History

The Mountaineer Investment Club

In 1994 two relatively new finance assistant professors, Dr. Don Cox and Dr. Delbert Goff, started looking for ways to provide students with hands-on, real-world investment experience. Their initial thought evolved into the idea of forming a student investment club where members would put money into the portfolio and the club would decide how to invest the money. Shortly thereafter, Dr. Cox and Dr. Goff formed the Mountaineer Investment Club. At the time, there was no evidence of other active student investment clubs in the country. Therefore, there was no pattern for the professors to follow, and they had to anticipate potential pitfalls—such as students not having much money to invest, as well as the constant turnover of students. These problems were addressed by forming a partnership allowing students to leave their money in the club after they graduated as well as allowing others to invest in the club. This structure enabled the portfolio to grow beyond what would have been possible if only the current students were allowed to invest funds.

The Mountaineer Investment Club officially began in the Fall Semester of 1994, and was very successful in many respects. While student participants came and went over the years, there was always a core group of very dedicated students with a strong interest in investments. The club provided students with an excellent opportunity to learn about investments and to apply that knowledge to making investment decisions.

Along with the club's success there were some problems. Most student members elected to leave their funds in the portfolio when they graduated, which enabled it to grow. However, the number of partners in the club created major problems with recordkeeping and tax filings. In addition, most of the individual investments were very small ($50 to $75), and the size of the portfolio limited the ability to fully diversify the holdings.

Establishment of a Student-Managed Investment Fund

Problems encountered with the structure of the Mountaineer Investment Club prompted Dr. Goff and Dr. Cox to transition from an investment club to a student-managed investment fund. In December 1998 the Mountaineer Investment Club's portfolio was liquidated and members were asked to contribute their investment to the fund. Beginning with this initial $2,400, Dr. Cox and Dr. Goff then started raising money to build the fund.

The biggest financial supporter of the fund was Dr. Elbert V. Bowden. Dr. Bowden, a long-time faculty member at Appalachian, liked the concept of a student-managed investment fund and made several significant financial contributions. In January 2000, Dr. Cox began teaching portfolio management principles to the first group of students, enabling them to begin making investment decisions and purchasing stocks.

Although Dr. Bowden was the single largest financial contributor to the fund, his greatest contribution came from allowing his name to be used to support the fund. In September 2001, the "Elbert V. Bowden Student-Managed Investment Fund" was created, and Dr. Bowden's name, excellent reputation, and many contacts were used to raise approximately $75,000 for the fund. Dr. Bowden passed away in 2004, but his legacy as a devoted educator lives on through the work of the Bowden Investment Group.

Dr. Cox continued to teach the students until being appointed Associate Dean of the Walker College of Business. In August 2004 Dr. Goff took over the responsibility for teaching the students managing the fund and came up with the idea to name the group of students the "Bowden Investment Group." This unofficial name quickly became very popular and the reputation of the "BIG" began to grow.

Dr. Goff continues as the primary instructor for the Bowden Investment Group and was joined in the fall of 2010 by an adjunct faculty member, Mr. David Thompson. Mr. Thompson, a retired General Partner with WEDGE Capital Management, brings a wealth of business and investment experience. Together, Dr. Goff and Mr. Thompson are able to provide the students with an unparalleled educational experience – an experience that goes beyond finance and investments and includes professional development and teamwork, as well as personal and professional accountability. Today the Bowden Investment Group is considered one of the premier student groups in the Walker College of Business.

 Walker College of Business

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Contact

Faculty Advisor:
Dr. Delbert Goff
ASU Box 32058
Room 3066 Peacock Hall
Boone, NC 28608-2089
Phone: (828) 262-6188
goffdc@appstate.edu

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