Davis Investment Group
The purpose of this group is to provide you an opportunity to apply your presentation and decision-making skills in the context of investment management.
If you participate in the Davis Investment Group you will manage a diverse portfolio of stocks, bonds, and other equities.
Led by a faculty member, each group member tracks a specific market sector and provides weekly reports, which include news, ratings, and personal recommendations. Group members also present investment opportunities to each other in formal presentations. These activities provide members with invaluable real-world experience with financial markets and investment decisions.
The Davis portfolio includes common stock, bonds, warrants and cash equivalent securities. In agreement with investment objectives, assets in the portfolio should be managed in a moderately conservative way. In this context, conservative relates to such issues as expected long-term rates of return, volatility, investment vehicles, and diversification among economic and industry sectors and individual securities.
Davis portfolio should be managed with these two objectives:
- Growth of Capital: The asset value of the portfolio, exclusive of contributions or withdrawals, should grow in the long run and earn at least a yearly rate of return equaling the return on the S&P 500 index.
- Preservation of Capital: Asset growth, exclusive of contributions and withdrawals, should exceed the rate of inflation given by the CPI in order to preserve the capital of the portfolio’s assets.
Investments are to be made consistent with the safeguards to which a prudent investor would adhere subject to the limitations stated herein. Tax-related issues will not enter into consideration in the management of the assets. Realization of capital gains and losses should be viewed solely in terms of investment merits. All assets selected for the portfolio must have a readily available market value and be marketable.
Portfolio should be well-diversified to avoid undue exposure to any single economic sector, industry group, or individual security.