- Michigan Interactive Investments
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Michigan Interactive Investments (MII) is a business/investing/finance organization at the University of Michigan.[1] With an exclusive sixty person member base, MII seeks to teach investment strategies and educate its members via presentations, competitions and discussions.
In 2008, MII limited its membership from over 300 students to 60 students through an extensive application and interview process. The rationale for this was the following, as explained on the MII website: "[by] establishing a small, dedicated membership base, MII will refocus its goals, remaining agile and adding greater value to the community." [1]
In 2007, MII established a Michigan Not-for-Profit corporation, Michigan Interactive Investments, LTD., its parent company.
Contents
History
MII was founded in 1998 with the objective of educating members through interactive portfolio management. From 1998-2008, MII’s assets under management grew to approximately $40,000, with the portfolio primarily consisting of equity and fixed income securities. In 2002, MII became an official club of the Stephen M. Ross School of Business; however, membership is currently open to any undergraduate student at the University of Michigan. In addition to MII's primary goal of educating members on the fundamentals of investing, MII strives to offer members the following:
- First-hand investing experience and a community through which to share ideas - A forum to stay up-to-date with current market conditions - An opportunity to build leadership and communication skills - Networks in the professional world for internship and job opportunities
Beginning in Fall 2007, MII launched a "Hedge Fund" team consisting of student-members who ran various competitions against other schools and the public at large. The Hedge Fund controlled approximately 25% of the club's overall portfolio, which generally included higher risk/reward positions.
MII's interactive management strategy has led MII's portfolio to outperform major benchmark averages every year since its inception. MII’s financial success has allowed the organization to host numerous corporate and business presentations, including a 2006 MII-exclusive presentation with CNBC's Jim Cramer. Other achievements in the 2006-2007 year included the first annual MII stock pitch competition, in which twenty teams competed for a grand prize of two thousand dollars. The following year, MII brought a sensational year to a close with its 2nd annual stock pitch competition in addition to having managed the largest portfolio in the history of the club.
Since MII’s inception in 1998, our membership base has grown to over 300 members. As of the 2007-2008 year we were one of the largest student run investment clubs in the nation. In the fall of 2008, MII underwent a transformation, limiting membership to sixty passionate and knowledgeable individuals as to create a stronger, more cohesive club. This new structure provides members with more interactive meetings and increased involvement of our members.
By establishing a small, dedicated membership base, MII is looking forward to an exciting 2008-2009 year, as we strengthen our club and offer greater value to our members. As we continue our development as a professional organization, we are committed to providing our members with real world investing experience through interactive portfolio management.[2]
About
Michigan Interactive Investments offers members a unique, real world investing experience through education and hands-on portfolio management. An important goal of MII is to educate members about investing and strengthen their knowledge of financial markets. During the fall semester, members of the executive board present to the club lectures ranging from the fundamentals of equity investing to more advanced derivative strategies. Intertwined in these lectures are discussions of current events to provide members a better understanding of current economic conditions.
Members learn not only how to analyze market sectors and securities, but also learn how to effectively present their ideas to others. Each fall, MII builds a student run portfolio through a process in which members evaluate market sectors and pitch their best investment ideas. After their trade rationale is presented to the club, members vote to whether the said security should be added to the MII student run portfolio.
Michigan Interactive Investments is unique in that it manages a student run portfolio that is completely funded by MII members. Each member upon entry into MII furnishes a $100 portfolio deposit which is refundable at the end of each academic year. Each year MII looks to grow the size of its portfolio through sound investment decisions. Since MII is a student organization at The University of Michigan profits made throughout the year are either reinvested into the following year’s portfolio or are used to support operations and special events throughout the year.
