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Mutual Fund News

ME AND MY MONEY

Special to The Globe and Mail

Will Van Nest, 22

Occupation

Finance major at McMaster University's DeGroote School of Business

The (club) portfolio

Includes shares in Silver Wheaton, Brookfield Asset Management, Bank of Nova Scotia, Enbridge and Dundee REIT.

The investment club

Will Van Nest is the current president and CEO of an investment club open to McMaster University students (MAC Investment Club). Every September, shares in the club are sold to students at a price of $250 each and the money ($58,250 in 2012) is invested in stocks. In March, the stocks are sold and the proceeds are distributed to club members.

"Our average annualized return over the club's five-year history is 6.3 per cent," reports Mr. Van Nest. The investments are auxiliary to the primary purpose of the club, which is "to educate our members and focus on developing a deeper understanding of capital markets research," he adds.

How they invest

The executive first determines which industries are most likely to prosper over the club's four- to five-month investment horizon. For the selected industries, research teams pitch approximately 20 companies to the membership, of which 10 to 15 are accepted through a voting process.

Best move

The club gained 17.6 per cent on Bombardier Inc. stock this year, thanks to a series of contract wins by the company.

Worst move

Surge Energy stock slid 35.7 per cent after it was purchased because the company's Valhalla South site experienced an unplanned outage.

Advice

"One unique aspect of the investing club ... is the collaborative environment.

"Due to the size of our club and the number of individuals contributing to our research, we get differing opinions and perspectives, which result in better stock picks."

Want to share your strategies?

E-mail mccolumn@yahoo.com

© 2007 The Globe and Mail. All rights reserved.

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