The team’s portfolio provided a return of 39.5 percent, above the 32.4 percent return generated by the S&P 500.
“The UT team did an excellent job,” said Darren Williams, faculty advisor to the UT team. “The students successfully achieved their performance goal, which was to outperform the S&P 500.”
UT joined the TVA Investment Challenge in 2011 after previously participating from 1998 to 2007. Including this year’s winnings, UT teams have won more than $120,000.
“The UT teams have outperformed the S&P 500 in each of the last three years and have received prize money in each year since rejoining the competition,” said Williams.
TVA’s Investment Challenge Program is a partnership between TVA and twenty-five universities in the TVA service territory that provides hands-on experience in financial asset management and performance-based awards the universities can use to enhance their business school resources.
Student teams actively manage real stock portfolios for TVA, designing long-term investment strategies and selecting investments under the guidance of faculty members and within investment guidelines established by TVA.
TVA initially provided $1.9 million from one of its long-term asset retirement trusts to start the program. Through 2013, the program has grown to over $12 million.
Currently, there are eleven UT students on the TVA Challenge Investment team: Ryan Alley, Jay Bucher, Jacob Clabo, James Darlington, Monty Islam, Victoria Kosier, Dania Li, Nate Massey, Vijay Patel, Kevin Ryan, and Louis Trapnell.
“The TVA Investment Challenge has been a very beneficial program to all of us, bridging the gap between theories taught in the classroom and real world application,” Patel said.
“The TVA Investment Challenge is an effective and innovative way to leverage our resources and offer experience and training to foster the next generation of financial leaders in the region,” said TVA Vice President and Treasurer Tammy Wilson.
TVA Investment Challenge participating universities are: Alabama A&M University; Austin Peay State University; Belmont University; Christian Brothers University; East Tennessee State University; Lipscomb University; Middle Tennessee State University; Mississippi State University; Mississippi University for Women; Murray State University; Tennessee State University; Tennessee Tech University; Trevacca Nazarene University; Union University; University of Alabama at Huntsville; University of Kentucky; University of Memphis; University of Mississippi; University of North Alabama; University of Tennessee at Chattanooga; University of Tennessee, Knoxville; University of Tennessee at Martin; Vanderbilt University; Western Carolina University and Western Kentucky University.