The Mount Finance Club Stays Ahead of the Market

Emma Dusenbery/Class of 2009

In spite of the recent financial crisis, the investment portfolio managed by the Mount St. Mary’s University’s Finance Club’s Student Investment Advisory Panel  is looking a little brighter than the financial markets as a whole.. 

Throughout these days of plummeting market indexes, the average loss for an investor in the stock market, for this calendar year, is roughly 35 %, but the Mount’s student managed fund is only down approximately 28%. Still a significant drop but, on the whole, much better than the broad stock market. 

What’s the secret?  “We tend not to let our portfolio be dominated by investments in banks or financial services companies and we stay close to stable and consistently used goods, “says Finance Club President, Travis Laganosky ’09.

The club was created and organized in the spring of 2000. The organizing group of students was provided with $100, 000 by the Mount St. Mary’s Board of Trustees.  Within a handful of years the funds saw a great profit with the inception to date results through October of 2007 more than doubling the average returns provided by the stock market as a whole.  “The Board of Trustees and President Powell should be commended for their willingness to extend such an important responsibility to our students,” says faculty advisor, Professor Donald Butt.  The club’s net portfolio value was at its highest, $191, 000, in December of 2006.  In September of 2008, the value had dropped to $153, 000 and to its present, after recent market hits, is worth just over $130, 000. 

Companies like Johnson and Johnson, Coach Industries, and Walmart Inc. have been cornerstones of the club’s portfolio for most years since inception.  As the economy weakens, companies such as Wal-Mart gained customers and strength in economic performance.  Currently, the Club also holds ownership intereset in such firms as stock in Home Depot,, Bank of America and Lockheed Martin.  When asked why they chose to buy stock in Wal-Mart and if ethical business practice plays a part in the decision, Laganosky said, “We look at companies, like Walmart Inc., that, like most companies do make mistakes, but good companies are able to overcome these differences and move forward; the important thing to realize is how a company makes good with these errors.”

The club strongly backs their guidelines for considering company stock to purchase.  This philosophy requires that each projected candidate for investment be examined in terms of historical ethical behavior and socially responsible actions.  “It’s not just smart to look at companies with a socially responsible outlook for ethical reasons but in the long run, ethical companies that are accountable for their actions often lead to better returns for the investor,” says Laganosky.

The Finance Club strives to achieve one of the Mount’s goals of the mission statement: to encourage outside of the classroom learning.  Professor Butt adds the students have a great academic opportunity and an added reality because these profits are used by the Mount.  “The student advisory panel allows them to make very important linkages between the development of academic knowledge and the application of professional practice. The weight of knowing that your decisions affect the ability of this fund to provide future student scholarships and other support for the University brings realism to the importance of the endeavor.”

“The Mount Finance Club will forge ahead in this unstable market with a steady hand weighing risks and future investments,” says Laganosky.  But is there hope for all investors?  “It is a scary time for both the retiring baby boomers as well as our generation who will be actively searching for jobs in the near future.  At the same time, if there is available capital, it is not a bad decision to look at buying in on some low price, high value equities.”

The Officers of the Finance Club include Travis Laganosky as President, Lisa Grem as Vice President, Haley Rossiter as Treasurer, and Chris Zimmerman as Secretary.  The club works very closely with a Student Advisory Panel whose executive board is as follows: Robert Parks as Chairman, Ryan Moczulski as Co-Chairman, and Favio Osorio as Treasurer.  They are currently in the process of filling the vacancy of Secretary.