MBA students bullish on economy and $30,000 investment program
by Chip Pearsall
Michael Rice, assistant professor of business
administration, and 20 of his students are bullish
on the American economy.
They have to be. They've got $30,000 at stake
in the stock market.
The students, all graduates in the master's of
business administration (MBA) program, are
finding out about investments in a simple,
practical way. They invest.
And if they are successful, it can mean cash for
a local charity.
A trust fund set up in 1952 for UNC by Charles
H. Babcock, one of the founders of Reynolds
Securities, Inc., of Winston-Salem, enables the
students to buy and sell stocks, bonds and stock
options as part of the portfolio management
course Rice teaches.
Rice said Monday that the fund, officially
known as the Reynolds Student Investment
Trust Fund, was established to promote
competition between the business departments
at UNC and Duke University. Each school was
given $10,000 to begin its investment portfolio.
' "Mr. Babcock wanted to promote competition
other than athletic competition between the two
universities when he established the fund," Rice
said. "The last time I heard unofficially, we were
The competition is based on the total profits
made on the portfolio, including dividends and
price appreciation from stocks, and interest from
The UNC portfolio now stands at $30,000,
Jose Espejo, assistant professor of business
administration at Duke, said the portfolio there
is valued at $13,000 or $14,000.
"The portfolio is not being managed right
now," Espejo said. "It was taken over by an
undergraduate seminar in September, but that
seminar ended when the session ended." Espejo,
who taught the seminar, added that investment
was only a small part of the seminar, and only a
small profit was made on the portfolio.
"Obviously, we're not on a competitive basis
(with UNC) right now," Espejo said. "The fund is
available for any students who are interested in
working with it."
Even if there is no real competition between
the two universities now, the competition within
Rice's class is keen.
Rice divided his class fnto four five-member
teams. Only one team works with the trust fund
money, and Rice negotiates that team's decisions
with the Reynolds Securities, Inc., office in
Raleigh. The other teams' decisions are filed.
Each team, however, assumes that it is
working with the $30,000.
The teams meet informally to discuss strategy
and decide which stocks to buy and sell. John
Picone, a member of a team called Kamkorp,
said that it is sometimes hard to decide when to
buy and sell.
"Everybody has a few stocks they particularly
like, and sometimes it's hard to let' one go."
Picone said. "Generally, though, everybody is
Each group member researches individual
stocks, using information from financial services
available in Wilson Library.
When the teams- the Old .Well Equity Fund,
the Sinking Fund. Optional Release and
Kamkorp have made their decisions, they meet
individually with Rice to plan future investments
and sales. Formal meetings are held every month
for three hours. There, two groups, which
represent the board of directors of a company,
report to the class!.
"We usually do it up pretty nicely at our
formal meetings," Rice said. "The students dress
up. and we meet in one of the more formal
conference rooms." ,
A guest from the business community sits in to
evaluate the presentations and talk about his
firm's economic outlook.
The overall situation in the portfolio
managment class is realistic. Rice said. "The
students have the same information that
investors and portfolio managers in the business
world have, and they make their decisions on the
basis of this information."
Portfolio managers are persons who decide
what to buy and sell in a collection of
investments for a business institution. Rice said
many of his students aspire to become portfolio
"It's a very exciting profession. You're making
decisions about large sums of money; in fact,
millions of dollars. If you do well or if you do -badly,
it's apparent in dollar terms. It's definitely
a profession for aggressive and independent
"There's always a benchmark to measure your
success by, and that's the level of the market."
Rice said that, over the past five years, the
UNC portfolio has performed better than the
market as a whole, indicating that the students
"have been pretty skillful at what they're doing."
And from that success, half the total profits
each year are donated to the Community Chest.
Since 1952, more than $20,000 has been given.
Other profits remain in the portfolio for future
The Community Chest donation is an
incentive for the class. "If nothing was done with
the portfolio," Rice said, "there wouldn't be
much reason for the students to do well, exepet
for their own satisfaction."
