A Million-Dollar Milestone for Student-Led Investing at StFX

Xaverian Capital has reached a major milestone, surpassing $1 million in assets under management and marking a significant achievement for the student-run investment fund at StFX. Co-presidents Paul Eades and Isaac Hierlihy, both fourth-year finance majors, are helping lead the fund as it continues to grow while giving students hands-on experience in financial markets and investment management. Made up of approximately 30 students from all four years of study and a range of academic backgrounds, Xaverian Capital is a student-managed investment fund that focuses on investing in companies with strong fundamentals and long-term growth potential.

The fund's primary goal is to grow its endowment, which helps support scholarships, research and other initiatives on campus. Reaching $1 million in assets under management is a significant milestone for the team, reflecting not only the fund's financial growth but also the consistency of its student leadership over the past six years. “A lot of credit goes to the people before us,” said Eades. “Every year, executive positions roll over in terms of who is in charge. The fact that we've been able to do so well every year for the past six years shows the quality of the people that have been a part of it.”

The fund's performance has been a point of pride for its members. While maintaining a student-led approach to investment decisions, Xaverian Capital has performed increasingly well. “Annualized returns are at 12 per cent, which is better than the market on the average year, and the best part is it's all student-led,” said Hierlihy. “We have an advisory board that pushes us in the right direction, but all the decisions are made by students. Students pitch the stocks that we own and cover them.” “We buy companies for the long term,” said Hierlihy. “We aim to mirror the weightings of the TSX within a certain range. Strong performers in the market this year have been in financials and energy, along with a recent rally in technology stocks following a challenging period related to A.I. shocks. We tend to let our winners ride."

The team also aims to maintain a diverse portfolio that reflects different areas of the economy, allowing members to identify opportunities across industries rather than concentrating their investments in one area. “We are choosing stocks we have a lot of confidence in,” Hierlihy said. “We try and capture a lot of different aspects of the economy, as well as the businesses we invest in.”

However, managing an investment fund comes with challenges beyond selecting successful stocks. For Eades, finding the right balance between the fund's day-to-day operations and its financial performance has been an important learning experience. “Balancing the operational side and performance was one thing that we had to figure out, and have gotten a lot better at, because the two go hand-in-hand,” said Eades.

Eades emphasized that learning is an ongoing process and that the fund prioritizes members' development alongside its financial success. “For new members, there may be a little bit of imposter syndrome going on. We try to focus on communicating to our newer people that you learn as you go.” The goal is to help members build their skills throughout their time with the fund and prepare them for careers after graduation. By providing practical experience and opportunities to develop industry knowledge, Xaverian Capital hopes to connect students with competitive career opportunities while helping them gain confidence in their abilities.

Beyond financial performance, the team also considers the ethical implications of its investment decisions. Members examine company leadership, management practices and business activities when evaluating potential investments. “We look at ethics as a matter; we factor it into performance,” said Eades. “We look at our management boards, of the companies we own and what they're involved in, as well as the activities they undertake. We see ethics and performance going hand-in-hand.” Hierlihy commented that the fund is continuing to explore ways to strengthen its approach to responsible investing. “We're always trying to get more involved in that area as well. That's been a priority, looking more into sustainability and doing some analysis on the companies we hold.”

Looking ahead, Xaverian Capital is focused on increasing its visibility within the Schwartz School of Business and encouraging more students to consider joining the fund. “There's so many different majors out there that have something to contribute as well,” said Eades. “Even someone that is involved in policy, for example, since government policy is so important in the business environment, or a computer science major that could build models.”

To support the fund's continued development, the team has also made changes to its internal structure. Xaverian Capital has divided its operations into nine sectors, with members responsible for stock pitches and coverage updates within their assigned sectors. The new approach is intended to encourage students to develop a deeper understanding of the companies they follow and maintain consistent coverage as leadership transitions between academic years. By strengthening its structure and expanding its membership, the fund hopes to build on its success while creating more opportunities for students to gain practical experience.

For Eades and Hierlihy, what distinguishes Xaverian Capital is the level of responsibility and independence it offers students. Members are not simply learning about investments in a classroom; they are actively researching companies, presenting their findings and making decisions that affect a real portfolio. “We believe that we bring an edge,” said Eades. “There is no other fund out there in Atlantic Canada, or beyond really, that has the level of freedom or control over real money like we do.”