SCM Year in Review 2016-2017

During the 2016-2017 school year, SCM saw a large influx of new members from all the Claremont Colleges. With a mailing list in excess of 300 associated students, engagement with the club has never been higher. Our weekly meeting structure underwent significant change, as Wednesday’s now focus on educational workshops and Sunday’s on stock presentations, market updates, and general announcements. Beyond our two weekly meetings, the club has made a concerted effort to reach out to alumni in the finance community. This has taken many forms, including Skype calls, in-person meetings, and hosting them at the Claremont Finance Conference. By bridging the gap between Carnegie Hall and the worldwide presence of our alumni, SCM is able to provide our members with an understanding on how to apply the knowledge obtained from classes and the club into life after college.

In the fall semester, we hosted Adi Mohanty, CEO of BioTime (BTX), a publicly traded biotechnology company. He provided a hands-on operational understanding in managing a scientific enterprise, a viewpoint which is often overlooked by investors. In October we had a video conference with Matthew Lubman (‘05), a senior analyst at event-driven, merger arbitrage hedge fund, TIG Advisors. Towards the end of the fall semester we were fortunate to have Walter Pritchard (‘98), a senior equity analyst at Citigroup covering software, visit the club to give a presentation.

The spring semester got off to a busy start with the Bill & Melinda Gates’ Investments (“BMGI”) Student Pitch Night in January. The SCM team presented a long position in Control4 (CTRL), a smart-home automation firm. The group was lead by SCM’s fund manager, Sterling Schwartz, as well as senior analysts Joseph Scheuer and Adrian Hui. Since the day of the pitch, CTRL is up more than 50% in less than three months, and has far outpaced both the market and the other investment proposals by CMC’s SIF, Harvey Mudd, and Scripps’ SIF.

In February, SCM hosted the lunch event for the annual Claremont Finance Conference. This year’s event was centered around a private equity panel comprised of Pomona alumni: Mark Holdsworth (PO '87) – Co-founder of Tennenbaum Capital Partners & his family office,  Holdsworth & Co, Matt Thompson (PO '96) – Senior VP at Skyview Capital & Kravis Fellow, Brian Morrison (PO '08) – Associate at Oaktree Capital, Zeeshan Hyder (PO '08) – Vice President at First Beverage Ventures.

Continuing the club’s desire to attend more investment conferences and events, several of our members were invited to attend the CFA LA Student Investment Pitch Competition in order to gain an understanding of the CFA organization and to prepare for the 2018 event. Additionally, in March the club was invited by USC’s Value Investing Group to participate at their annual pitch competition. At the event SCM pitched HealthEquity (HQY), a provider of innovative healthcare savings, investing, and spending platforms for individuals.

In short, it has been a growth year for SCM on a number of fronts. The engagement with the larger student community and the investment performance of our recommendations have been impressive. The analytical, creative thinkers at the 5Cs have demonstrated their investment abilities, and continue to learn, apply, and achieve alpha.

As stewards of a most generous gift by our benefactor, Marcel Houtzager, we continue to recognize the rare opportunity we have been provided, something that we do not take for granted. Likewise, I would like to thank  Pomona’s Economics Department for allowing us to use their space to host our meetings, our faculty advisors, and all of our club members. It has been an incredibly rewarding year for SCM, a trend I am very excited about continuing next year.

 

Sincerely,

Sterling Corbett Schwartz

Fund Manager, SCM


www.sagehencapital.com