock Competition

Joe Dancy (’76), manager of the LSGI Venture Fund, graciously funded the first LSGI Stock Competition at Michigan Tech’s School of Business and Economics (SBE).  Dancy a long-time supporter of Michigan Tech, was recently selected as a member of the SBE Dean’s Advisory Council.  He believes a finance education is important to any student’s future, regardless of his/her major.

Accordingly, Dancy donated $1,000 in prize money for a portfolio competition held in the Investment Analysis (FIN 4000) course taught by Dr. Dean Johnson.  The course provides an overview of financial products, while discussing the operations of the stock market and bond market.  It also delves into portfolio theory, as well as basic stock and bond valuation techniques.  Students in this class are encouraged to participate in national stock contests.

Most stock contests select winners based solely on the portfolio with the highest return.  This approach unfortunately encourages risk-seeking behavior, which has the potential to send the wrong message to students.  Instead, Johnson was able to tie the stock competition to the instruction in his Investment Analysis course.   At the beginning of the term, students constructed their portfolios from stocks across all sectors in the economy.  After learning the risk-return concept and the mean-variance framework, each student calculated the risk-return measures for their portfolio just like a real world fund.  These risk-return measures include the portfolio’s return, standard deviation, Sharpe Ratio, Treynor Measure, Alpha, Beta, R-Squared, M-Squared, T-Squared and Information Ratio. “The competition was not only a significant experience,” remarked student Caihang Li, “but also encouraged me to better myself.”

In the end, three students, Li, Spenser Eller, and Heath Johnson, came out on top based on their portfolio’s risk-adjusted returns.  For example, Eller was able to turn a hypothetical $100,000 into $108,834 in eleven weeks versus $101,435 for an investment in the S&P 500 Index.  More importantly, his portfolio’s Sharpe Ratio was five times higher than the S&P 500’s Sharpe Ratio!  Eller expressed immense gratitude for Dancy’s contribution that made this possible, stating “The money will be put to good use, and the experience that I have gained will be invaluable.”

The SBE, Johnson and the FIN 4000 students would like to thank Mr. Dancy and the LSGI Fund for their continued support in our students’ financial education.

APMP Scores Big… Twice!

The Applied Portfolio Management Program is one of the most unique student organizations on campus.  Every year, two teams each comprised of six students are selected to create stock market portfolios using $1.3 million of real money.  These students have the opportunity to use one of two Bloomberg Terminals in the Upper Peninsula, right in their very own LSGI Trading Lab.

Senior APMP team member, Mason McGrew, utilizes the Bloomberg Terminal in the School of Business and Economics

APMP has always been considered successful, but 2013 was a banner year for the team.  Director Dean Johnson described a return of 29.66%, with a standard deviation (aka risk) of around 1.7%.  Senior Brett Ludwig reminisced about the teams’ investments in 2013, stating, “It was really cool to watch the stocks go up, and tough at times not to sell others.”  With a portfolio that grew in one year from $397,000 to $515,000, the Gold Team recently participated in two global investment competitions.  It may come as no surprise that they walked away with not one, but two victories.

After APMP member Heath Johnson appeared on the Market Site display in Times Square and closed the NASDAQ on Wednesday, March 19, it was announced that the team had won the 2014 Quinnipiac G.A.M.E. IV Forum investment competition in the value category.  This achievement was particularly impressive considering that there were over 1,000 participants from 118 colleges and universities!

Most recently at the 14th Annual Redefining Investment Strategy Education (RISE) competition on March 28 at the University of Dayton in Ohio, team members Ludwig, Nathan Sturos, and Judy Isaacson were on hand to snag the first place title of Gold Portfolio in the Value Investment Style category.

Competing at RISE in Dayton was the icing on the cake after APMP’s successful year.  Their dedication won them the ultimate Gold Portfolio, and Sturos remarked, “It was a humbling experience to be recognized at such a distinguished conference.”  Isaacson was proud of her team and grateful for the “great opportunity to see many different perspectives on the world of finance… and it was a fun experience!”

Are you a current student interested in joining a future APMP team?  The APMP application is available online!  Interested in becoming a student in the School of Business and Economics?  Apply for free today!

SBE’s Reginald Hicks Elected VP of USG

Reginald Hicks is a current Marketing student with a minor in Global Business.  He’s on the Dean’s Student Advisory Council, Heritage Month Committee, National Society of Black Engineers, serves as Treasurer of the American Marketing Association and Treasurer of the Society of African American Men.  But Reggie holds a new office; he was recently elected Vice President of Michigan Tech’s Undergraduate Student Government!

According to their website, the Undergraduate Student Government (USG) “serves over 220 student organizations in conjunction with student activities. USG allocates over $800,000 annually to support organizations and enable new opportunities.”  They play a key role in on-campus traditions such as Winter Carnival, and they work to ensure that the undergraduate student body is represented.

Reggie was elated to be elected VP.  He stated, “I cannot even express in words how I feel being elected Vice President of USG!  With great humility, I am honored to lead such a vital organization on Michigan Tech’s campus, in a very profound way.  There are a couple of initiatives I would like to work on during my candidacy.”

His initiatives include:

  • fostering a campus community conducive to showing the undergraduate population how much USG cares,
  • educating students as to how USG can be their voice on campus,
  • and creating a more inclusive, yet still diverse, campus.

Reggie will be a wonderful Vice President for USG, and we wish him all the best for his term!

Johnson Conquers NASDAQ

Members from the Applied Portfolio Management Program (APMP) were in New York City last week for Quinnipiac University’s Global Asset Management Education (G.A.M.E.) IV Forum, co-sponsored by NASDAQ OMX.  The event allowed 1,000+ participants from 118 colleges/universities a chance to network while gaining insight into the opportunities and challenges experienced by investment professionals.

Photo courtesy of Heath Johnson
Photo courtesy of Heath Johnson

Current SBE students and members of APMP, Heath Johnson and Claire Johnson, were on site at G.A.M.E. for the student-managed portfolio competition, which is open to students nationwide who have successfully managed their own actual portfolios.  Dr. Dean Johnson, Founding Director of the Applied Portfolio Management Program, stated, “By providing the opportunity to attend this investment conference in NYC, APMP continues to offer Tech students with direct educational experiences.”

Photo courtesy of Heath Johnson

Not only did current SBE student Heath Johnson gain the educational experience of competing at G.A.M.E., he was also able to close the NASDAQ and appeared on the NASDAQ Market Site display in Times Square!  Heath remarked, “Attending an investment conference with current Wall Street professionals and participating in the NASDAQ closing ceremony was a great experience.  Having my photo up on the NASDAQ Market Site in Times Square was a motivating taste of where my business education could take me.”

Would you like to see where your business education could take you?  Apply today to begin your undergraduate studies at Michigan Tech’s School of Business and Economics!