The Cadet Investment Group (CIG) was founded in 1986 with $200,000 provided by the VMI Foundation. The group’s mission is to invest in stocks. To do this, members serve as investment analysts and portfolio managers. Divided into two teams, each team has its own investment style and methodology. Team A focuses on large capitalization value stocks while team B invests only in middle-sized growth stocks.
While traditionally CIG was solely composed of EC/BU cadets, in recent years the group has sought to attract cadets in other majors. Currently, thirteen of the CIG’s thirty-four members are not majoring in EC/BU. The faculty advisors to the CIG are Col. Cliff West and Lt. Col. Bob Moreschi.
From its inception until August 2005, each team began the academic year with $100,000 in cash, respectively. At the completion of the academic year, each portfolio was liquidated so that the following year’s teams could begin with an all-cash portfolio. Beginning in August 2005, so as to provide a more realistic investing environment, the teams were allowed to maintain their portfolios indefinitely – in effect keeping their gains but absorbing any losses. As of 31 March 2007, team A had $112,162.25 and team B had $103,220.02.
In recent years the CIG has traveled on an annual educational trip to New York City. In February, thirteen cadets spent two nights in NYC. The group attended meetings hosted by Credit Suisse, TM Capital, Goldman Sachs, and Citigroup. The NYC alumni also hosted the cadets to a dinner.
CIG is grateful to the VMI Foundation for their support and generosity that allows cadets who have an interest in investing the opportunity to experience an out-of-the-classroom education.