SCM is pleased to announce that we made it past the initial screening to make it to the live presentation round at USC later in March. We will be presenting HealthEquity (HQY), a provider of innovative Health Savings Accounts ("HSAs") that allow consumers to have a greater voice in how they manage their healthcare costs. Our 2-page report is above, and we are currently working on the presentation (click on image to advance to the second page)
SCM was invited to attend the CFA LA Undergraduate Student Stock Pitch Event on March 3rd. The team watched four presentations by other students to gain an understanding of the event and to prepare a presentation for next year's competition. The company all students were to investigate in order to come up with a buy/sell/hold recommendation was Bed, Bath & Beyond (BBBY).
SCM was proud to host the lunch event for the 2017 Claremont Finance Conference. This year the topic was private equity in the changing political and macroeconomic environment. Through the Pomona alumni network, SCM assembled a panel composed of the following outstanding individuals:
• 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
SCM participated in the third annual BMGI Student Investment Pitch night on January 24th, and presented Control4 (CTRL). Control4 is a smart home automation company that powers a sophisticated platform enabling homeowners to have integrated and personalized lighting, HVAC, infotainment, security, and numerous other capabilities. The pitch team was comprised of Sterling Schwartz, Joey Scheuer, and Adrian Hui. The entire presentation is linked above, to advance slides just click on it.
Recently SCM was able to host Walter Pritchard, a chemistry major who graduated from Pomona in 1998 and currently works as a senior equity analyst at Citigroup covering global software. He provided our club with a unique perspective from someone who has held various roles in finance ranging from investment banking to equity research, all the while coming from a non-finance background. Topics discussed included the differences between application and infrastructure software, long-term trends in the industry, and the earnings reports from several companies in his coverage universe.
Today SCM had the pleasure of Skyping with Matthew Lubman, who is currently a Senior Analyst at TIG Advisors. TIG is a NYC-based merger arbitrage hedge fund with a successful track record going back several decades. Matt gave an in-depth look into his time at Pomona, his undergraduate internships, as well as his progression at TIG. The club received priceless insight into a time-tested investment strategy, including cautionary tales of pitfalls to avoid using real world investments he and the fund has made.
SCM was extremely fortunate to host Adi Mohanty, CEO of BioTime (BTX). Adi gave an introduction to his professional career path, which has been marked by tremendous success at firms like Shire and now BioTime. He answered questions regarding BTX's unique corporate structure with several subsidiaries (Asterias, Oncocyte, others), as well as what IP has been created and how it compares to firms in the same space but with solutions that are inferior to BTX's. The club was intrigued by the remarkable potential for the numerous therapies that BTX is developing, from aesthetic improvements, to cancer, to dry AMD, and beyond. To gain a deeper understanding, feel free to look through the presentation above (to advance the slides, simply click on the image)
SCM has introduced one-pagers as a way for club members to engage with the financial world and present topics to the club that are of interest to them. The above reports are examples of research done by our members
To start off the 2016-2017 school year and SCM meetings, Sterling presented Organovo (ONVO) and discussed changes to the club meeting structure. We will now be holding two meetings per week instead of four, with one meeting dedicated to skills & training (Wednesdays) and the other focused on presentations, speakers, portfolio/market updates, etc. (Sundays). After making the presentation the club decided to invest in 5,000 shares of Organovo, and to sell it's profitable stake in Diamondback Energy (FANG).
Today Michael Choi and Daniel Walker presented Edwards Lifesciences (EW) to the club. Based upon its innovation in heart valve technology, the club decided to initiate a $50,000 position into the company.
(to advance the presentation, click on the slides)
Senior Analyst Josh Kim made this wonderful presentation to SCM today, and the club voted to initiate a $25,000 investment into TXMD. To advance the presentation, click on each slide.
On Sunday March 27, SCM was very fortunate to host Mr. Patrick Lin, investment officer at Primarius Capital, a hedge fund turned family office that he founded. Mr. Lin has over two decades of finance and investing experience, having worked in banking, IPO markets, hedge funds, amongst others. The club was introduced to his background and investment philosophy, in addition to the way in which he recommends setting, planning, and achieving various goals. The portfolio Mr. Lin set up will continue to be monitored by SCM. Through his personal and business connections, Mr. Lin will coordinate with CEOs that he knows to host conference calls in the future with the club.
A few weeks ago SCM was very fortunate to host Arielle Zuckerberg (CMC '11), Partner at venture capital firm KPCB. She gave insight into her background, her career progression, and answered questions that our members had.
SCM is excited to announce a strategic partnership between the club and a friend of Pomona College, Patrick Lin. Mr Lin runs a family office in Northern California and reached out to SCM to create a portfolio that he would manage so that SCM members could learn from his investment decisions and try to understand the rationale behind each buy/sell. Initially funded with a $50,000 and five equally weighted positions, the portfolio consists of firms that Mr. Lin has built personal and business relationships with. These investments include: Mallinckrodt (MNK), Autobytel (ABTL), Sorrento Therapeutics (SRNE), BioTime (BTX), Glu Mobile (GLUU).
It was a busy week for SCM––on Monday night, Chris and Sterling presented their investment pitch in front of the Bill and Melinda Gates Investments ("BMGI") foundation, along with pitches from other 5C investment clubs. The theme of the event, millennials, influenced SCM's decision to short Fitbit (FIT). Several of the investment panelists were involved in Fitbit already, making for a good debate! On Sunday the club leaders took photos, which will be posted here shortly.
If you are interested in seeing the Fitbit investment presentation and one pager, it is posted above (click on the slide to advance)
SCM was fortunate to have Dave Wallace, Managing Director of Investments at the Pomona College Endowment, come speak to the club to discuss the inner-workings of the endowment, its weightings, and how they seek to manage risk. Additionally, the new website (this site) was unveiled to our members for the first time.
SCM has a two-fold goal: education, and alpha generation. Our weekly meetings are led by the Managing Directors and CEOs, where we discuss relevant financial news, the state of our portfolio, and how we should best position ourselves going forward. On occasion we also invite professors, alumni, and friends of the college to lecture the club and give our members greater insight into the financial world. Since the inception of SCM, our portfolio has consistently outperformed our blended benchmark (50% S&P 500, 50% Russell 2000) by focusing on smaller cap companies that have a unique market position, or larger cap firms who's story is not quite understood by analysts.
Carnegie Hall––where SCM holds its industry & general meetings