Author: GW Investment Institute

On May 2, 2024, the GW Investment Institute awarded $5,000 each to our top 10 performing students, selected from the 101 students across our five finance classes from this past academic year. These exceptional individuals are now distinguished as GW Ramsey Scholars and have joined 50 other GW alumni with this designation. Including this year’s cohort, GWII has awarded $300,000 to 60 GW Ramsey Scholars in total.

Thanks to the generous contribution of $1 million from Russ and Norma Ramsey in 2005, the GW Ramsey Student Investment Fund (GW RSIF) came to fruition. Managed by GW graduate students, this fund supports the GW Ramsey Scholars program through a portion of its endowment payout. Russ and Norma’s unwavering commitment ensures our scholars’ continued success and growth, guiding them toward promising careers in finance.

2024 GW Ramsey Scholars:

• Arian Agadi, B.S. Finance
• Charlotte Bell, B.S. Finance
• Richelle Charisse, B.S. Business
• Serena Colyer, B.S. Finance & International Affairs
• Elizabeth Ellis, B.S. Applied Mathematics & Finance
• Gabriela Giraldo, B.S. Business
• Nathan Nguyen, B.S. Business
• Laura Null, B.S. Finance
• Kai Pourzanjani, B.S. Finance & Business Analytics
• Yaseen Shah, B.S. Finance  

Check out the video (created by Willow Newcomb) for more info:

Last weekend, students in Prof. Song’s Applied Financial Securities Analysis (FINA 4101) class pitched their buy and sell stock recommendations for the GW Phillips Student Investment Fund. The fund was launched in 2008 and currently has over $2.9 million in assets under management (as of 4/29/2024). Check out the most recent GWII Quarterly Report for details on the fund’s performance. 

Stock Pitch Day, a significant event in Prof. Song’s Applied Financial Securities Analysis (FINA 4101) class, saw each student applying the collective knowledge they gained throughout the semester to develop an investment pitch. They utilized the GW Investment Institute Framework of BMPB: Business, Management, Price/Valuation, and Balance Sheet. After each student presented their pitch, the investment committee (the other students in the class) voted on their recommendation. To have their recommendation accepted to the portfolio, students needed to convince at least 80% of the investment committee members. 

Here is a summary from the GW Phillips Stock Pitch Days:

• 17 student pitches
• 5 student pitches accepted for investment or 4.3% 
• 3 existing positions were increased
• 2 new positions have been added to the fund

Number of pitches by sector:

• 5 in Industrials & Materials
• 4 in Consumer, Discretionary, and Staples
• 4 in Tech & Telecom
• 3 in Healthcare
• 1 in Financial Services

Number of trades by sector:

• 2 in Industrials & Materials
• 1 in Consumer, Discretionary, and Staples
• 1 in Tech & Telecom
• 1 in Healthcare

Thank you to all of the students for their hard work and dedication. A special thank you to our teaching assistant, Will Ahrens, and the three alumni speakers who spoke to our class. 

Professors Song and Lake look forward to each teaching a section of the FINA 4101 class in the Fall semester of 2024.

Introduction

During the quarter that ended on March 31, 2024, the GW Investment Institute (GWII) hosted ten industry professionals across two finance classes. GWII launched the Quantitative Investing Project, with 13 students working to create a Python model that applied the GWII Framework. At the GWII 2024 Annual Conference, we connected over 60 students, faculty, and alumni with industry professionals to discuss the intersection of finance and artificial intelligence (AI). The following commentary was written by Laura Null, a GWSB junior graduating in 2025 with a major in Finance.

Market Commentary

Prepared by Laura Null, GW ’25

The first quarter of 2024 was marked by heightened anticipation of a recessionary downturn and interest rate cuts from the Federal Reserve. However, a stronger-than-anticipated economic performance, a steady 1.6% GDP growth rate, and persistent inflation have delayed rate cuts until an anticipated hawkish pivot in June at the earliest. Further, weakened bond market yields propelled the bullish trajectory of the U.S. Equities despite diminished global economic activity. 

