Draft:Patrick Henry College Investment Group

• Comment: zero independent reliable sources and just blatant advertising. Theroadislong (talk) 20:57, 23 November 2024 (UTC)

• Comment: no independent sources? Theroadislong (talk) 20:06, 23 November 2024 (UTC)

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Patrick Henry Investment Group

The Patrick Henry Investment Group (PHIG) is a student-led organization at Patrick Henry College that manages an $80,000 investment fund. It offers students, especially those majoring in Economics and Business Analytics, real-world investment and leadership experiences. Members conduct thorough equity research with mentorship from alumni, professors, and financial professionals. PHIG’s portfolio includes investments in real, publicly traded companies, providing students with the opportunity to learn financial stewardship and develop leadership skills in the field of finance. The group aims to prepare students for careers in the financial sector.

Structure

This program at Patrick Henry College is governed by a clearly defined oversight structure to ensure proper administration and accountability. The roles and responsibilities are distributed as follows

• Charter Approval Authority: This responsibility lies with the Board of Trustees, the President of Patrick Henry College, and the Dean of Academic Affairs. They are tasked with granting approval and ensuring the program aligns with institutional goals.
• Program Ownership and Oversight: The Director of Economics & Business Analytics is responsible for overseeing the program and ensuring its strategic direction and operations are managed effectively.
• Investment Fund Oversight: The Vice President of Finance monitors and supervises the financial operations and investment-related activities of the program.
• Student Accountability and Supervision: The PHIG President ensures that students participating in the program adhere to guidelines and maintain accountability for their actions.
• Student Mentorship and Guidance: Volunteer Investment Advisors provide mentorship and guidance to students, helping them gain practical insights and expertise in relevant fields.

Current Board

Elijah Mendoza (President) - Elijah Mendoza is the Chief Financial Officer of the Patrick Henry Investment Group. He joined PHIG in 2022 as a freshman to discover that there was so much to learn that he didn’t yet know about investing. This summer, he worked at Equestly, an e-commerce and app development startup. His role is to oversee PHIG at all levels: People, Pitch, and Portfolio, and ensure PHIG members are aligned with the strategy.

Nathan He (Chief Executive Officer) - No further information provided.

Ronen Wyrick (Chief Research Officer) - Ronen, our Chief Research Officer, has been a PHIG member since his freshman year.  He loves the community aspects of the club and the technical and leadership development it makes available to students. This last year he interned at Patomak Global Partners, a consulting firm in Washington DC, and he looks forward to working as an investment banking summer analyst with Wells Fargo in 2024.

William Storz (Chief Financial Officer) - William Storz currently serves as PHIG’s Chief Financial Officer. His favorite part of being a member of the executive team is having the opportunity to help others grow and succeed. Last summer, William further honed his technical expertise as an intern at JPMorgan Chase, working within the corporate and investment banking division. In his spare time, William enjoys weightlifting, playing racquet sports, and actively managing his personal investment portfolio.

Roles + Model

Junior Analyst

The Junior Analyst role within the Patrick Henry Investment Group (PHIG) is a highly demanding and prestigious position that provides invaluable experience for students pursuing careers in finance, investment management, or related fields. Junior Analysts are central to PHIG’s operations, contributing directly to the management of the group’s stock portfolio and assisting in the development of strategic investment decisions.

Analyst Training Program (ATP)

To attain the role of Junior Analyst, candidates must first complete PHIG’s rigorous Analyst Training Program (ATP). The ATP serves as the gateway to PHIG membership and is designed to provide participants with a foundational understanding of financial analysis, equity research, and valuation techniques. The program emphasizes practical skills such as financial modeling, discounted cash flow (DCF) analysis, and comparative valuation, equipping candidates with the technical tools necessary for success. In addition to technical training, the ATP also fosters critical thinking and teamwork through collaborative projects and case studies. Completion of the ATP is a significant milestone that demonstrates a candidate’s readiness to take on advanced responsibilities within the organization.

Responsibilities of a Junior Analyst

Upon completing the ATP, candidates who excel are invited to join PHIG as Senior Analysts. In this role, individuals are placed on specialized teams tasked with conducting in-depth research and preparing stock pitches for the investment group’s portfolio. Each team focuses on a specific sector or industry, such as energy, technology, or consumer goods, allowing analysts to develop expertise in targeted areas. Senior Analysts are responsible for:

1. Equity Research: Conducting thorough analyses of publicly traded companies, including reviewing financial statements, assessing industry trends, and monitoring macroeconomic factors that may impact stock performance.
2. Valuation Analysis: Using advanced financial modeling techniques, including DCF and multiples-based approaches, to assess the intrinsic value of potential investment opportunities. Analysts are expected to identify undervalued stocks with strong growth or income potential.
3. Team Collaboration: Working closely with other Junior Analysts and Senior Analysts to compile research findings, synthesize data, and develop comprehensive investment theses.
4. Stock Pitches: Preparing and delivering detailed stock pitch presentations to PHIG’s leadership and broader membership. These pitches include a company overview, financial analysis, risk assessment, and a recommendation to either buy, hold, or sell. The ability to clearly communicate complex financial ideas is a critical skill for success in this role.

