CEDAR FALLS, Iowa -- The University of Northern has been named the winner of Kum & Go's 2012 Krause Challenge investment competition.
The Krause Challenge began in 1998 when W.A. Krause, founder and chairman of Kum & Go, presented a one-time gift of $400,000 to be divided equally among Drake University, Iowa State University, the University of Iowa and the University of Northern Iowa to create a program for finance students to enhance their knowledge and experience the stock market fluctuations and portfolio management. Each school competes to deliver the highest return on their portfolio and for the title of Krause Challenge winner.
From Aug. 31, 2011 through March 31, 2012, a UNI team of undergraduate finance majors was able to receive an 18.5 percent return on their portfolio. The team included UNI seniors Eric Hackman, Sean Biggins, Ben Heinzman, Mark Doering, Yugi Zhao, Heather Lensing, Bret Johannsen, Mohammed Alshady, Matt Terpstra, Don Guarino, Jake Johansen, Jordan Voss, Jeffrey Scott Breon, Jason Brasch, Khoon Huang Chia, Michael Hauser, Jared Klimowski, Mark Herman and graduate student Kai Zhang.
"This year the students adopted a strategy of identifying and investing in undervalued stocks with growth potential in different sectors," said Mir Zaman, professor of finance at UNI. "They also identified and unloaded stocks in the portfolio which were poor performers or had little or no potential for future growth. With a volatile stock market and the financial crisis in Europe, this past year provided a great learning opportunity for our students in terms of investing in the stock market."
"The purpose of the Krause Challenge is to provide college students with a hands-on experience in the stock market that will benefit them in the future careers," said Kyle J. Krause, Kum & Go president and CEO. "We would like to congratulate professor Zaman and his students on the Krause Challenge victory. The students did a remarkable job navigating the stock market in today's tough economic environment."
The Krause Challenge is an ongoing program, which allows students to re-invest the money from year to year. The only guideline is that 10 percent of the total portfolio has to be invested into Iowa-based companies.