Outside of being a student, playing lacrosse and writing for insideColby, I have just enough time for a few other commitments. One of these is Mayflower Hill Capital. Started by Andy Vandenberg in his junior year at Colby, Mayflower Hill Capital (MHC) is a student run investment fund. The goal of the club is to learn how to invest by actually doing it. While taking classes on the economy, government, finance and business is great to understand frameworks, MHC gives its twenty members a chance to gain practical experience in investing.
Upon joining the club, members must buy a share and become a partner. Each week, we meet for an hour in which we have a market update and then a stock pitch. Whoever is pitching must send out a one page stock summary before presenting so everyone can gain a sense of the stock and check the company out. There is a standard PowerPoint presentation given, questions are asked and then the club decides whether to purchase a given company. In order to acquire the stock it must pass with a 66% percent approval. If passed, we set parameters on the stock and then it goes into our E-trade account the next morning. Once a stock is passed, the member who pitched the stock must remain up to date and give us weekly updates on how the stock is doing until we decide to sell.
Our investment thesis splits sixty-five percent of our portfolio into medium to long term opportunistic holdings in market leaders while thirty-five percent of our assets are invested in riskier investments that we think have a chance for large growth opportunities. While we are obviously all still in college and by no means market gurus, we are gaining hands on experience by looking at diversified assets and actually pitching stocks. The whole point of the club is to really gain fundamentals and serious interest in investing, so regardless of whether a stock does well or poorly we continue to learn as individuals and as a group.
The club is now entering its second year and we have had our first turnover in leadership. As we continue into the fall we will accept new members through an interview process. I’ll be in for one more year and then sell my shares to a new member. Hopefully the club continues to grow, and while we have no more meetings this semester, I’m looking forward to next fall already.
For more information check out www.mayflowerhillcapital.com