Senior Analyst

The Senior Analyst position within the Patrick Henry Investment Group (PHIG) represents one of the most advanced and prestigious roles available to students in the organization. Senior Analysts play a critical role in the group’s investment process by conducting high-level equity research, managing junior analysts, and contributing to strategic decisions for the group’s stock portfolio. This position is designed for students who have demonstrated exceptional skills and leadership potential within PHIG.

Candidates are evaluated on their ability to tackle complex investment scenarios, synthesize large amounts of data, and deliver actionable recommendations. The program culminates in a rigorous examination overseen by faculty members, who assess each candidate’s readiness to take on the responsibilities of a Senior Analyst. This includes their technical proficiency, communication skills, and capacity to lead and mentor junior team members. Only those who meet PHIG’s high standards are promoted to Senior Analyst.

Responsibilities of a Senior Analyst

Senior Analysts are entrusted with leading investment research teams, managing junior analysts, and guiding the development of stock pitches for potential additions to the portfolio. Each Senior Analyst is assigned a sector or industry to oversee, allowing them to specialize in areas such as technology, healthcare, energy, or financial services. Besides the responsibilities of a Junior Analyst, their responsibilities include:

1. Team Leadership: Senior Analysts lead teams of junior analysts, delegating research tasks, ensuring high-quality output, and fostering collaboration. They act as mentors, helping junior members develop technical skills and a deeper understanding of investment strategies.
2. Advanced Valuation Techniques: Leveraging sophisticated valuation methods such as discounted cash flow (DCF) analysis, sensitivity analysis, and scenario modeling to determine the intrinsic value of companies. Senior Analysts ensure that their teams’ findings are accurate and well-supported.
3. Mentorship and Training: Acting as role models and mentors for junior analysts. Senior Analysts are responsible for ensuring their teams develop the technical and professional skills necessary to succeed within PHIG and in their future careers.

Faculty Oversight and Performance Evaluation

To maintain accountability and high standards, Senior Analysts are regularly evaluated by faculty advisors. Faculty members review the quality of research, effectiveness in team management, and the overall success of their teams’ stock pitches. This additional layer of oversight ensures that PHIG’s Senior Analysts continue to meet the organization’s expectations for excellence.

Portfolio

Overview

The Patrick Henry Investment Group (PHIG) manages a student-led stock portfolio focused on mid- to long-term investments. As of mid-2023, the portfolio's primary holdings include Enbridge (ENB) and Keysight Technologies (KEYS), alongside a cautious approach to cash management. Enbridge was selected for its strong dividend yield, extensive pipeline network, and perceived undervaluation based on discounted cash flow (DCF) analysis. Keysight Technologies was identified as a promising investment due to its role in electronic measurement solutions and its strong financial performance, including consistent revenue growth and high margins.

The portfolio faced significant challenges in 2023, including a total loss on Signature Bank (SBNY) due to its collapse during a broader banking crisis. This prompted a reassessment of the group’s research and due diligence processes, with a renewed emphasis on understanding industry dynamics before targeting specific companies.

Cash management has been a cornerstone of PHIG’s strategy, with 85% of the portfolio held in cash or equivalents, including short-term U.S. Treasuries. This conservative stance reflects concerns about economic uncertainty and a potential market downturn. The group plans to reinvest in Treasuries and gradually expand equity holdings as market conditions stabilize.

PHIG’s investment philosophy prioritizes reducing downside risk while seeking growth opportunities through rigorous analysis and robust financial modeling. Investments like Enbridge and Keysight Technologies reflect a strategic focus on industries with strong fundamentals and long-term growth prospects.

As a student organization, PHIG also emphasizes professional development. Members gain experience through roles such as analysts and team leaders, with alumni securing positions in investment banking, private equity, and corporate finance. PHIG continues to refine its structure and processes to provide educational value and achieve sustainable financial performance.

Current Portfolio (as of FY 2023)

Stock	Shares	Cost Per Share	Price (7/8/22)	Net Loss/Gain	Market Value
Nike (NK)	32	$125.24	$107.86	($556.03)	$3,451.52
Thermo-Fisher (TMO)	5	$550.00	$581.93	$159.63	$2,909.65
Signature Bank (SBNY)	13	$221.94	$180.51	($538.59)	$2,346.63