Georgetown University’s Newspaper of Record since 1920

The Hoya

Georgetown University’s Newspaper of Record since 1920

The Hoya

Georgetown University’s Newspaper of Record since 1920

The Hoya

Investment Groups Weather Downturn

As the economy begins to show signs of recovery, student investment groups at Georgetown have continued to do well despite last year’s recession.

Ted Kallergis (MSB ’10), chief executive officer of the Georgetown University Student Investment Fund, said [the fund was somewhat adversely affected by the economic downturn](, but that it has been a learning experience for all involved.

“The fund, like most professional funds, lost value as we entered into the recession. However, we managed to beat the market throughout the recession due to our conservative investing and timely divestitures and acquisitions of key holdings,” Kallergis said. “While performance is one of our key goals, education is another at GUSIF and this recession has served as an excellent, albeit painful, educational tool.”

GUSIF is a student-run money-managing fund that invests in U.S. equities. The fund buys stocks and avoids riskier, more speculative methods. The Alumni Association and the university’s endowment invest in GUSIF.

Kallergis said that GUSIF has made various changes in the past year to address and meet the challenges posed by the recession. It recently added a macroeconomic team to their fund – the Economic Coverage Team – which, according to Kallergis, reviews economic events, educates GUSIF members on economic indicators and writes internal reports twice a month.

Brian Harbour (MSB ’10), vice president of communications for GUSIF, said the fund has recovered for the most part.

“We’ve pretty much come back with the market,” he said.

According to Harbour, however, GUSIF is divided over whether the economy is experiencing a full recovery or a small upward trend in the midst of a deeper recession.

“It’s really hard to tell,” he said. “Some of us think there might be a plateau or another dip.”

The Georgetown Real Estate Investment Club has not been affected at all, according to GUREIC President Kuai Yu (MSB ’11). The group does not directly invest; instead, it receives funding from the Student Activities Commission.

“The GUREIC focuses on the fundamentals of investing in the real estate industry through an assortment of programs such as speakers, workshops, field trips, networking forums, et cetera” Yu said.

Yu said the recession has been a learning experience for the club.

“The recession has been very instrumental for us to study because times like these are goldmines for far-sighted investors who, by familiarizing oneself with the patterns and signals, can predict the next property burst and capitalize on it,” Yu said.

GUREIC Vice President Lee Gross (MSB ’11) said the recession’s impact has been felt indirectly.

“The recession has devastated our focus of the club, which is real estate, but has not hurt our club directly,” Gross said.

“Obviously, the bubble that has formed in the real estate market has been felt across the nation, but things seem to be easing up a bit,” Gross said. “We are very optimistic looking forward and look to take advantage of the many opportunities out there.”

Representatives of the Georgetown Collegiate Investors could not be reached for comment.

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