Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Monday, October 6, 2008 Given $1 million to invest, OSU students look to beat market again Associated Press CORVALLIS, Ore. -- Suppose you had $1 million in cash to invest these days. Would you: A. Bury it in a coffee can in the back yard? B. Buy a wad of credit default swaps, those toxic assets so suddenly notorious? C. Give it to a bunch of college students and see how well they do with it? At Oregon State, the University Foundation has chosen C. It's turning over $1 million to the Oregon State Investment Group and letting club members invest the money. And why not? The group of about a dozen students, most in business, made 23 percent on its portfolio last year, easily besting the market. "We are really stoked out of our minds," said Adam Gulledge, 21, a senior in business finance and the president of the club. "It's definitely some interesting times to be getting $1 million," Gulledge said. "But we are making long-term investments. We have to see this as an opportunity ... It eventually will come up. And you know, like they say, 'Buy low, sell high.' You just have to roll with it." The foundation has $400 million in assets and responded to a proposal from the students. It will hold the student group to the same standards as any of its professional investment managers, said Duane McDougall, chairman of the foundation's investment committee and a former CEO at Willamette Industries. "Our role is to support education. I can't think of a better way for students to learn about investing. Plus, they have a strong track record of returns," McDougall said. Such arrangements have precedent on other campuses, he said. Gulledge said the student portfolio is worth about $62,000 -- or thereabouts, depending on the current state of the market. It is to remain separate from the university's money. The club will invest mainly in large cap equities, roughly defined as companies with a value of greater than $5 billion. "A good company lasts in the long run," Gulledge said. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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