The Krause Fund blends academic rigor with real-world experience by providing University of Iowa finance students an opportunity to manage an endowed equity portfolio. The fund seeks to outperform the S&P 500 with a diversified portfolio of stocks with a strong presence in the state of Iowa.
Undergraduate students enrolled in Applied Equity Valuation (FIN:4250) manage the fund. The course exposes students to the valuation techniques and analytical tools employed by analysts. Students work in teams to evaluate companies and provide detailed investment recommendations. At the end of the semester, fund managers deliver formal investment presentations to the class and the Investment Advisory Committee of financial professionals.
The Krause Fund was formed in the fall of 1998 when Bill Krause, founder and CEO of the Krause-Gentle Corporation, donated $100,000 to the University of Iowa, Iowa State University, Drake University, and the University of Northern Iowa to establish undergraduate student-managed equity funds. These four schools compete in the Krause Investment Challenge, an annual contest matching the performance of each institution's portfolio during the academic year.