By Lolly Frames
York College is entrusting about 15 investment-savvy students with a quarter of a million dollars from the York College pooled investment fund, to invest in the S&P 500, a stock index made up of 500 of the largest companies whose stocks either trade on the New York Stock Exchange or the NASDAQ (National Association of Securities Dealers Automated Quotations System). They will call it “The YCP Student Managed Fund” and will follow the guidelines of an “Investment Policy Statement” that was written by the students’ mentor, Dr. Pawan Madhogarhia.
The founders of the fund conducted an interest meeting on Sept. 8 in the Trading Lab of the Willman Business Center. They outlined the agenda and stated their goal. They will open and deposit the money in a TD Ameritrade brokerage account, an account that allows an investor to deposit funds and place investment orders with a licensed broker. They will assign each investor one business sector out of the 10 they have chosen, and will invest using both technical and fundamental criteria. The goal is to outperform the S&P 500, with the stipulation that they invest in only S&P 500 stocks.
The students, chosen by Dr. Pawan Madhogarhia, worked this summer to get this project off the ground. They wrote a proposal and presented it to the York College chief financial officer. They successfully ran a simulation to prove they had the skills and knowledge to run the fund.
Although four of the five students are finance majors, two of the four; Derrick Oberdick and Tanvir Hossain will be graduating in December and the other two, Jake Green and Tim DeCoursey, will graduate in the spring,; the fifth, Mike Tschudy, is an MBA student. The founders are encouraging students from all majors to participate. They have not yet set in stone the number of students that will participate, nor the manner in which they will be elected.
Their hope for the future is that the fund will do so well they will eventually be given the go-ahead to invest in a variety of derivative securities.