WAVE SPORTS HOW DO YOU BEAT WALL STREET, ACHIEVE 22 PERCENT ANNUALIZED RETURN? ASK THREE JU GOLFERS By Phillip Milano MOST FUND MANAGERS WOULD rejoice over a 22 percent annualized return handling tens of thousands of dollars of other people’s money—or get jealous of whoever else could pull it off. They’ll just have to drool over what three JU business students accomplished last semester handling The Dolphin Fund, an investment portfolio in the Davis College of Business. The students – head manager Thomas “Trey” Douglas and team members
YONG
MURPHY
DOUGLAS
Francesca Yong and Jimmy Murphy – managed to bring the fund up $19,000
thousand dollars and began years ago
Depot stock, and the team made a short-
during the three months ended Nov. 30,
with donations to JU.
term gain of $1,000 on its stock.
about 22 percent). That compares to an
“If we lose money, it’s not the end of the
With Dr. Adams’ know-how, the three
S&P return of 0.68 percent (annualized at
world because the biggest thing is to learn
students created a diversified portfolio
3 percent) during the same period.
how to understand the stock market,”
and steered money into a variety of
he said. “But when you are sitting there
stocks, several of which were in energy
“BEATING THE MARKET IS A BIG
with actual money, there’s a little different
and insurance – AFL (AFLAC Inc.), PSX
DEAL,” SAID DR. BOB BOYLAN,
pressure on you.…I probably get more
(Phillips 66), CVI (CVR Energy Inc.) and
CHAIR OF JU’S DEPARTMENT
stressed than the other two team members.”
VLO (Valero Energy Corp.) – and did
for a 5.43 percent return (annualized at
OF ACCOUNTING AND FINANCE.
very well.
HE ATTRIBUTED THEIR
Working under the guidance of Adams,
SUCCESS TO HARD WORK;
the students researched the fundamentals,
While the idea is to make a profit, the
TEAMWORK; GUIDANCE FROM
watched trends, exercised patience during
overriding goal is to gain from the
DR. MICHAEL ADAMS, A JU
recent “fiscal cliff” market fluctuations,
experience of learning how the market
ASSOCIATE PROFESSOR OF
picked strong stocks…and listened to their
works, Douglas noted.
ACCOUNTING & FINANCE AND
instincts, Douglas said.
PROFESSIONAL PORTFOLIO
“When we go into the real world,
MANAGER HIMSELF; AND A
“We’d bring our ideas to Dr. Adams, and
employers hopefully will see we aren’t
“HEALTHY PART GOOD LUCK.”
he was a tremendous help with advice
coming in blind and that we know
and ideas,” he said. “You want long-term
what we’re doing,” said Douglas, who
The three are all varsity golf team members,
growth, but you have to look at the short-
graduates in May and would like to be
which Boylan said he felt “gives them an
term technical side of things, too. And
a financial adviser and someday a chief
edge, as they are very competitive.”
sometimes, you just have to see what
financial officer. “We’re also trying to lay
your gut tells you, too.”
a foundation for other students, to draw
The 22-year-old Douglas called it “a
them in and create a spark in them, and
dream opportunity” to manage the fund,
That paid off when Murphy, Douglas’
which is now worth several hundred
roommate, had “a feeling” about Home
show them how we do this.”