ISU College of Business student managed investment fund class outpaces national markets

POCATELLO – Students in the 2019 to 2020 Idaho State University College of Business Student Managed Investment Fund class earned a $9,452.45 check for the College as part of a course that is supported by the D.A. Davidson Investment Fund. 

The course allows students to invest and manage real money in the stock market. This year, the students had portfolio gains of 42.8 percent, which placed them fourth out of 21 colleges and universities participating in the program. The class also outearned national markets such as the Dow Jones and S&P 500 by 20.86 and 32.53 percent respectively.

The D.A. Davidson Investment Fund is a program created by D.A. Davidson & Co. to help students across the West and Midwest get real experience in finance, stock investments and portfolio management. This fund gives $50,000 to student teams in senior level finance courses at participating universities who then invest the money and manage the portfolio for a year. After the year, they assess their investments and have the opportunity to earn money for their school, receiving half of any gains above five percent. On the other side, if there are losses, D.A. Davidson absorbs them so there isn’t any loss to the students or colleges.

“The class has given students the opportunity to learn about and apply the principles of stock analysis and portfolio management to a real portfolio where they are investing real money,” said Kenneth Khang, Idaho State finance professor. “This gives students a real-world investment experience where their decisions have an actual dollar impact and gives them the experience of putting theory into practice.”

The College of Business has participated in this program since the fall semester of 2005 and over the past five years Idaho State has ranked sixth on a Sharpe Ratio, which is a measure of reward to risk. 

“The original goal for the D.A. Davidson Student Investment Program was to provide upper-level college students with hands-on experience managing an actual investment portfolio,” said Aaron Buckalew, a representative and advisor for D.A. Davidson and the class. “This is an incredibly unique opportunity where decisions being made directly impact the value of the money they are given to invest. My hope is that this experience builds a solid foundation for investing that the students will use throughout their careers and personal lives.”