Current 2008-2009 Member Class Standing
Freshman Sophomore Junior Senior 20% 33% 27% 20% Current 2008-2009 Member School of Enrollment
58% Stephen M. Ross School of Business
35% College of Literature, Science & the Arts
7% College of Engineering
Events
Michigan Economic Forum
Over the past few years, the United States has witnessed the downturn of Michigan’s economy. The Michigan Economic Forum was an event hosted by Michigan Interactive Investments in conjunction with the Michigan Economics Society to provide a platform to discuss and explore potential solutions to Michigan’s current economic problems. The forum featured engaging panel discussions and several distinguished guest speakers such as Peter Hooper, chief economist, Deutsche Bank Securities; Charles Evans, director of research and senior vice president, Federal Reserve Bank of Chicago; John McElroy, WWJ News Radio auto analyst and host of Autoline Detroit; and John Austin, vice president of the Michigan State Board of Education and nonresident senior fellow at the Brookings Institution; and Steven Szakaly, economist at the Center for Automotive Research.
To view the Michigan Economic Forum press release, please click here [2].
MII Chicago Trip
In an effort to expand on MII’s mission to teach its members about finance, MII organizes a trip for its members each year to visit financial institutions in Chicago. Club members have the opportunity to tour the Chicago Federal Reserve Bank, the Chicago Board Options Exchange, and the Chicago Mercantile Exchange. This is a great chance for members to learn about America’s banking system and to gain an inside look at how markets are created and securities are traded from the floor of two of the world’s premier financial exchanges.
BP Trading Simulation
In an exclusive event for MII members, BP Integrated Supply and Trading brought their trading equipment from their Chicago office to host two, hour long trading simulations. This was a great opportunity for members to get a feel for the fast-paced world of commodities trading. The software and equipment brought by BP to the event is the same as that used by BP to train their traders.
MII Annual Stock Pitch Competition
After a year of debating about the stock market, MII felt that the best way to end the 2006-2007 year was with Michigan Interactive Investments' Inaugural Stock Pitch Competition. The competition consisted of three person teams pitching a single stock for the chance to take home a grand prize of $2,000. Judges for the event consisted of two top Wall Street analysts and a hedge fund trader named as one of the “30 Best Under 30” in the world. In the end, the winning stock was Taiwan Semiconductor, pitched by V. Zhang, B. Chung, and B. Yiu.
The first stock pitch competition, which took place in the spring of 2007, was a great success. In the spring of 2008, MII brought a sensational year to a close with its 2nd Annual Stock Pitch Competition sponsored by Ameriprise Financial. After another year of debating about the stock markets, twenty teams once again showcased their investing skills for the chance to take home prize money of over $2,000. In the end, the winning stock pitch was FTI Consulting.
MII is looking forward to continue and expand this event into MII's First Intercollegiate Stock Pitch Competition during spring 2009.
Intercollegiate Stock Pitch Competition
MII will be hosting its first annual Intercollegiate Stock Pitch Competition on March 20 & 21, attracting teams from universities around the country. In addition to the competition, the event will include two prominent keynote speakers, discussion panels, and a BP trading simulation.
MII and UM
While MII is closely affiliated with the Ross School of Business, it is an organization open to students from all disciplines across campus.
Distinguished Alumni
- Nicholas Benson, Belvedere Trading, LLC
- Jason Beyer, Karsch Capital
- Daniel Bracheld, JPMorgan Securities
- Josh Cipkala-Gaffin, J.P. Morgan & Co.
- Brandon Diersch, Microsoft Corp.
- Sam Ditter, Moelis & Company
- Mike Garcia, Moelis & Company
- Justin Killion, Grosvenor Capital Management
- Eric Medina, Barclays Capital
- Ken Michalzuk, McKinsey & Co.
- Kelsey Morgan, The Carlyle Group
- Logan Perez-Gurri, Goldman, Sachs & Co.
- Evan Plisner, Royal Bank of Scotland
- Adam Rubin, Brandes Investment Partners LP
- Kristina Simmons, lululemon athletica
- Jeffery Segal, BreakingViews.com
- Paul Sinkevics, Citigroup
- Thomas Steiner, McKinsey & Company
- David Suska, University of Michigan
- Weijia Tong, Credit Suisse
External links
References
- ^ MII (2008). "Michigan Interactive Investments, Ltd.". http://www.miiclub.org. Retrieved October 28, 2008.
- ^ http://miiclub.org/history.asp
- ^ http://miiclub.org/board.asp
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