NETWORKING OPPORTUNITIES IN FINANCE

By Chris Abou Naoum

KCM provides a unique opportunity to become part of an investment community and get a preview of what a full-time career in finance would entail.

King’s University College offers a range of exceptional clubs, and one of the most prominent among them is King’s Capital Management (KCM). KCM began in 2017 as a virtual trading group, a community composed of motivated students that has evolved into one of the largest clubs at King’s. KCM is a student-run investment fund that enables students to collaborate with likeminded individuals to manage a portfolio and invest capital in the North American financial markets. The club's goal is to maximize returns while minimizing risk by investing a pool of alumni capital. KCM provides a unique opportunity to become part of an investment community and get a preview of what a full-time career in finance would entail. Additionally, the club offers workshops with King’s professors to enhance members’ financial capabilities.

KCM convenes weekly meetings where members discuss companies that they believe will perform well in the markets. and conduct comprehensive financial analyses to determine whether the company should be included in the portfolio. KCM takes a valueoriented approach by purchasing companies that appear undervalued compared to their intrinsic value. The club's hands-on portfolio management experience provides valuable knowledge and expertise for those seeking a career in finance. Furthermore, KCM focuses on providing its members with tools and resources by hosting networking sessions and offering various career opportunities to break into high-level finance. Overall, KCM is an exceptional club that offers students a chance to gain practical experience and knowledge in the financial world, enhancing their career prospects.

One of the top students at King’s University College, Arturo Zarate, is co-president of KCM. Arturo is currently in his fourth year in the honours specialization in Economics with a minor in Analytics and Decision Sciences.

I asked Arturo the following questions regarding KCM:

What makes KCM a special club here at King’s?

“In the long run, the goal is to become a launching pad for all King's students interested in breaking into finance. We believe this is a very valuable opportunity for first- and second-year students to learn about jobs in finance. In addition, they can benefit from our program to help them attain their dream jobs. As a result, we have built a strong community where people can come and meet others who have similar interests, which will further assist them in gaining access to a career in finance.”

Why did you want to be president?

“I am deeply passionate about capital markets, and specifically equities. I wish to share this passion with all our members and help them achieve all their goals in the industry and grow the investment community at King’s.”

What are the top holdings for KCM?

“Cineplex and Invesco S&P 500 Equal Weight Index are our top holdings, and we are having a close look at Payfare Inc., Ferrari, Uber, and Microsoft.”

Why are equities the primary asset class for KCM?

“We look at equities as part of a business and we can find the intrinsic value of a business and understand the macroeconomic effects on it far easier than we can with credit securities, currencies, and commodities. We believe it’s also a good starting point for our members to learn valuation methods and key concepts in investing.”

Is there any sector you’re bullish or bearish on for the portfolio?

“Our fund takes a top-down approach; we look at energy, staples, and health care as bullish sectors with a rising risk of a recession, while avoiding technology and discretionary stocks. However, our main approach is to look for good businesses, and if we see one in a bearish sector we will still invest long, for example, with Microsoft (‘MSFT’ on the NASDAQ) and Ferrari N.V. (‘RACE’ on the NYSE).”

How is the current monetary policy by the US Federal Reserve and the Bank of Canada going to affect the portfolio?

“Although inflation is slowing down, high inflation is not going anywhere. With jobs data as well as consumer spending, the Fed is on a hawkish mission to address inflation with more aggressive interest rates. Since some investors are hoping for a soft landing, we believe the possibility of a recession is mispriced. Therefore, we keep a close eye on the latest data releases and stocks of interest for possible opportunity gaps.”

What are your views on KCM in the long term?

“Our vision is to help all members gain the skills and knowledge necessary to break into a career in finance. This encompasses investment banking, sales and trading, equity analysts, venture capital, private equity, and corporate finance. We hope to build a community where students get a hands-on approach through a student-led investment fund, workshops, and career planning programs. We hope our alumni will eventually advise the next generation and build a true stepping stone for all students at King's interested in the finance industry.”

What do you want the members of KCM to take away from the club?

“We want them to have fun, develop a passion for financial markets, find their dream job and guide them through the process of getting there. I truly believe KCM can set the example moving forward that King’s clubs have a lot to offer.

"King’s Capital Management offers an enriching experience to every student at King’s, regardless of their prior knowledge of finance. Whether someone has been passionate about investing since childhood or has limited exposure to finance, KCM provides a supportive environment for growth and development. The club offers invaluable resources such as workshops and networking opportunities that can assist members in any career path they choose. Personally, being a part of KCM was one of the best decisions I made during my undergraduate journey. The financial knowledge I gained and the incredible people I met within the club made a significant impact on my personal and professional growth. Joining KCM can provide a platform to learn, share ideas, and connect with like-minded individuals, offering students the opportunity to thrive and flourish during their academic journey.”