Cadet Investment Group
The Cadet Investment Group (CIG) was founded in 1986 by the VMI Foundation. The group’s mission is to learn about investing. To do this, members serve as investment analysts and portfolio managers. Divided into two teams, each team has its own investment style and methodology. Team A focuses on middle-sized growth stocks while team B invests only in large capitalization value stocks. CIG is open to all 3rd, 2nd and 1st class cadets, without regard to major. Faculty advisors to the CIG are Col. Cliff West and Col. Bob Moreschi.
As of December 31, 2007, prior to the 2008 market meltdown, the combined assets were just over $243,000. In October the group hit its low point with assets declining some 33% to $160,000. That is the bad news. The good news is that in 2008 the broader market (large capitalization stocks) lost close to 40% while the middle capitalization segment lost over 37%. So, the group had a rough 2008 but not as rough as it could have been! Relative to their respective benchmarks (the Standard and Poor’s 400 Mid-cap for group A and the Standard and Poor’s 500 Large-cap for group B), both teams have performed well. By the end of 2008, assets had rebounded off the low to $167,000 (4.8%). After a rocky first quarter in 2009, the group seems to have regained its footing. For the year through April, assets are up about 5.3% while the S&P 500 Index is still down for the year by 3.3% and the S&P 400 Index is up 4.2%.
In October 2008, eight members along with the advisors traveled on the sixth annual trip to New York City. The group attended a number of informative meetings hosted by a variety of firms, including Bloomberg (financial data and software provider), Wilkinson O’Grady & Co. (a private money manager), Goldman Sachs (wealth management group), and TM Capital (investment bank). The NYC alumni again hosted the cadets to dinner.
In March 2009, two cadets and Col. Moreschi attended RISE IX (Redefining Investment Strategy Education) at the University of Dayton. Attended by over 2500 domestic and international students and faculty from over 200 colleges and universities, RISE brings leading investment professionals together with the students and faculty in an exciting and interactive learning environment. RISE offers our cadets exposure to Wall Street professional investors and portfolio managers and members of other college and university student investment clubs.