FHU's Clayton Investment Team Profits Exceed Market Average

SEPTEMBER 20, 2013

Freed-Hardeman University’s Clayton Investment Team’s performance exceeded that of the S&P 500 for the year ending Aug. 31, according to Jay Satterfield, FHU Director of Endowment and Investment Management and faculty adviser to the Clayton Team. The fund is valued at $1,282,689. It generated a 21.9 percent return. The fund has beaten the market seven out of eight time periods measured.

The portfolio was originally funded at $1 million by Jim Clayton, chief executive officer of Clayton BanCorp Inc. A team of students is selected each school year to manage the fund. They work under the guidance of faculty and industry professionals. Fund balance in excess of $1 million at the fund's fiscal year-end is distributed to Clayton annually with a portion going to the FHU College of Business Finance program. Total distribution over the past 13 months was $333,172.

The FHU finance program will use a part of their funds for a finance lab.
Finance labs are becoming popular on college campuses as real-world technologies are brought in to supplement student interaction and learning, according to Ryan Hysmith, FHU finance instructor and faculty adviser to the Clayton team. The lab will contain technology enabling student analysts to collaborate and conduct research. Stock ticker, LED panel, touch-screen televisions and video conferencing will allow the Fund's analysts to research and discuss investment opportunities.

An FHU alumnus, Hysmith joined the faculty this fall after working the last five years for PLP Capital Markets, a division of Braver, Stern Securities in Brentwood, Tenn. He was associate managing director as well as a trader and analyst for multi-million and multi-billion institutional fixed-income portfolios. In addition to his FHU degree, Hysmith holds an MBA from Tennessee Technological University. As an FHU student, he served as fund manager for the Clayton Investment Team.

Garrett Durham, a senior management major from Roanoke, Va., is the current fund manager for the investment team. Now in his third semester with the team, Durham plans a career in hospitality management and would like to develop a micro lending project in Haiti.

Other team members include Katy Holmsley, a senior marketing major from Sheffield, Texas; Mitchell Galloway, junior accounting major from Tupelo, Miss.; Eric Tompkins, senior accounting major from Chattanooga; Zach Curry, senior finance major from Fenton, Mo.; Jarlecia Jones, senior accounting major from Memphis; Emily Wilkerson, senior accounting major from Winchester, Tenn.; Adam Wiser, senior finance major from Taft, Tenn.; and Clay McFerrin, senior management major from Sparta, Tenn.

“Experience on the Clayton Investment Team is invaluable to our students,” Mark Steiner, dean of the College of Business, said. “It is a very useful tool in giving our students real world experience where they can apply the principles and skills they are learning in the classroom.”