The first quarter of 2024 demonstrated solid economic growth, with notable performances from Energy (13.6%) and Technology (8.5%), primarily driven by optimism around the AI revolution. Additionally, a drastic increase in demand for data centers drove demand for electricity and NVIDIA’s spotlight 19.0% Q1 revenue growth. The anticipated lower interest rate environment provided significant tailwinds for Financial Services (12.5%), which is expected to continue throughout the year. Other notable performances include Communication Services (12.8%), Industrials (11.0%), Materials (9.1%), Health Care (8.9%), Consumer Staples (6.9%), and Utilities (4.6%). Real Estate was the only sector in the red, undermined by the weakened bond market and the aforementioned outlook for rate cuts.

The performance of the GWII Student Investment Funds in Q1 2024 was 15.0%, outperforming the benchmark by 4.4%. This growth was led primarily by the GW Ramsey Fund, which delivered 18.2%, outperforming the S&P 500 Index by 7.6%. The GW Phillips Fund and GW Quant Fund delivered 10.3% and 9.7%, respectively, modestly underperforming the S&P 500 Index return of 10.6% for Q1. The GW Real Estate Fund was down -2.6%, which is in line with macroeconomic trends for that sector.

We invite you to review the full report below:

During the spring semester, the GW Investment Institute launched the Quantitative Investment Project, which challenged students to quantify GWII’s Business, Management, Price/Valuation, and Balance Sheet (BMPB) framework.

For this project, 13 students worked in four teams to develop a Python-based quantitative investment model and derive insight into the GW Quant Investment Fund’s current and potential holdings. 

On April 25, 2024, teams presented their findings and shared feedback and recommendations for the project’s next version.

Here is what students said about the project:

Thank you to our students for their hard work and dedication. We look forward to continuing the project in the fall semester. 

Last week, we held VC Pitch Day in our Foundations of Venture Capital class, taught by Professor Bill Collier and supported by Teaching Assistant Yaseen Shah. Students have been building their startup companies for the last 15 weeks and were excited to present their work to a panel of esteemed industry professionals. We are grateful to the following judges for their time and feedback:

• Matt Gittleman: Investment Director, JHH vc
• Durriyyah Jackson: Director of Development, The George Washington University
• Scott Lefkowitz: Senior Associate, Las Olas Venture Capital
• Steve Ryan: Partner, Pillsbury Winthrop Shaw Pittman LLP
• Martin Sajon: CEO, Co-founder, DASCalendar

Student teams focused on building product solutions in different industries. Check out their businesses below:

BlockLoan

BlockLoan aims to revolutionize the lending landscape with its innovative platform specializing in digital asset collateralized loans. Our platform provides a centralized space for borrowers and lenders to access funding through digital asset-collateralized loans. BlockLoan aims to democratize access to capital, providing quick and legitimate funding where needed most. 

Dispatch 

Dispatch is an app-based technology startup based in Washington, DC. The company seeks to provide an intuitive messaging-based platform to facilitate their users’ process of quitting social media. 

ElderTech

ElderTech provides a tool for caregivers to record conversations with patients, acting as a passive monitoring platform. ElderTech aids in meeting the physical and emotional needs of patients and alleviating the stress involved with caring for them.

EmitLess

EmitLess is a Software-as-a-Service (SaaS) company that uses advanced artificial intelligence (AI) to address environmental challenges. EmitLess software offers a range of tools that allow urban planners and ecologists to customize the park designs according to specific local conditions and requirements, ensuring optimal functionality and sustainability.

Flavor Galore

Flavor Galore is a cutting-edge social media platform revolutionizing how young adults approach home cooking in solo living. Flavor Galore platform provides comprehensive resources tailored to empower users in their culinary endeavors. It includes an extensive database of recipes, meal planner tools, and a vibrant community where users can share their recipes and engage with like-minded individuals in cuisine-specific groups. 

