“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 their future careers,” says Kum & Go president and CEO.
Kum & Go has announced that the University of Northern Iowa is the winner of the 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. The results from the four schools from Aug. 31, 2011 through March 31, 2012 are as follows:
University Begin End Return
Drake $253,554.00 $280,967.00 10.80%
Iowa State University $183,678.00 $206,026.00 12.10%
University of Iowa $194,254.37 $224,550.59 15.60%
University of Northern Iowa $124,328.53 $146,768.14 18.50%
The University of Northern Iowa’s team was managed by undergraduate finance majors and Professor Mir Zaman.
“This year the students adopted a strategy of identifying and investing in undervalued stocks with growth potential in different sectors. They also identified and unloaded stocks in the portfolio which were poor performers or had little or no potential for future growth,” said Zaman. “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.”
According to Zaman, the University of Northern Iowa students were extremely dedicated in their involvement with the Krause Challenge.
“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 their future careers,” said Kyle Krause, Kum & Go president and CEO. “We would like to congratulate Professor Zaman and his students on their Krause Challenge victory. The students did a remarkable job navigating the stock market in today’s tough economic environment.”
Every year, a finance class or club at each university learns about the stock market, reviews individual company stocks and then invests the program money into the stock market. 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% of the total portfolio has to be invested into Iowa-based companies.
“I am honored and amazed to see how the Krause Challenge has been embraced by the four schools,” said W.A. Krause. When we started the Krause Challenge, we had no idea how much it would impact the universities’ finance programs. We are honored that the students take such pride in their contributions – this is a tremendous opportunity for students because they can take theory to a higher level of application.”
Kum & Go operates more than 400 convenience stores in 11 states (Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming).