Idaho shares top earnings with Portland State in year of rocky performance
D.A. Davidson & Co. today announced that a student team from the University of Idaho has been named the winner of the annual Fred Dickson Memorial Award, the top award in the firm’s Student Investment Program, while also completing the year with the second best-performing portfolio. A Portland State University team had the top-performing portfolio in the program, enjoying a total return of 16.6 percent for the program year.
The Fred Dickson Memorial Award honors one team annually that is considered the most outstanding participant in D.A. Davidson’s Student Investment Program. In selecting the winning program, D.A. Davidson considers several topics in addition to investment performance, including how well programs stick to their stated investment processes, and the overall level of student engagement. As winners of the 5th annual award, the University of Idaho Vandals will receive a $2,000 check and receive invitation to an exclusive upcoming D.A. Davidson event.
“We congratulate the Vandals on their adherence to the guidelines of the Student Investment Program and their strong performance over the years,” said James Ragan, Director of Wealth Management Group Research for D.A. Davidson and co-head of the company’s Student Investment Program. “This program provides a unique opportunity for aspiring financial professionals to learn a range of valuable skills, and we’re honored to partner with teams such as the Vandals.”
Rusty Schatz, Senior Vice President, Financial Advisor, serves as D.A. Davidson advisor to the University of Idaho team, and said he is impressed with their thorough analytical processes, conducted under the direction of Professor Magdy Noguera.
“It is fantastic for me to see them earn this award this year as I’ve witnessed their hard work and focus on research over the last several years,” Schatz said. “Go Vandals!”
For the program, D.A. Davidson provides student teams from senior-level investment courses at 21 Western and Midwestern colleges and universities with $50,000 to invest in the stock market, for a total commitment of $1.05 million annually. Each team makes investment decisions with the guidance of a local D.A. Davidson financial advisor and manages the portfolio for one year, starting Sept. 1. The program is designed to provide hands-on experience in finance, stock research, portfolio management and investment topics.
The top-performing teams receive a check for their college, earning half of any portfolio gains above 5 percent. D.A. Davidson absorbs any losses. For the 2018-2019 program recently ended, the D.A. Davidson donation totaled $4,447. In the 25 years since D.A. Davidson began sharing program profits, the company has donated $628,169 in profits to participating institutions.
Portland State’s 16.6 percent return for the year was well above the 2.9 percent total return for the S&P 500 Index, a standard benchmark for the stock market, for the same period, and four times higher than the 4.1 percent return for the Dow Jones Industrial Average. The University of Idaho team ended the year with an 11.2 percent return on their portfolio.
The Portland State and University of Idaho teams were the only two to earn checks in the 2018-2019 program year. Brent Williams, Senior Research Analyst and co-head of the Student Investment Program, said the results stand in marked contrast to the prior year, when overall U.S. market performance was stronger and a number of participating teams received checks for their portfolios’ strong results.
“Amid rising economic uncertainty, the past year has resulted in market fluctuations and mixed returns for many investors, including our Student Investment Program teams,” Williams said. “Difficult market years like this reinforce our belief in the importance of learning about investing and portfolio management, and in understanding how markets can change.”
The Student Investment Program was launched in 1985 at Montana State University and gradually added colleges throughout the West and the Midwest since that time.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 and headquartered in Montana, with corporate offices in Denver, Los Angeles, Portland and Seattle, the company has approximately 1,400 employees and offices in 25 states.
Subsidiaries include: D.A. Davidson & Co., the largest full-service investment firm headquartered in the Northwest, providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; D.A. Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser providing fixed income portfolio and advisory services.
For more information, visit dadavidson.com.