1. What are the goals of SEED and can you tell me how the organization got started?
The technical goal for SEED is to beat our S&P 500 benchmark by 100 basis points. However, the most important goal of the organization is to extend the financial education beyond the classroom. Since students are able to invest real money, the information learned in the classroom is much easier to understand. The unique experience offered by SEED also helps tremendously when students hit the job market, as employers love to interview candidates with real world experience.
2. How is the organization structured?
We have two CEOs who lead the organization (my co-CEO just graduated, however, so I’m currently the only CEO). They are responsible for leading weekly meetings, organizing group trips, and keeping the entire vision of SEED on the right track. We then have seven area managers who are specialized in a particular sector, such as technology or financials. Finally, we have analysts, who follow our current equity positions as well as recommend new positions for our portfolio. The analysts answer to their area manager, who answer to the CEO. Additionally, we have a CIO, who performs the trades and advises the area managers.
Click this for a picture: http://tinyurl.com/y8vfly9
3. Ben, can you tell me about yourself? How did you get involved with SEED and become President?
I first heard about SEED when I visited Virginia Tech as a senior in high school. After speaking with one of the advisors, I made it my goal to get into SEED. Being able to invest real money has made everything I’ve learned in the classroom that much more relevant. As a sophomore, I started out as a technology analyst. Once I discovered the doors that SEED could open, I realized it would only be my loss if I didn’t take advantage of my chance to lead one of the largest student-run portfolios in the nation. I have really enjoyed leading the group this year, and am proud of our accomplishments so far. Although time demanding, it has been my most rewarding experience at Virginia Tech.
4. What investment-related websites do you recommend college students use?
Google Finance or Yahoo Finance are good for general stock numbers. Bloomberg.com and the Business/DealBook sections of nytimes.com are two sites I would recommend reading. Equally important are general news sites, such as CNN or Fox News. For example, it’s critical that our healthcare team keeps a close eye on the developments in America’s new healthcare system in order to stay ahead in their sector.
5. Where do you see the best investment opportunities right now?
We have been quite cautious recently. We took some profits on our big winners and have also written covered calls on positions we like, but are approaching their target prices. Healthcare could be the next opportunity if one is knowledgeable about the forthcoming changes. Finally, there are some consumer discretionary stocks that have gotten thrown out with the bath water and have quite a bit of upside. This is quite usual after a recession.
6. Where can students go to get more information about SEED or to reach out to you?
Our website is available at www.vtseed.com, and I am always happy to answer questions at bklauder@vt.edu.
