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Value Investing

Value Investing
Saidal Mohmand (BBA ’12, Accountancy & Finance) used LinkedIn to reach out to fellow investors and portfolio managers in the Chicago area, which is how he met Kyle Mowery, founder of GrizzlyRock Capital. A year later, Mohmand, who had known since childhood he wanted a career in finance, was named Vice President of Investment Research at GrizzlyRock.

“I was always fascinated by learning about different businesses and industries,” Mohmand said. “The decision was finalized with my internship in the research department at Greenleaf Trust, where I began to cut my teeth in the investment world.”

In fact, Mohmand says he uses his education from WMU everyday as a ‘sustainable framework’ for security analysis, or as he describes it, ‘stock picking.’

“The ‘secret sauce’ of my WMU education really is derived from the professors at the Haworth College of Business, as many of them have professional backgrounds outside of academia, which brings practicality into the classroom, real world experience,” said Mohmand. “This is really important in investing, as the real world is drastically different from the numerous academic theories taught in finance.”

GrizzlyRock Capital, which was founded in early 2012, is an alternative asset manager. They seek to invest in corporate securities that they believe have been mispriced by the market and therefore only execute on a handful of great ideas instead of a plethora of good ideas.  

As V.P. of Investment Research, Mohmand stays on top of industry information pertaining to investments in GrizzlyRock’s portfolio, in addition to investigating new potential investments..

“We’re value investors at heart,” he said. “We are looking to purchase common stock in publicly traded companies or debt instruments, such as bonds, at deep discounts to their intrinsic values—buying a dollar for 50 cents.”

GrizzlyRock is different from other investment firms in that they manage a concentrated investment portfolio, which allows for in-depth and detailed research on potential investments. GrizzlyRock combines credit analysis with equity analysis, and have an opportunistic mandate—they firmly believe the markets are inefficient and that investment opportunities can appear in different parts of the market.

As a recent graduate, Mohmand was happy to provide some advice for current students seeking a similar path, beginning with obtaining as much experience as possible while still in school.

“I started off as a teller at a local credit union, which lead to a credit internship in their business services department my sophomore year,” he said. “My junior year, I received the Greenleaf Trust Scholarship and I was presented an opportunity to intern at their institution, which introduced me to the world of security analysis and money management. I would not have achieved my goals if I didn’t work and intern for these world-class organizations.”

Mohmand encourages students interested in investing or wealth management to apply for the same scholarship, and to become involved in the student managed investment fund at WMU. He also recommends students take the level one CFA certification exam, and notes that the Western Michigan CFA society provides scholarships for students who want to sit for the exam. He notes that staying on top of industry publications is extremely important, but that students should study topics outside of finance and accounting as investing often occurs in out-of-favor industries or misunderstood businesses.

And of course, networking is key.

“I’d recommend that students reach out to alumni in their field,” Mohmand added. “Offer to grab them lunch and ask for any type of advice.”

After all, it was savvy use of LinkedIn that landed him his current position.

To learn more about GrizzlyRock Capital, please visit grizzlyrockcapital.com.