innovate arkansas

The Arkansas economy fared better than most during the most recent recession. But does it represent a good investment? Walton Business College graduate Josh Hopkins believes it does - so much so that last year he founded Natural State Advisers to sponsor and manage the portfolio of his Natural State Economic Growth Fund.

What sets Hopkins' fund apart is its focus on the economy of Arkansas and sole investment in public companies with what Hopkins considers significant operations in the state.

Hopkins said his open-ended 40 Act mutual fund further sets itself apart by offering many investment options to the public that simply aren't available to most people.

"Natural State Advisers seeks to offer many investment options that aren't available to the public as a whole," he said. "This differs greatly from the current objectives that most financial advisory firms have. Rather than targeting a set client list of high net worth individuals, we will strive to serve as much of the population of the state and region as possible through pooled investment funds."

Hopkins is in the final stages of registering his Little Rock-based fund with the Securities & Exchange Commission - approval was expected by the end of January, and his Web site - investnaturally.net - was recently launched.

To move his fund from concept to reality, Hopkins approached Innovate Arkansas, the joint public/private entrepreneurial empowerment organization that helps nudge tech-based startups in the state onto the road to success.

"I went to Innovate Arkansas with simply an idea," he said. "Their startup experts helped me to craft a functioning business plan with realistic market estimates. They provided me with coaching on the startup process that prepared me for everything from investor meetings to the startup legal processes. There is no doubt in my mind that without Innovate Arkansas, Natural State Advisers would still be an idea in the back of my mind."

In Hopkins' idea, Innovate Arkansas saw much potential.

"In working with Natural State Advisers, we see a plan to focus a mutual fund offering on the existing publicly traded companies that make Arkansas great," said IA adviser Jeff Amerine, an officer with the University of Arkansas Technology Licensing Office. "We really think the idea of having a mutual-fund investment vehicle focused on Arkansas gives potential investors in the state a chance to keep their money in Arkansas, which will in turn drive high-wage job creation and economic growth. The best companies that do business here regularly outperform the S&P as a group, so it just makes good sense for Arkansas to have a mutual fund with this focus."

Like many Arkansas entrepreneurs, Hopkins found that waffling investors and unstable markets made for a tough environment. Regardless, Hopkins said, now is the best time to get started.

"Incentives are numerous, markets are steadying, and opportunities abound in the current economic landscape," he said. "The startup environment in Arkansas is strong, but still very unorganized. As groups like Innovate Arkansas begin to grow and achieve recognition across the entire state, entrepreneurial ventures will flourish. There is a wealth of individuals who have the capital and the will to participate in startup ventures in all corners of the state."

Hopkins believes the state should continue to focus on incentives for knowledge-based businesses, as championed by Gov. Mike Beebe and the Arkansas Economic Development Commission.

"Gov. Beebe has already done a great job working with the AEDC to create incentives for entrepreneurs across the state," he said. "I feel that a focus on incentives for knowledge-based businesses should be the next step to increase the number of jobs available in the higher pay tiers. The next initiative should be to retain top talent from in-state secondary education institutions.

"The Little Rock Regional Chamber of Commerce is already moving forward with a group known as Create Little Rock that is centered on retaining the top business talent in the state. As this catches on and other metro areas follow suit, Arkansas firms will be able to compete on the level of any national or international firms in their respective industry."

Through Natural State Advisers, Hopkins intends to help keep that focus on Arkansas firms.