This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

University of Oregon Investors Focus on Small-Caps

Competition, University of Oregon-Style

The University of Oregon has produced competitive greats like Steve Prefontaine (running) and Ahmad Rashad (football), so it's no great surprise that the UOIG likes to compete.

The UOIG is currently ranked No. 1 in the Davidson Student Investment Program for 2007-2008 (which started Sept. 1, 2007).

According to senior Ben Brookins, DADCO's portfolio manager, "We are by far the best performer of the schools in the Davidson competition . If the fund was never rebalanced, our compound annual growth rate would be around 12% over the last seven years, while the next schools' compound annual growth rates would be near 3% or below that."

So how does the UOIG beat its peers?

Big Bets on Small-Caps

UOIG's approach to stock-picking is a bit different from that of other schools. The student analysts use a bottom-up approach when analyzing stocks, and they focus largely on small-caps . In fact, Brookins says "The only two stocks in our DADCO portfolio that are over $1 billion market cap are ones that appreciated that way."

DADCO's current five stock holdings:

Sector Exit



You won't find a lot of financials in the UOIG's portfolios. But the reason for this might not be what you think. Crook says, "I'd love to take credit for the group that we saw the whole credit crunch coming, but we didn't." According to Crook , the group's exit from the financial sector was largely based on the issues they had using traditional valuation methods on these stocks.

Crook explains: "Last year we had two regional banks ( PFF Bancorp (PFB) and Pacific Continental Corp. (PCBK)), we had a couple of insurers (including American International Group (AIG)) and a re-insurer ( Everest Re Group (RE)), and slowly but surely we started getting out of them. We had difficulty valuing some of these banks and insurers that are asset-based and not fee-based for the fact that we didn't know how to value their assets correctly, in a way we felt good about."

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ARTC $48.60 0.08%
BAX $67.37 0.00%
DE $93.35 0.00%
FCN $39.66 0.00%
NTGR $30.60 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs