Harvard Investment Club aims high

There are lots of investment clubs at universities across America. Would you expect better returns from a club at Harvard, which serves as a feeder to big Wall Street institutions?

The Harvard Crimson offers a peak at the Black Diamond Capital Investors, which has 25 members, some of whom have $25,000 worth of skin in the game.

"These members make up the general partnership, which makes joint decisions on investment strategies and shares equally both the rewards and the losses."

Black Diamond also has an advisory board consisting of Wall Street and academic world. The group is nothing if not optimistic about its own talents.

"Like the hedge funds it emulates, Black Diamond is a riskier investment than some of its peer groups, a risk which members hope will be rewarded."

The group is aiming for a 30 percent return on its investment, which will be difficult. Obviously, a lot of members will be heading to Wall Street upon graduation, or at least careers in finance, which can be a great thing. I remember the day when investment clubs were primarily buy-and-hold clubs. Anything beyond that was anathema. How times have changed.

It will be interesting to see how the fund fares and what sort of opportunities it seeks. MBSs may be a decent bet right now.

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