The Greenville College Management Department placed first in this year’s St. Louis Collegiate Investment Management Contest and will collect a $10,000 award for its winning entry.
Each year, Principia College invites colleges and universities in the St. Louis area to submit hypothetical portfolios comprised of 20 “value” stocks. The portfolio that shows the greatest growth in two and a half years wins. UMB Bank, St. Louis, supervises the contest and assesses the results.
Greenville College’s $1,000,000 investment grew to $1,873,000. The second place winner lagged $275,000 behind.
Greenville College Professor of Management Larry Sayler reported that seven of the College’s picks more than doubled. Its top performance stock, Avis-Budget, more than quadrupled from $50,000 to $207,000. Other top performers included Alaska Air, BT Group ADR (British Telecomm), Discover Financial, Hawaiian Holdings (Hawaiian Air), Tenneco and Valero Energy.
“Fortunately, only one of our stocks lost money,” said Sayler.
During the 28-month contest period, the winning portfolio was up just over 87 percent. In contrast, the S&P 500 increased 54 percent, and the portfolios of other contestants increased an average of 50 percent.
Sayler said the Management Department will use the prize money to fund faculty and student enrichment opportunities.
The contest is endowed in perpetuity by St. Louis investment firm Towle & Co. Its purpose is to give students experience with portfolio management and value investing. Five to nine institutions generally participate. Greenville College also won the contest in 2007.