Home


The Colby Student Investment Association (CSIA) is a student-run club which manages its own equity portfolio. Founded in 2007, thanks to the generous donation of a Colby alumnus, the CSIA relies on the in-house research and talent of Colby students to beat the indices. The CSIA operates three divisions: Trading, Strategy, and Portfolio Management. The mandate of the club is to educate Colby students interested in the capital markets and to develop and strengthen the network between Colby students and alumni in the financial world. 
 
Since its founding, another alumnus as well as parents of recent alumni have contributed additional money to the club to enable the creation of two new portfolios, the Mule Challenge and the Wall Street Prep course offerings. Recently, the club has completed working on the "Mule Challenge", a mutual fund portfolio competition with a Colby alumnus in the mutual fund industry. With continuous updates and modification, working on this fund gives member hands-on experience in asset allocation and managing portfolios. To strengthen alumni relationships, the club has invited a number of speakers to campus and introduced members to a wide range of career tracks related to finance. Since founding the club, the CSIA has grown to a membership of over 150 students. Many Colby alumni are working in bulge bracket/boutique investment banks, management/economic consulting firms, and in asset management. 
 
Our Portfolio
 
We manage a $100,000 equity portfolio with a long-term strategy in mind when choosing stocks. Purchases are limited to $3,000 to reach at least 30 holdings to diversify the entire portfolio. Members gain first-hand experience in equity analysis and portfolio management that a professional portfolio manager would do as part of the investment process. Our three divisions, Portfolio Management, Trading and Strategy collaborate and perform different parts of the research and valuation to identify potential stocks that fit into the overall portfolio strategy.
 
Generally, the Strategy group reviews macroeconomic trends and identifies high-growth sectors. Portfolio Management incorporates such suggestions to our portfolio and recommendation further research in certain industries to the Trading Division. This process focuses on the balance of our holdings in addition consideration on industry growth independently.  The Trading Division performs in-depth analysis on a selective number of companies and pitches them as potential investments to the club at biweekly town hall meetings.
 
From this process students with any range of finance and banking knowledge are able to participate and learn about Asset Management. Students can also extrapolate their knowledge in finance and certain skill sets such as public speaking and equity valuation to careers in Sales and Trading and Investment Banking. Students who have no background in finance are able to gain hands-on experiences and find out their career passion. Regardless of one's knowledge in finance when joining the club, CSIA offers an educational environment for everyone. If you are interested in learning more about our divisions, please visit "Division.
 

The Mule Challenge

The Mule Challenge is a mutual fund portfolio worth $100,000 under the supervision of CSIA. In contrast to the CSIA's equity portfolio, the Mule Challenge portfolio requires members to select mutual funds under given conditions and focus on asset allocation. Starting from January 1, 2012, this portfolio will be evaluated twice a year by the donor, and he will either contribute or withdraw $5,000 from the portfolio for philanthropic activities. We aim to provide students with real-world experience on asset allocation research and money management. Our current mutual fund portfolio breakdown is:

35% Domestic Large Cap
FMI Large Cap (FMIHX)
Life Performance (Founded in 03): 6.43% | SD: 18.51
http://fundresearch.fidelity.com/mutual-funds/summary/302933205

30% Domestic Small Cap
Janus Triton (JATTX)
Life Performance (Founded in 05): 10.80 | SD: 21.75
http://fundresearch.fidelity.com/mutual-funds/summary/471023549

10% Int'l Dieversity Equity
Fidelity Diversified International Fund (FDIVX)
10 Year: 5.79% | SD: 23.02
http://fundresearch.fidelity.com/mutual-funds/summary/315910802

10% Investment Corporate Debt
PIMCO Investment Grade Corp. Debt Fund: PBDDX
Life Performance (Founded in 05): 7.37 % | SD: 6.78
http://fundresearch.fidelity.com/mutual-funds/summary/722008505

5% T-Bills
Fidelity Government Income Fund (FGOVX)
10 Year: 5.54% | SD: 3.26
http://fundresearch.fidelity.com/mutual-funds/summary/316172105

5% Int'l Bond
PIMCO Global Bond (Unhgd) CL D (PGBDX)
10 Year: 8.02% | SD: 9.49
http://fundresearch.fidelity.com/mutual-funds/summary/722005253

5% Cash

Requirements: loss ratio <1; rated by Morningstar at least 4 star

Benchmark: 50% iShare Barclays Aggregate Bond Index & 50% S&P 500 

Maintaining our two separate portfolios will give members a skill set that can be applied to both sell-side (investment banking) and buy-side (investment management), making our members more well-rounded and thus appealing a larger group of employers.

Wall Street Prep

For those interested in a career in investment banking, marketing, credit rating, financial risk management, or any other branch in the financial services, the Colby Student Investment Association along with the materials provided by Wall Street Prep aim to prepare students to compete for opportunities in the financial industry. Wall Street Prep provides students with the technical and practical skills needed to be successful. These skills include: financial statement modeling, valuation modeling, comps modeling, excel training, and necessary steps required to do well in an interview.

Having received this experience will make students more marketable to employers; in addition, many prestigious business academic institutions also encourage students to acquire this preparation including: Harvard Business School. The length of this course is two days, eight hours each day. The original cost of attending is $200 per person but members of the Colby Student Investment Association attend at no cost.

Although Colby College is primarily a liberal arts college, its students obtain enough preparation to compete against other prestigious business schools. In fact, many Colby alums manage to find themselves in the top financial institutions including but not limited to: Barclays Capital, JP Morgan, Goldman Sachs, Moody’s, Bank of America, and Morningstar. Wall Street Prep provides an excellent opportunity to develop understanding or knowledge of financial skills that may help students land jobs in financial services. 


       



Comments