University of Southern Maine

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USM School of Business Students and Alumni Form Investment Club

March 26, 2008

While millions of dollars are being pulled out of the stock market, a group of University of Southern Maine students and alumni have formed an investing club, which held its first meeting earlier this month.  Despite daily reports on a worsening economy, the club has already realized a small capital gain.

The University Investment Club of Southern Maine, LLC, was organized by USM Associate Professor of Finance Bert J. Smoluk, to provide real-life investing, educational and social opportunities for USM School of Business students and alumni.  By limiting membership, the organization now has about 28 dues-paying members, the optimal size for such a club, Smoluk explained.

Club members are required to pay a $15 yearly administrative fee plus $50 monthly dues, which have been pooled with $2,500 of seed money donated by Smoluk.  About a half dozen teams have been formed, which will review and present investment opportunities at club meetings.  After presentations, members vote on which securities to invest in.  Among the teams up and running are the Green (environmental); Technology; the Financial; Consumer Goods; and Bio-technology; and the Federal Reserve Committee. 

Smoluk explained that members can withdraw their investment at the end of any quarter, and the club will meet monthly year round except for July and August.  He was pleasantly surprised at the response to the e-mail invitation sent to students and alumni, explaining that he heard from former students he hasn’t spoken to in years. 

The club has already realized a small capital gain in their initial investment.  “The best time to invest is when the market is down,” explained Smoluk. “The only place it can go is up.”

For more information, see the club’s Web site at http://www.uinvestclub.com or contact Bert Smoluk at 780-4407, mailto:hsmoluk@usm.maine.edu

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