SAINT MARY’S COLLEGE
INVESTMENT GROUP
Managing the
Responsible Investment Fund
EXECUTIVE TEAM
 Simon Tryzna- Founder & President
 Senior
 B.A. Business Administration, Finance Concentration; B.S. Economics; Math
Minor
 Honors Program Member
 President of SEBA’s Dean’s Undergraduate Advisory Board
 Former Finance Intern at Northgate Capital, an Alternative Assets firm
 Currently interning at Summit Wealth & Retirement Partners, a Wealth
Management Firm
EXECUTIVE TEAM
 Amanda Kopp- Co-Founder & Controller
 Senior
 B.S. Accounting & Business Administration
 Secretary of SEBA’s Dean’s Undergraduate Advisory Board
 Audit Intern at KPMG Summer 2014
 Will be working at KPMG as an Audit Associate after graduating from Saint Mary’s
EXECUTIVE TEAM
 Max Teranen- Portfolio Manager & Vice President
 Junior
 B.S. Economics, Focus in Finance & Sustainability
 Economics Club President
 Member of SEBA’s Dean’s Undergraduate Advisory Board
 Former intern at Merrill Lynch
 Currently interning at Lincoln Financial Advisors
CREATION
 Original goal was to create a “hands-on” product, something tangible and a place
where students can take what they learned in the classroom and directly apply it
to a real world experience.
 Idea to create something like this was floating around for the last three years, but
it really started to take place towards the end of Spring semester 2013.
 Over the last year and a half, we have met with numerous professionals and
solicited a significant amount of advice in order to create this group.
 Primarily modeled after the University of Oregon Investment Group and the
Investment Club at Puget Sound.
RESPONSIBLE INVESTMENT FUND
Mission:
Saint Mary’s College Investment Group is a student-run organization. Its mission is
to enhance student’s financial literacy and investment capabilities while promoting
social responsibility through managing the Responsible Investment Fund.
 Privately funded $125,000 portfolio, actively managed by students
 The Responsible Investment Fund primarily invests in the publicly traded stocks
of companies that are deemed to advocate and practice responsible business
SAINT MARY’S COLLEGE
INVESTMENT GROUP
 Open to all majors and class levels.
 Ultimate goal is to learn together about investing and financial markets.
 Members will research companies on their own and present their findings to the
group, along with their investment recommendation.
 Our members will learn how to preform a stock valuation in hopes of finding
companies currently undervalued in the stock market.
 Students manage account with limited direction from advisory panel
STRUCTURE
 Meet once every two weeks
 Meeting Format:
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Opening remarks - President
Portfolio Update - Portfolio Manager
Market Update / Review
Macro Economic Discussion / Market Forecasting
Active Member Presentations
Voting on investments (if necessary) - Controller
Final Thoughts - President
GOALS
 Our goals for this group are simple:
 We want all students to have the ability to learn first hand about Financial Markets.
 We want the students to learn to collaborate with one an other on a project that they
can bring up at their interviews.
 With a large amount of companies beginning to focus on Responsible Investing, we
want Saint Mary’s students to have an edge to get jobs at those companies.
 We want to see if we can do all of these things while generating positive returns for our
portfolio.
ORGANIZATION
 Investment Panel (Five Responsible Investment Professionals)
- Oversee the proposals that we come up with as a group and help to guide the
group to achieve it’s goals
 Executive Team
- Organize & facilitate funding, meetings, & group organization.
- Assess fund proposals
 Members
- Sit in / vote on proposals
- Learn about investing & make proposals
MEMBERSHIP
 Active Members:
 Members who attend a majority of the meetings
 Members that frequently valuate companies and present their findings to the Group
 Members who have the ability to vote on the presentations
 Passive Members:
 Members who attend occasional meetings
 Primarily motivated by learning about Financial Markets but not actively participating in
the Investment Group
INVESTING OVERVIEW
 What is a stock?
A type of security that signifies ownership in a corporation and represents a claim
on part of the corporation's assets and earnings.
 What is Investing?
The act of committing money or capital to an endeavor with the expectation of
obtaining an additional income or profit.
STOCK CLASSIFICATIONS
Blue Chip: Nationally known company who pays a consistent dividend
Growth: Company that is expected to have above average increase in earnings
Cyclical: Heavily effected by Market Indicators (Fluctuates with market)
Counter Cyclical: Moves in opposite direction of economy
Defensive: Resistant to normal business cycles
Large Cap: Market Capitalization = $10 billion and up
Mid – Cap: Market Capitalization = $1 - $10 billion
Small Cap: Market Capitalization = $1 billion or less
SECTOR CLASSIFICATIONS
 In addition to diversifying our portfolio by stock size and movement with respect to the
market, we will also take a look at each sector in order to study them in depth and get a
sense of the different companies in each sector and how each sector differs from one
another within the financial markets.
 Different sectors:
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Basic Materials
Conglomerates
Consumer Goods
Financial
Healthcare
Industrial Goods
Services
Technology
Utilities
RESPONSIBLE INVESTING
The objective of this fund is to grow its initial investment through socially
conscious, sustainable or “green” investments, while keeping an ethical approach in
seeking financial return and social good.
Approach:
Negative Screening and Positive Investing
-Excluding socially irresponsible companies while including responsible ones.
 Definition of what constitutes a “responsible” investment has many definitions.
Ultimately, our goal will be to do due diligence on all investments and make sure
we deem the companies responsible with respect to their environmental impact,
their corporate governance, and their overall social responsibility.
ASSESSING RISK
Since this is an extremely aggressive portfolio by consisting of 100% equity
positions
Risk is Minimized by:
 Diversification across many different sectors and asset classes
 Using high dividend yielding companies to generate a more predictable income
stream
TARGET ASSET ALLOCATION
 40% Blue Chip/Large Cap
 30% Growth/ Small - mid Cap
 10% Defensive
 10% Speculative
 10% Emerging & Foreign Markets
VALUATION
 Goal is to find companies that we, as Group members, deem undervalued in the
Financial Markets
 This can be done by looking at the last three year’s of a company’s financial
statements, seeing trends, and combining historical data with current news to
project future free cash flows.
SAMPLE VALUATION - BLACKBERRY
PROJECTED GROWTH - BLACKBERRY
PROJECTED CASH FLOWS - BLACKBERRY
VALUATION
VALUATION
 Based on our estimates, we believe that Blackberry should be trading at around $11.66
 These are bullish estimates as we believe in the leadership of Blackberry and that the worst is behind the
company.
 Stock price was at a daily high of $11.17 shortly after the release of their second quarter earnings, but has fallen
to around $9 during the recent sell-off.
 One of the goals we will attempt to do as a Group is to look at macro economic signals and see if we can
purchase equities on a discount
REPORT
 In addition to the valuation spreadsheet, our members will be tasked with doing a brief
two page report, summarizing their findings.
 These reports will be published online.
 Good way for students to show potential employers the quality of work they have done.
FINAL THOUGHTS
 A lot of the basic infrastructure for the Group is in place.
 Aiming to hold an informal meeting to discuss logistics on October 27th.
 Initial goal is to invest in a handful of equities by December so we have a portfolio
heading into 1Q15.