Guardian Solutions  

Guardian Solutions is a business-to-business (B2B) software-as-a-service (SaaS) platform that allows automatic GPS-enabled time tracking, recording, and monitoring of employees for retail and construction businesses.

MealMatch

MealMatch is a B2C and B2B Software-as-a-Service company offering a new, innovative search engine for the online food delivery industry. By optimizing how users search for food online, MealMatch aims to put more decision-making power back into the consumers’ hands.

SeasonalSync

Seasonal Sync is a human capital services platform created to connect hospitality employees with employers nationwide via an online matching service. We specialize in seasonal businesses to maximize employment opportunities within the hospitality industry. Seasonal Sync aims to combat the crippling understaffing that plagues the hospitality industry and provide a seamless system of hiring. 

The GW Investment Institute (GWII) recently hosted an Alumni Reception in New York City. Held at Spyglass Rooftop Bar, the event brought together over 30 alumni. The GWII team extends its gratitude to all the attendees for making this gathering so memorable. We are appreciative of your continued support of GWII.

We look forward to the next opportunity to bring together our alumni for another evening of connection. Stay tuned for future events and updates as we continue to foster connections and knowledge-sharing within our community. Thank you also to GWSB Development and Alumni Relations who supported this event.

The George Washington University Investment Institute hosted the 2024 Annual Conference on March 22nd in Duquès Hall. The conference connected over 60 students, faculty, and alumni with industry practitioners and professionals to discuss the intersection of finance and artificial intelligence (AI). The conference featured opening remarks by GWSB Interim Dean Vanessa Perry, a keynote by Professor Patrick Hall, a student showcase by William Ahrens, Elizabeth Ellis, and Yaseen Shah, and a panel on the Future of Work with AI featuring GW alumni Francisco Solorzano Fakhri, Data Strategy Manager at EY, and Fiona Zhu, Senior Client Executive at Gartner. To learn more about the conference and featured guests you can access a summary below.

Next week is an exciting day at George Washington University – it will be Giving Day (April 3-4, 2024), and I’m asking for your support for the GW Investment Institute. The GW Investment Institute (GWII) teaches GW students how to invest by managing real endowment capital (managing over $9 million). Our team at GWII is dedicated to providing students with tangible skills and tools that they can leverage to advance their careers. This Giving Day, your support will provide GW Investment Institute students access to FactSet, an industry tool for financial research. FactSet enables our students to become real-world finance practitioners, but we need your help. Our subscription expires on June 30th, and we ask for your help securing $30,000 for this excellent investment in our curriculum. Every dollar counts. What do our students say about FactSet? “I currently use FactSet for my Applied Financial Securities Analysis class, and I love the platform as it allows me to have great exposure to the markets and also to data analysis. I encourage you all to keep donating for this amazing platform.” -Gabriela Giraldo, BS Business Administration & Management “I love using FactSet not only as a student analyst in the Applied Financial Securities Analysis class but also for Vice Dean Lake’s Quantitative Trading Project. FactSet is a crucial part of all of my work across multiple funds at the GW Investment Institute, and I can’t wait to see all the  contributions of students to come.” -Laura Null, BS Finance & Statistics

We’re counting on you, our dedicated alumni and supporters, to help us reach our goal and continue providing our students with resources for career success. Thank you for supporting experiential learning through the GW Investment Institute. Raise High! Rodney Lake Director, GW Investment Institute

It’s week three of the spring 2024 semester here at the GW Investment Institute (GWII), and I’m reaching out to update you on our latest endeavors, achievements, and upcoming events.

GWII offers two classes this semester, engaging 60 undergraduate students and over $2.9 million in Assets Under Management (AUM). These classes allow students to gain practical investment management experience and develop critical skills for their future careers.