Rice did his undergraduate and master's work
in business administration at Florida State
University, completing his Ph.D. at UNC in
1975. He has taught here since 1974.
It will be clear and warm
today with a high in the
mid 60s and no chance of
precipitation. Last nighfs
low was about 35.
Volume No. 84, Issue No. 95
Serving the students anil the I Diversity community since IH9S
Friday, February 11, 1977, Chapel Hill, North Carolina
South Florida Tickets
Students may still obtain
tickets for the South
Florida game. The ticket
office will open at 8:30
Please call us: 933-0245
to be filled
to be selected
by Tony Gunn
The process of selecting persons to fill 1 1
positions on the 32-member University of
North Carolina Board of Governors has
begun in the N.C. General Assembly. -
The University of North Carolina Board
of Governors dictates policy and draws up
budget requests for the 16-campus
Two committees in the legislature, the
University Board of Governors Nominating
Committee in the Hosue and the University
Board of Governors Committee in the
Senate, will be accepting nominations for the
board through Feb. 28.
When the nominations are completed, the
committees in joint session will screen the
nominees as to their qualifications,
backgrounds, willingness and ability to
Committee nominations wil then be
placed before a joint session of the House
and Senate, where further nominations will
All additional nominees will be contacted
and asked if they would serve if elected.
The Senate will then elect:
A woman for an eight-year term.
One person from a minority race for an
Two at-large persons for eight-year
One at-large person for a four-year
The House will elect:
A Republican for an eight-year term.
Three at-large persons for eight-year
One at -large person for a two-year
One at-large person for a term expiring
June 30, 1977. As this person could only
serve about two months, it is as yet
undetermined whether this position will be
Eight of the 1 1 positions available are
filled routinely every two years. The other
three are due to resignations.
This procedure has been very successful
since its inception in 1973, said John L.
Sanders, vice president of planning for the
UNC General Administration. Because the
members are elected by the legislature, he
said, they deal with problems with a
statewide view. The members are not
selected because of where they live in the
At least four incumbents have already
been nominated: State Democratic
Chairperson Betty McCain of Wilson;
Wallace Hyde of Asheyille; Thomas J. White
Jr. of Kinston; and Maceo A. Sloan of
Other present board members eligible for
reelection are George Watts Hill of Durham;
Victor S. Bryant of Durham; and Reginald
F. McCoy of Laurinburg.
Other nominations include Harvey A.
Jonas Jr. of Lincolnton; George R. Little Jr.
of Elizabeth City; Clint Newton of Shelby;
John S. Vaughan of Woodland; H. L. Riddle
of Morganton; Furman P. Bodenheimer of
Cary; Lenox Gore Cooper of Wilmington;
Adolph L. Dial of Pembroke; Victor W.
Dawson of Fayetteville; Grace Smith Epps
of Lumberton; and Charles Flack Jr. of
JpiM -r- 1
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a ntn a n
oss enter runoff;
by Karen Millers
Staff photo by Allen Jermgan
Pegasus Theatre Troupe will perform at 8 p.m. today and Saturday in Hill Hall
Auditorium. The program is entitled "Reflections In Flight." Pegasus has been
showing some of its tricks this week in the Ur.ion.
Bill Moss will lace Mark Miller in the
runoff for student body president Feb. 1 6. A
recount Thursday showed that Moss had a
slim edge of 19 votes over third-place
contender Tal l.assiter.
Miller took a clear lead w ith 1.751 votes to
Moss' 1.302 and Lassiter's 1.283. but he fell
short of the majority needed for a win.
The first count Wednesday night put
l.assiter ahead of Moss by 16 votes. Election
Board Chairperson Craig Brown said an
error on the tally sheets widened Lassiter's
margin by another 50 votes. However,
arit hmet ical mistakes were then found which
showed that Moss passed l.assiter by 19
I ass iter and Moss were not aware of the
switch until about 12:30 p.m. Thursday,
l.assiter said. But l.assiter did not ask for a
"I have enough confidence in Craig to
think he did it right the second time." he said.
l.assiter said he is "most enthusiastically"
giving his support to Moss.
