NEW ORLEANS - with all the ups and downs of the stock market for a decade, the average investor can ask who looks on its mutual funds.
In the case of the Burkenroad Fund, is a group of students at Freeman School of Business University of Tulane who spend hours combing through the financial reports of companies which does not follow many analysts and retail investors have not heard- and eventually find many stock purchases Fund.
More than a decade of student participation results are not something to sneeze at. According to prospectus of Burkenroad version had vacuum of the Fund, which began on December 31, 2001, returned 11.9% since the creation by March 31, 2011. The Fund, managed by the banker at base of Biloxi, Miss Hancock Holding Co., a current of approximately $ 70 million. The Fund name of the University of the licenses, but is managed independently of the school.
The Russell 2000 index, a barometer of small and mid - cap companies reference, returned a set of 7.5 per cent over the same time.
In the year of recession in 2008, where of numerous plans of 401 lost a large part of their value, the Burkenroad Fund suffered a loss of slightly less than 25% compared to 33.8% for the Russell 2000 index. But both the following year. And for the three years ending March 31, the Fund returned Burkenroad 10.72% compared with 8.6% for the Russell 2000 index.
Peter Ricchiuti, who teaches the course analysis stock, said it takes most of the companies, and students come with others. He said that Reliance of the Burkenroad Fund on the reports of the student is unique, although other business schools put their pupils to the task of research on investment of the endowment of the University.
About 200 students in the current school year have been estimated 40 companies in the South. In view of the area, it is not surprising that 15 companies have some sort of involvement in the oil industry. The others are regional banks, and insurance, consumer goods, transformation of chickens and eggs and retail companies.
All their final analyses - called Burkenroad reports - are available to the public.
"At the Freeman school, do us our due diligence and take a look at longer term investment," said Anthony Elia, student aged 25 finance of Pasadena, California.
Companies are generally in the range of market cap 100 million to 1.5 billion dollars and located in Texas, Louisiana, Mississippi, Alabama, Georgia or Florida.
The Group seeks profitable companies - and those who do not have many financial analysts after them.
"One of the things is that we can clearly understand what they are doing," said Ricchiuti. "No Indian companies in high technology." Just meat-potato business. ?
Elia first oilfield services company key Energy Inc. and currently leads a team of students Carbo Ceramics Inc., a field oil services company and the Rollins Inc. consumer services specialist.
Alexandra Thurber, a student graduated from Bethesda, Maryland, for the first time on the service oilfield Willbros Group Inc. company and is now team leader of a group analysis producer of eggs Cal-Maine Foods Inc. and Pool Corp., which provides products for the swimming pool. It is not clear as yet if it will do the same task to live.
"My background is in mathematics and it is an extension of this", Thurber, 25, said. "The dynamic nature of markets is interesting." I think that I will complete working in a financial career, but not necessarily invest. ?
In accordance with the standard room, students are prohibited to personally invest in businesses that they have researched. They can purchase the Burkenroad Fund.
These students, from their point of view in life, grew up around a lot of cynicism on investment - the bubble bust, the scandals of Enron and Tyco International and, last but not least, the collapse of Lehman Brothers and the wipeout of retirement following the financial collapse of 2008.
"It is a always been certain cynicism," said Arnaba Dasqupta, an old student of 29 years with a previous job at a company for coverage of New York and is now in the hope of a banking career. "He did not come from a corporate scandal." It may be management being too optimistic. "It does lie not, but it is misleading to investors".
That would be the student stock pickers say a potential investor?
"I suggest you find a company whose products and values you like and stay with it", a stated shelf McCurdy, a student aged 24 years in finance from Baltimore.
Elia is against momentum investing - or "jump on the movement."
"Invest in companies you know and understand," said Dori Brown, a student of 21 years in Houston.
"Don't focused on an aspect of a company", said Thurber. "Look at the whole picture and not just something you like."
Arnab said that if an investor is not convinced of his knowledge, he should ask a Counsellor who is trustworthy.
"Do your own homework", he said. "The investment is a system with many people with many different opinions." Markets need you nothing. ?
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