 | | | | Investment Club Raising CapitalThe market may be down, but the energy in the College of Business Investment Club is nothing but up. The college and approximately 40 students are on a drive to raise $50,000 for the club to invest in the stock market.
“Students are learning how to develop a portfolio strategy, how to analyze data, how the trade process works and how to protect their portfolio,” said Ray Brooks, associate professor of Finance and club advisor. “Students are interested because it is a year-round learning experience, not just one class.”
To enhance that learning experience, students hope that soon they’ll be able to trade real dollars instead of their current “paper” portfolio. So far, more than $11,500 has been received for the program. Alumni instrumental in jumpstarting the fundraising effort include Tod Perkins, managing director, Credit Suisse First Boston; Martin Tobias, venture partner, Ignition Partners; and Robert Zagunis, principal of Jensen Investment Management.
According to Brooks, the Investment Club will operate differently from clubs at other schools. “Our students will have a stake in raising the money and have a more vested interest in what is going on,” he said. “Students will be involved in making contacts, giving presentations to potential donors, and making their case to the Investment Club board. It is a much more entrepreneurial experience and one that readily relates to the investment world.”
Most of the 120 or so investment clubs across the country manage their school’s Foundation dollars. The Investment Club, however, by raising and managing their own funds, are directly connected to the donors and must demonstrate their money management skills to the donors, much like the real money managers. Long term goals for the fund include helping pay for club operations: trips to businesses, leadership conferences, the finance banquet, student scholarships and more.
Currently, the class is divided into teams focused on 10-12 industries. Students research their recommendations and meet weekly. Monthly, teams present in front of the student board to make a case for buying or selling a particular stock, supporting their recommendation with numbers, industry stats, and research on the company.
“We measure our success against the S&P 500,” said Daniel Nelson, Investment Club student board member and President of the Finance Club. “Our goal is to out-manage the professionals.” |