"Tm not only giv ing him my support." he
said, "but I'll be campaigning door-to-door
Moss said he felt he had taken the runoff
position Wednesday night because his
manager made an unofficial recount.
"But it was still verv much a waiting
game." M oss said. He said he had expected a
runoff would be necessary.
"Een if just the three of us had run. I
didn't see any way that any of us could get a
majority." he said.
Moss said he expects a very tight race next
week, but he is glad he will be running
"It will be a clear confrontation between
the old and the new." Moss said. He
explained that he felt Miller w ould continue
the programs that have been started, while
his own administration would open up
Student 'Government and bring about
Miller said that he does want to continue
some programs that he considers good, but
that he also wants to add "some new and
innovative ideas." ,
"I would like to see a mixture of the two."
he said. ' "
Miller's strongest areas were James and
Morrison, and he led in several of the dorm
polling places that had a smaller turnout of
voters. He took Granville, followed closely
Moss led at the Y-Court. and Lassiter
took a wide lead at Parker.
In other campus-wide elections, the
constitutional amendment granting the
Daily Tar Heel separate funding passed by a
margin of over four to one. The amendment
guarantees the Daily Tar Heel 16 per cent of
student fees appropriations yearly and
establishes a board of directors to serve as
publisher of the paper.
Bain Jones won overwhelmingly as
Residence Hall Association president, and
David Royle led over Gary Mason in the
race for Carolina Athletic Association
(CAA) president. However, Royle failed to
win a majority, so he will face Mason in a
David Hackleman won on write-in votes
for Graduate and Professional Student
The races for senior class officers required
only a plurality of votes. Jeff Price and Doug
Markham captured the positions of
president and vice president, respectively.
Mary Jo Southern won as secretary and Jon
Sasser took the office of treasurer on write-in
Winners in the contests for Campus
'fimernihg Council seats are the following:
District I. Jay Clark: District 2, David
Hackleman; District 3. Glenn Peck; District
5. Darius Moss; District 7. Diane Schafer;
District 8. Gus Lehouck; District 9, Barbara
Huffman; District 10, Gordon Cureton;
District 1 1. K. B. Kelley; District 12, Sonya
Lewis; District 13. Chip Cox; District 14,
Bob Long; District 15, Betsy Lindley;
District 20. Kim Jenkins.
District 4 and 16 through 19 will have
runoffs between write-in candidates.
Polls will be open Feb. 16 from 10 a.m.
until 7 p.m. for the runoff elections.
Pegasus: mime and magic traveling in medieval tradition
by Phred Vultee
It is by Edict of this critic that one troupe
of traveling players hereinafter known as
Pegasus shall be received with all H onor and
Dignity in this Area, as befits their high
Status and great powers of Amusement.
Pegasus is indeed deserving of great
medieval honor. Probably the- smallest
troupe (two) that can qualify as such, they
are currently bringing Renaissance-era
highjinks to the UNC area. David Avadon
and Jeanette Triomphe, the members of
Pegasus, have been miming and magicking
their way around the campus since Monday,
not to mention performing for their supper
New DTH editor
each night in assorted residence halls. In
addition to these delightful spot
appearances, they scheduled three formal
performances: If you missed their medicine
.show Thursday they are also giving two
performances of "Reflections in Flight," a
blend of theater and dance that explores the
tribulations of coming of age.
Pegasus is an outgrowth of Avadon's
performing experiences of the early '70s.
during which time he hitched around the
country performing at assorted colleges and
universities. Chapel Hill was one of his stops
on that first tour; he and the campus have
mutually fond memories. With Pegasus he is
attempting to recreate some of the minstrel
spirit of the Middle Ages. The troupe, which
took its present form about a year and a half
ago. is touring the country, staying a week or
two at college campuses and spinning their
IJke true troubadours, they subsist on
monies collected after' their performances:
spectators are asked to donate w hatever they
felt the show was worth after each show. This
week they have played Ehringhaus and
James in return for potluck dinners, a
method they use at most of their &ops.
