YOUNGSTOWN, Ohio (WKBN) – While many people may have worried about recent stock market declines, some students at YSU were watching closely in a different way.
The YSU Investment Club came together on Monday to discuss their 2018 results for the student investment fund.
The group used a big market drop from Christmas Eve to make a major move in its portfolio.
“Right after that, we bought four stocks and sold two, so it worked in our favor, buying those stocks when the market was down,” said Jake Rauschenberg, vice president of the club.
The buys included companies which were the number one and two players of their industry, and the rejects were companies which had stopped growing. Students in the club pitch stock moves to the group and then they vote.
Last year, their portfolio was up 2.59%, which the S&P 500 was down 4.4%.
“We outperformed by about 6%, which is really, really key in the investment world,” said Nick Tancabel, president of the club.
In the first three months this year, the fund had made $200,000, pushing it over half a million dollars. This is the seventh time in eight years that they beat that benchmark.
“They have a very disciplined approach. It’s worked well for them,” said YSU Foundation board member Tom Cavalier.
The group invested in business it understands, plus looks ahead with younger eyes. They were ahead of the game as people moved away from packaged foods. Now, they see another trend.
“Just not investing in a company that does well. It’s investing in a company that does well for the community, the environment and their employees,” said club treasurer Alexa Coburn.
The main keys to their success are hard work and homework. They said making those moves right after Christmas has already paid off.
The money provides scholarships for YSU students.