Tag: apmp

Michigan Tech Students Receive $50,000 to Begin Trading Stock Options

APMP pictured with Joe Dancy, long-time supporter and board member

Students in the Applied Portfolio Management Program are no strangers to managing a portfolio of stocks and bonds in the stock market.  Now with $50,000 in funds from long-time APMP supporter, Joe Dancy, the students will add another type of asset to their portfolio: options.

Options involve the opportunity to buy or sell different stocks at a predetermined price and time. Not all companies has listed options and traditionally it has been the larger firms. But as Dancy discovered, over the last few years the exchanges are listing options on smaller companies, which makes the process more interesting and potentially lucrative.

Now with Dancy’s generous contribution ear-marked for options trading, APMP students will develop and implement trading strategies around stock options.

“The goal is mainly educational. If we make money, that’s great, if we don’t hopefully Professor Johnson can give the students the theoretical background on why a certain strategy didn’t work. At the end, I’d like to see students confident in managing money and namely their own retirement funds. That will mean I’ve helped to accomplish something. ” Joe Dancy.

Trading options can be risky. To reduce that risk, Director of APMP and Associate Professor of Finance, Dean Johnson, and Dancy will have ultimate authority on stock option portfolio management.  The students will be doing the groundwork and researching the potential payouts from companies in different sectors. Much interest lies in companies that specialize in the field of energy.

“Being able to experience and manage an options portfolio while still in college is a great resume builder and more importantly will give the students more confidence in their investment strategy development,” added Dean Johnson. “Trading stock options is a great example of how we are bringing the best opportunities to Michigan Tech students.”

APMP takes Second at RISE X in Dayton, Ohio

APMP students competed at Rise X in Dayton, Ohio with over
APMP students competed at Rise X in Dayton, Ohio against 50 teams.

Michigan Technological University’s Applied Portfolio Management Program (APMP) took runner-up honors at the University of Dayton’s Redefining Investment Strategy Education (RISE X) conference and competition recently. View photos from the competition.

Michigan Tech’s Gold Team portfolio had a 31 percent return this year and was narrowly defeated by the College of New Jersey in the value-style portfolio category. Fifty teams entered that category.

Investing proved to be challenging this year, given the state of the economy. “A lot of the schools didn’t beat the market, but we did and that was a big accomplishment,” said Ed Drouillard, a fourth-year finance major.

“I was shocked at the amount of money that schools are able to manage,” noted Eric Tangko, fourth-year finance major. “Most managed between $100,000 and $250,000, where we had over 1 million dollars to invest.”

RISE X includes student workshops geared toward learning investment strategies and the annual student-managed investment portfolio competition. Modeled after the World Economic Forum, RISE is the world’s largest student investment forum. This was the tenth year of the competition, and Tech has won the value category three of those years.

“The student-managed portfolios remain competitive in a very difficult market, which reflects the tremendous learning opportunities these students are receiving,” said David Sauer, director of the University of Dayton’s Davis Center for Portfolio Management and managing director of the RISE forum.

A Learning Experience

This year RISE X hosted twenty-three keynote panelists from companies such as Hewlett-Packard, Moody’s Investors Service, Merrill Lynch, Wells Fargo and many more.

Students attend a full day of workshops and presentations that cover popular topics in the field of investment strategy, such as alternative investments, ethics, fixed income, hedge funds, international markets, portfolio management perspectives and risk management.

“The equity research workshop demonstrated the amount of knowledge needed to analyze a specific sector,” said Amanda Vogt, a fourth-year finance major. “The presenters complete a year’s worth of research and then become experts in their individual fields and products, making it easier to identify investment strategies in that area.”

The RISE Forum enables students to talk about their own experiences in addition to hearing the experiences of the keynote panel. Students also had the opportunity to discuss their applied investment programs.

Representing the Michigan Tech School of Business and Economics at RISE X this year: Eric Tangko, Ed Drouillard, Amanda Vogt, Roy Manninen, Zeng Jie, Mindy Becker, Efrain Munoz, Kyle Thornton and David Clapp. Associate Professor Dean Johnson is the founding director of the APMP.

About APMP

The APMP manages over $1 million in the equity and fixed income markets. APMP designated donations to the Michigan Tech Fund from alumni and friends provide support for student travel and scholarships. Learn more about the Applied Portfolio Management Program.

APMP: Call for 2010-2011 Portfolio Managers

APMP seeks new Portfolio Managers
APMP seeks new Portfolio Managers

Did you know that the Applied Portfolio Management Program (APMP) manages over $1 million of actual money? Are you ready to improve your aptitude and leadership skills in the area of finance and financial economic theory, to manage the portfolio over the next academic year? That’s right, now through the end of March, APMP is seeking new portfolio managers.

As a member of APMP, be ready to:

  • Apply your knowledge of investment strategies
  • Gain in-depth knowledge of the investing world
  • Enhance your ability to value stocks and bonds
  • Strengthen your resume by gaining valuable experience
  • Improve your business report writing skills
  • Work as an integral part of a portfolio management team
  • Interact with business professionals

Students interested in a position on the Portfolio Management Team are urged to visit the Prospective Students link on the APMP website. For additional information, contact Professor Dean Johnson at 108 Academic Office Building or via e-mail (dean@mtu.edu).

Application procedures and material is available online and is due by March 30th, 2010.

Check out the Financial Trading Lab, home to APMP, on Facebook.

APMP Students Present to Advisory Board

Last Thursday, the Applied Portfolio Management Program presented their outlook and investment strategy to the advisory board for approval of fund management for the school year. Students presented their prediction of the economic situation over the course of the next year and their specific approach on portfolio management and received approval from the board.

“The students had the opportunity to practice their presentation and information delivery skills,” stated APMP advisor, Dean Johnson.

For more information on the program or to join, visit the APMP website.

About APMP

The Applied Portfolio Management Program provides the unique opportunity for senior students to manage an investment portfolio comprised of funds provided by the Michigan Tech Endowment fund as well as other generous donors. APMP was initiated in 1998 through generous contributions of alumni and friends of Michigan Technological University. APMP enjoys the gracious support of many firms, the University, The School of Business and Economics, and the School of Business and Economics National Advisory Board.