Their entertainment really began on
Monday, with the appearance of a
department-store mannequin in the Student
Union. That was Triomphe. a former
student of dance and theater at California
State and a teacher of jazz dance. She held a
pose better than most of her plastic
counterparts, and always drew a wondering
crowd. Tuesday was Avadon's turn; he lured
the unsuspecting with some rapid patter and
impeccable sleight-of-hand maneuvers.
Manipulating dice, cup and beverage as if he
were born with four hands, he announced
the program of shows: "Magic is my way of
inviting you. especially if I blow it today."
We are pleased to report that he did not.
Pegasus "has two strong associations in
literature travel and literary inspiration.
The traveling pair seeks to keep these
traditions alive with their selection of
material. The "Medicine Show." Avadon
explained, is a "big. broad, kind of a spoof"
on the traveling shows of the early 20th
century. "We like to develop shows around
the theme of travel." He is considering
circuses and gypsies as possible themes for
future tours. The original medicine shows
might have been the , forerunners of
television, but Avadon considers his show to
be similar "only in the very broadest sense."
Thursday's medicine show he called a
"bizarre array of acts" that couldn't sell
mousetraps to rat-infested farmers."
"Reflections in Flight." , the main
performance, is taken a little more seriously.
Mixing various performing arts with jazz,
and rock classical (would you believe Deep
Purple's Symphony for Rock Group and
Please turn to page 3.
Porter assesses win
by Toni Gilbert
For a weary but happy Greg Porter, the
long campaign for editor of the Daily Tar
Heel is over. It ended at 1 1:30 Wednesday
night when the final votes from Connor
Dorm were counted, giving Porter 52 per
cent of the vote and victory.-
The official tabulation gave Porter 2.725
votes. Sam Fulwood received 1.371 votes
and Mike York, 1,105.
Now he can relax, wind down and begin
work on the transition, he said Thursday,
and his long-neglected studies.
What does the new editor attribute his
"I've tried to figure out. looking back,
what we did that made me win, but I can't
isolate any one thing," Porter said.
"We just had a lot more people working
for us in the dorms," he explained. "We had
local people in the dorms passing out
campaign literature, so the voter would get
something from a friend, not just someone
who knocked at his door."
But he attributed his success to the people
who worked for him as well as to his
"We had people working who knew
politics but weren't politicos," he explained.
"We had something to say and we got it
Porter said he thinks that the Daily Tar
Heel's endorsement helped, as well as his
name being placed first on the ballot.
Early campaign organization also helped,
"1 started back in November, and bv
Christmas time we had a fairly broad
organization lined up." he explained. "We
had solidified and recruited (campaign
workers) by then, and after we came back
from vacation we were ready to roll."
Porter said the "Meet the Candidates"
meetings sponsored by the Union Current
Affairs Committee were not particularly
"The turnout (at the meetings) was
generally low and hampered the campaign
because we could have met a lot more people
in the same time." he said, adding that some
of the meetings did have good attendance.
Porter said he would not reveal the names
of his new editorial staff, but said he is
considering reorganizing the news editor's
position so one person would not be
burdened with so many responsibilitfes at
As for other changes. Porter said.
"Basically what you have to ;!o in any
situation is fit the strm-.vr of the
organization - to the peopk. not fit them
(people) into little holes."
He said that he will search for the strong
and weak points of his organization and "set
up an organization that will maximize the
strengths and minimize the weaknesses."
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The traditional cupid is a product of Roman fantasy, but this
one seems to be Greek. He is actually a participant in last
year's Chi PsiKappa Kappa Gamma Valentine's parade of
local kiddies. The parade this year will begin at 2 p.m. Sunday
on Franklin Street near the statue of Silent Sam.