NO BUBBLY GAIN, NO PAIN, NO TARP - School of Business ...

Back row (left to right): Spenser Samms, Grant Taylor, Joe Taylor, Joe Zhou, Josh Schoenfelder, Bill Beck, Michael Moore,
Brett Kunshek, Ryan Drigans, Vince Hayes, David Kohtz. Middle row: Scott Miller, Thomas John, Xin Zhao, Roah Sham,
Lucas Kempke, Justin Luegar, David Holzman. Front row: Chet Batson, Luke McKee, Rachel Sanner, Chris Carr
STUDENT-RUN PORTFOLIO
wEATHERS TOUGH MARkETS
AppliED pORTFOliO mANAGEmENT upDATE
A severe downturn is also a chance to
learn, and the Spring 2009 Applied
Portfolio Management (APM) class got
help on that score from some seasoned
professionals. Not surprisingly, the APM
portfolio took big hits in late 2008 and
early 2009, reflecting the swings in the
overall market. The turmoil offered an
opportunity to study the financial system
and understand the roots of the crisis.
In February, the class heard from Bryan
Krug and Tim Burger of Waddell & Reed’s
Ivy Fund. Burger is an APM alumnus who
works with Krug, a Fixed Income Portfolio
Manager. They discussed the credit
markets and alternative credit investment
strategies that Krug has successfully
pursued during the crisis.
At the end of the semester, Laurian Lytle,
School of Business Ph.D. 1992, and a
Financial Sector Analyst for Waddell &
Reed, talked about how she analyzed
financial institutions, what their problems
were and what it would take to get the
large banks going again. By the time
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our last speaker of the year, Jade Shopp
of Deloitte, came to class, the students
couldn’t get enough. He walked them
through some of the recent derivative
instruments and how those instruments
affected different types of companies from
financial institutions to food processors.
Tom John, APM Assistant Portfolio
Manager, said of Shopp’s presentation,
“I really have a good sense of how the
pieces all affect each other now.”
The class isn’t only about analyzing stocks.
Besides the “investment role,” students also
help maintain alumni relations. Just as
for-profit investment companies have to
attract investors and communicate with
clients, APM maintains its relationships
with alumni and friends. Students all
have a role to play in maintaining that
relationship. The class publishes a
quarterly newsletter. Students write up
features for each issue, and send thank
you notes to donors and class speakers.
The annual APM Golf Tournament
contributes mightily to keeping APM
students and alumni in contact with each
other. It typically takes place in September.
Students begin preparations in the spring by
writing letters and making follow-up calls to
potential sponsors. The whole class helps
out by working or playing in the tournament.
Students get to practice their networking
skills and the alumni get a chance to renew
acquaintances and meet the students.
“The APM golf tournament is a fun way to
reconnect with alumni of the APM class.
It is also a great way to catch up with the
Finance faculty, B-school administration
and professionals in the financial industry,”
said APM alumnus, Jeff Morrison. All are
welcome to participate in the tournament.
To get more information about next year’s
tournament, go to www.business.ku.edu/
apm and click on Golf Tournament.
100%
50%
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1994
APM
1995
1996
AnnuAL APM
NASDAQ
The APM portfolio has outperformed
NASDAQ in 10 of 16 years since inception.
1997
1998
1999