Tag: LSGI Advisors Inc

APMP Students Attend Berkshire Hathaway Shareholder Event

Michael Morrison and Austin Kuttruff at the Century Center in Omaha, Nebraska.

Applied Portfolio Management Program members, Michael Morrison and Austin Kuttruff, gathered with thousands of stakeholders at the Century Center in Omaha, Nebraska over the weekend for the Annual Berkshire Hathaway Shareholder Event. The crowd in attendance was seeking an intimate exposure to Warren Buffet who is widely considered the most successful investor in the 20th century.

Michael said that one of the biggest takeaways from listening to Buffett was “you have to love something to do well at it.” Being Finance majors, the two Michigan Tech School of Business and Economics students jumped at the opportunity to attend the shareholder event and learned about the passion that is required to be successful. The opportunity to meet Warren Buffett, his company, and its subsidiaries is highly coveted in the world of finance. Their itinerary included watching a movie about Buffett’s company, and the opportunity to ask him questions in an open forum.

Given the Warren Buffet is 82 years old, some shareholders had concerns about the future of Berkshire after he eventually steps away. However, Buffett addressed these concerns with confidence in his company and the people who work there, saying:

The priority is that all of us continue to zealously guard Berkshire’s reputation. We can’t be perfect but we can try to be. As I’ve said in these memos for more than 25 years: We can afford to lose money – even a lot of money. But we can’t afford to lose reputation – even a shred of reputation.

Buffet told an Omaha news crew that he’s not going anywhere anytime soon, but there is a solid plan for when he does eventually step down. The people who will continue his legacy know the steps they must take to continue to be successful.

Overall, the trip was a great learning experience for the two students which was financially supported by Joe Dancy and the LSGI Advisors Inc.

New LSGI Trading Room Dedicated

“A great program finally has an appropriate and wonderful home,” said Darrell Radson, dean of the School of Business and Economics. He was talking about the new LSGI Trading Room, which was dedicated Oct. 7. It will house the Applied Portfolio Management Program (APMP), and was made possible by the generosity of Joe ’76 and Vickey Dancy. Joe is president of LSGI Advisors Inc., a venture fund organization.

APMP, mostly comprised of finance majors, is the School’s long-time success story: winning three national competitions in just over a decade while allowing students to invest more than $1 million of real money in the stock market.

For Joe Dancy, the choice was easy.

“The unique thing about APMP is that the students have more responsibilities and decision-making than other similar programs,” he said. “They go to the national competitions and do so well against many other teams. The students are making all the decisions, and I love the diversity. We’ve had students from different countries, female members, and there have been volleyball, hockey, basketball, and football players.”

One such football player this year is Pat Carroll, wide receiver for the Huskies.

“The room is awesome,” he says. “We are lucky to have this place and get this great experience.”

Carroll transferred from Purdue because they didn’t have an APMP program. Besides being at the dedication, he had been busy prepping for his first Advisory Board meeting with Dancy and others later Thursday night.

“We have to pitch our idea,” he says. “We have to say why they should trust us with this money to manage, just like real life. We have to justify our strategy.” (“It was a little nerve-racking,” Carroll said the next day. “But we did pretty well and received a whole bunch of great criticism from the board members.”)

So, what’s new with the new room?

“The addition of Bloomberg TV gives our students the same advantages as industry professionals,” says Dean Johnson, associate professor of finance and the founder and advisor to APMP. “We are the only educational institution in the UP with these improved trading capabilities. In addition to investing, students can also use its job line. It is a job-matching feature on a private line.”

Johnson said the students also appreciate the bright, window-walled room, which features more space, privacy and elbow room.

Student Anne Dancy (Joe and Vickey’s daughter and APMP member) especially appreciates the increase in space.

“We’ll be able to do more teamwork and use all our resources to become even more successful,” she said.

By Dennis Walikainen, senior editor. Posted in Tech Today on October 10, 2011.

Joe Dancy, APMP Supporter, Featured in Wall Street Journal

Joe Dancy featured with the 2010-2011 Applied Portfolio Management Program students

Joe Dancy, an avid supporter of Michigan Tech and the Applied Portfolio Management Program, has been featured in the Wall Street Journal discussing the benefits of teaching and establishing relationships.

His message, focused on getting involved, is important:

There are plenty of opportunities in high schools, community colleges and universities for advisers to become involved in academia. Working with a school at any level says to clients and other parties: “People are interested in hearing what I have to say.” It’s also a great opportunity to hear feedback on your work. You find out whether the issues you’re addressing are engaging and whether or not you’re able to effectively communicate them. And advisers are not limited to addressing business programs. You could speak to the members of a math department or law school or you could coach a stock market team.

Thanks Joe, for all of your support and many words of wisdom!

Read the full article here.

LSGI 2011 Scholarship Award Recipient

This article is republished from the LSGI April 2011 Advisors Report. Visit the LSGI Fund website.

Annette Felton, 2011 LSGI Fund Scholarship Recipient

We are pleased to announce that Michigan Technological University senior Annette Felton is the 2011 LSGI Scholarship award winner. The scholarship is awarded to a student who displays excellent academic achievement, expresses an interest in finance or applied mathematics, and demonstrates high moral and ethical characteristics.

Ms. Felton is from Chesterton, Indiana, and attended Michigan Technological University because of its unique Applied Portfolio Management Program (APMP). The undergraduate APMP students actively manage, under guidance, $1.5 million of the school’s endowment fund.

This unique program is comprised of Michigan Tech finance students from various countries around the globe. Historical returns of the student managed APMP portfolio have exceeded the S&P 500 index. While the program is small (14 students this year), graduates of the program are
working across the globe for various financial institutions, money management firms, and hedge funds.

From a statistical standpoint, the students in the program have provided the portfolio with positive ‘alpha’ (excess returns) for the level of risk they have incurred. The students’ portfolio is managed as an ‘enhanced index’ portfolio, split between student selected exchange traded
funds, stocks, and bonds. This year, students have also developed strategies to effectively trade options which has enhanced the learning experience.

APMP students were recently interviewed by a local television station on the impact of global unrest on investment strategy and the markets, and were interviewed live by Bloomberg radio at the recent University of Dayton investment symposium.

Annette is the co-founder and Vice President of the MTU Finance Club and is an active member of the Dean’s Student Advisory Council. Last year as part of the APMP team she attended the Berkshire Hathaway annual shareholders meeting in Omaha and met Warren Buffett and Charles Munger. Graduating in Finance with a minor in International Business and the German language, she has an interest in foreign currency and cash management. She has been offered a position as a financial analyst from the global mining powerhouse ArcelorMittal.

In her free time she enjoys backpacking, volunteering at the humane society, water sports, and traveling both domestically and abroad. We are proud to have Annette Felton as the 2011 recipient of the LSGI Scholarship.

To learn more about the LSGI Fund, please visit their website.