I am grateful to Professor Song for teaching FINA 4101 – Applied Financial Securities Analysis for the third time. Undergraduate students in this class manage the GW Phillips Student Investment Fund, a diversified listed equity portfolio with over $2.9 million in AUM as of 1/29/2024.

Further, I’m grateful to Professor Bill Collier for teaching FINA 4104 – Foundations of Venture Capital again. Undergraduate students in this class build start-ups throughout the semester and receive feedback from venture investors and founders, then pitch their start-up ideas during the last week of classes.

Awards & Scholarships Available to GWII Students

We look forward to allocating the following awards this semester:

• Ramsey Scholars Awards – the top 10 students from academic 2024 will each receive $5,000, for a total of $50,000
• Leadership Awards – three students will receive $2,000 each for their contributions to the community at GW during the academic 2024, for a total of $6,000
• Charles Schwab Stock Pitch Awards – first place will receive $600, second place $400, and the third place will receive $250 for their stock pitch presentation, for a total of $1,250

Quarterly Report

Our students outperformed the benchmark during the 2023 calendar year; returns for GWII’s portfolios were 31.10% vs. the S&P 500’s 26.30%. Please see the most recent quarterly report as of December 31, 2023, with market commentary by GW senior Yaseen Shah.

Save the Date

• GW Investment Institute Annual Conference | Washington, D.C., March 22nd, 2024
• GWII Alumni Reception | New York City, TBD
• VC Pitch Day | Washington, D.C., April 26th, 2024
• Stock Pitch Day | Washington, D.C., April 27th, 2024

I’m thankful for all your support and look forward to the exciting developments and achievements in 2024 and beyond.

Best regards,

Rodney E. Lake
Director, GW Investment Institute

Introduction

During the quarter that ended on December 31, 2023, the GW Investment Institute (GWII) hosted an alumni reception in NYC, took a group of students to Sands Capital and Cushman and Wakefield, and held three Stock Pitch Days as well as awarded the first three Charles Schwab Foundation Awards to three students with the best pitches for a total of $1,250. The following commentary was written by Yaseen Shah, a GWSB senior graduating in 2024 with a major in Finance. Yaseen will be an Investment Banking Analyst at Clearsight Advisors after graduation.

Market Commentary

Prepared by Yaseen Shah, GW ’24

2023 concluded with a strong rally in the equity markets – the S&P 500 Index jumped (11.70%) in the fourth quarter and grew (26.30%) for the year. The main driver behind this quarter’s growth was the market’s anticipation of interest rate cuts by the Federal Reserve in the coming year. Given inflation easing closer to 2.00% (3.10%) and low unemployment (3.70%), the Fed has maintained a federal funds target rate of 5.25% and 5.50%. 

All sectors, with the exception of Energy, ended 2023’s final quarter in the green. Real Estate (18.83%) was the top-performing sector in the quarter as optimism brews for a 2024 comeback for residential and commercial real estate. Technology (17.71%) also performed exceptionally, with the Magnificent Seven (AAPL, AMZN, GOOG, META, MSFT, NVDA, TSLA) and large-cap tech names advancing in the AI space. Other notable sectors that grew were Consumer Discretionary (11.33%), Consumer Staples (5.47%), Financials (14.03%), Health Care (6.41%), Industrials (13.05%), Materials (9.68%), Utilities (8.56%), and Communication Services (11.04%); Energy (-6.35%) was the only sector in the red as oil prices declined below $80 per barrel amid geopolitical tensions. 

For the fourth quarter of 2023, GWII’s Student Investment Funds underperformed the benchmark by 40 basis points at (11.30%) vs. (11.70%) for the S&P 500 Index. However, individually for the quarter, the GW Ramsey Fund (11.80%) and the GW Real Estate Fund (16.30%) surpassed the S&P 500’s growth. For the calendar year of 2023, GWII’s portfolios outperformed the benchmark (31.10%) vs. (26.30%) for the S&P 500 Index.

We invite you to review the full report below: