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Annual Report

Click here to view the 2022 Student Investment Fund Annual Report.

Click here to view the report archives.

LETTER FROM 2022 MANAGEMENT TEAM

The Herbert B. Mayo Student Investment Fund (hereinafter the SIF or the Fund) is a group that consists of driven TCNJ Business Students who are in their junior or senior year of college and have a passion for the stock market. This group of young men and women work together as fund managers to operate a fund worth $700,000. Managers of the Fund have the mission of expanding and growing the portfolio while continuously expanding their knowledge of the market, investing, and the economic atmosphere.

Starting with a new management team in Fall 2021, the Fund’s focus was on stable growth. The economy was expected to grow in Q3 and Q4 despite news of new COVID-19 variants such as the Omicron variant and cases still on the rise. With this in mind and with an ample cash position from the semester before, the management team aimed to buy stable, long-term positions. The Fund bought steady, well-known stocks of companies such as Waste Management Inc. (WM), Caterpillar Inc. (CAT), and Invesco Water Resources ETF (PHO) over the Fall 2021 semester. The team also liquidated its positions in Alliance Resource Partners LP. (ARLP) and JBG Smith Properties (JBGS), while selling 32 shares of Microsoft Inc. (MSFT) to maintain a cash position for future buys. The Fund saw these companies as either overpriced or lacking growth potential. Details of 2 selected transactions from Fall 2021 can be found in the “Highlights of Transactions 2021-2022” section of this report.

As management changed in Spring 2022, the Fund’s mindset shifted as well. The Fund focused on cleaning up the portfolio by seeking sell opportunities within our holdings. Macroeconomic factors such as rising interest rates, higher inflation, and world events like the Russia-Ukraine war caused management to believe the market would decline in the future. As a result, once many positions were sold, the excess cash was used to purchase stocks that are more resistant to recessions.

Management accomplished these two goals by selling 7 positions and buying 3 stocks. The Fund sold AT&T (T), Twilio (TWLO), iShares iBoxx $ Inv Grade Corporate Bond ETF (LQD), General Electric (GE), PJT Partners Inc. (PJT), Kyndryl Holdings Inc. (KD), and Organon & Co. (OGN). While there were various reasons as to why these positions were sold, some common themes were: overpriced equities, under-performing business segments, spin-off companies, or dividend cuts. Throughout this semester, management believed defensive stocks would earn a better return which caused the Fund to purchase Newmont Corporation (NEM), Brookfield Infrastructure Partners (BIP), and Alexandria Realty Equities (ARE). Details for each transaction can be found in the “Highlights of Transactions 2021-2022” section of this report.

The actions made by management from February to the present helped to maintain the value of the Fund and put it in an advantageous position if the market continues to decline in the future. Looking ahead, we want the next managers to make smart decisions to protect and increase the value of the portfolio.

The SIF is one of the best experiences TCNJ’s School of Business offers to its students. Thank you to Professor Choi, Professor Mayo, and Professor Peterson for sitting in on each presentation this past year and enhancing the learning experience. We are confident the SIF has provided us with a unique skill set that will assist us in the rest of our professional careers.

Drafted by Akshay Badade and Trevor Bell on behalf of 2022 SIF Management Team

 

 

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