Bowdoin College Finance Society by accinent


									                                          of the
                   Bowdoin College Finance Society

I. Name of Organization
         A. Polar Bear Capital Management (PBCM).
II. Nature of Organization
         A. PBCM is a student run diversified domestic equity fund seeking capital
         B. PBCM is a subsidiary organization of the Bowdoin College Finance Society
II. Purpose
         A. To provide Bowdoin students with hands-on experience in investment.
         B. To demonstrate the possibilities of the financial world.
         C. To introduce the critical mindsets at work in finance.
III. Meetings
         A. Meetings will be held once a week, in a roundtable discussion format.
         B. A different industry or sector will be covered each month.
IV. Membership
         A. Membership is open to all BCFS members.
                 1. Membership in BCFS is open to all current Bowdoin students.
V. Executive Body
         A. Student Leadership
                 1. Positions
                         a. Manager
                         b. Two Assistant Managers
                 2. Responsibilities
                         a. Manager:
                                  I. Figure-head.
                                  II. Communicate with BCFS general assembly, Board of the
                                  BCFS, BCFS Webmaster, school administration,
                                  corporations, alumni, and all necessary parties.
                                  III. Fundraising
                                           A. Use existing funds wisely and appropriately.
                                  IV. Attract and retain vibrant membership.
                                           A. Post posters, appear on BCN.
                                           B. Prepare PBCM article for the Orient.
                                           C. Use any other appropriate resource.
                                  IV. Lead meetings
                                           A. Keep discussion on track.
                                           B. Pick industry of the month.
                                  V. Organize trips and events
                                A. Organize industry related outings (e.g. channel
                                B. Organize investment competition.
                                         1. Organize school wide competitions.
                                         2. Organize competitions with other schools.
                                C. Organize other events for which there is interest.
                                D. Work with BCFS Event staff to organize events.
                       VII. Respond to directives from BCFS president and BCFS
                       VIII. Act as a board member for BCFS.
                       IX. Delegate responsibility as appropriate.
               b. Assistant Directors
                       I. Proactively Assist the PBCM Director in his responsibilities.
                       II. Respond to directives from PBCM Director.
                       III. Act as a board member for BCFS.
       3. Selection
               a. Student leaders will be interviewed by the BCFS board.
               b. Student leaders are chosen by a simple majority vote of the BCFS
                       I. Procedure for selection of BCFS Board is outlined in the
                       BCFS Constitution.
               c. Term of office for student leaders may be 1 year or 1 semester, as
               decided by BCFS Board.
       4. Removal
               a. Student leaders may be removed from office with a vote of no
                       I. ¾ of PBCM members must be in favor of removal, as
                       demonstrated by a vote.
                       II. All PBCM members may vote.
                       III. Removal must be approved by the BCFS Board.
                                A. 2/3 of BCFS Board must be in favor to approve
B. Alumni Advisory Board
       1. Composition
               a. The Alumni Advisory Board will consist of alumni with finance or
               business experience.
               b. There may be up to five Alumni Advisors.
       2. Responsibilities
               a. Alumni Advisors will guide PBCM in its daily operations and
                       I. Alumni will guide and counsel PBCM in its portfolio
                                A. Advice will concentrate on the process (i.e. thought
                                processes) rather than outcome.
                       II. Alumni will participate in conference calls or other events
                       as their schedule permits.
                       III. Alumni will provide resources and contacts as they see fit.
               b. Alumni may veto any purchase decision voted upon by the PBCM.
       3. Selection
               a. Alumni will be nominated by the PBCM director with the assistant
                               I. PBCM director will act in concert with the CPC and use
                               other alumni resources to find the best candidates.
                       b. Alumni may or may not accept a nomination.
                       c. The BCFS board will confirm nominees with a simple majority vote.
                       d. The term of office for an Alumni Advisor is one year.
VI. The Fund
        A. Voting Procedures
               1. Voting on buy and sell orders will be held at the final meeting of each
               1. Voting will be done by confidential ballot after extensive discussion
                   regarding the decision.
               2. In the event a member is unable to attend the meeting when the decision
                   is being made, the member can give one of the managers of PBCM their
                   written opinion and reasoning before the final meeting.
               3. In order to enact a buy or sell proposal, 2/3 of voting members must
                   approve the proposal.
               4. Votes for any equity will also specify whether the order is a limit or
                   market order.
               5. Managers have no supplementary voting rights over those of any
               6. Veto power can only come from a member of PBCM’s Alumni Advisory
                   Board on the basis of imprudent reasoning or hasty decision-making.
        B. Trading Rules.
               1. Managers will enact trades through an online account.
               2. All capital received will be put into an S&P 500 or Wilshire 5000 index
                   fund. When buy or sell proposals are enacted, the money will
                   subsequently move between this fund and the equities enacted upon.
               3. No margin trading and not leverage will be used.
               4. All investments must be domestic equities or ETFs.
               5. No derivative instruments will be used.
               6. There will be no short trading. PBCM will only consider companies it
                   feels can succeed.
               7. For each position, there is a minimum investment holding period of 1
               8. There is a maximum of 5 trades per week, inclusive of buy and sell
               9. A single position cannot exceed 10% of the fund.
               10. Capital gained by PBCM will only go toward reinvestments or PBCM
VII. Funding
        A. Funds are separated into three categories: portfolio operations, events and
            general operations.
        B. Funds may come from multiple sources as available including alumni, the SAFC
            and corporate sponsors.
                         1. Donors may specify the allocation of their donation by category.
                         2. PBCM may elect to use profit from portfolio operations to defray
                         operating and events cost
                                a. All use of funds must be approved by a majority vote of
                                PBCM members.
                                b. All use of funds must meet the guidelines set forth by the
                                BCFS board.
VIII. Amendments
        A. Amendments to the PBCM constitution may be made with a 2/3 majority decision
        of PBCM members and a subsequent 2/3 majority decision by the BCFS board.

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