Presentation Transcript

1. Undergraduate Student Managed Fund Fall 2013 Report December 5, 2013
2. Fund Managers Officers: Lead Manager: Alexander Anisimov Portfolio Manager: Eric Bourassa Secretary: Lina Posada Managers: Robert Bailey Thomas Blankemeier David Boudreau Michael Cox Joseph Grieco Duston Hodgkins Matthew Mastrogiorgio Student Managed Fund Fund Managers Fall 2013 Presentation
3. Agenda Investment Objective and Philosophy Investment Process Economic Outlook Portfolio Overview Student Managed Fund Agenda Fall 2013 Presentation
4. Investment Objective & Philosophy Objective Outperform the S&P 500 Learn to analyze as value investors Philosophy Search for undervalued securities based on estimation of intrinsic value compared to current market price Style Bottom-up approach Student Managed Fund Investment Objective & Philosophy Fall 2013 Presentation
5. Industry Managers Basic Materials: Matthew Mastrogiorgio Consumer Discretionary: Robert Bailey, David Boudreau Consumer Staples: Thomas Blankemeier, Duston Hodgkins Energy: Alexander Anisimov, Michael Cox Financials: Thomas Blankemeier, David Boudreau, Joseph Grieco Healthcare: Eric Bourassa, Robert Bailey, Alexander Anisimov Industrials: Matthew Mastrogiorgio, Lina Posada Real Estate: Eric Bourassa, Michael Cox Transportation: Michael Cox Technology: Joseph Grieco, Duston Hodgkins Student Managed Fund Industry Managers Fall 2013 Presentation
6. Investment Strategy Search for companies with: High ROE & ROIC i.e. BBBY Sustainable Barriers to Competition i.e. AXP Consistent Return to Shareholders i.e. XOM Strong Business Models i.e. DIS Student Managed Fund Investment Strategy Fall 2013 Presentation
7. Investment Tools Student Managed Fund Investment Tools Fall 2013 Presentation
8. Investment Process Student Managed Fund Investment Process Fall 2013 Presentation
9. Sector Allocation Student Managed Fund Investment Tools Fall 2013 Presentation
10. Strength of the US Economy With the Dow Jones and S&P at record highs, and interest rates low – Are we really as strong as we appear? Participation Rate seems to be dropping in lockstep with Unemployment Rate – Economic recovery may not be as strong as we think The Unemployment rate 2007 – 2013 YTD Source: Bloomberg LP Student Managed Fund Economic Outlook Fall 2013 Presentation
11. Federal Reserve’s Balance Sheet The growth of the Fed’s Balance Sheet The economy is slowly recovering, but is not at a self-sustaining level where the Fed can taper or halt Quantitative Easing Fed has grown its balance sheet from $1 trillion to $3.5 trillion Student Managed Fund Economic Outlook Fall 2013 Presentation
12. Macroeconomic Outlook 2013 YTD GDP Growth rates 0.5% 0.6% 1.6% 1.6% 2.1% 3.3% 4.3% 7.8% 4.1% Student Managed Fund Economic Outlook Fall 2013 Presentation
13. Interesting Holding- American Express Purchased 1,350 shares on November 11, 2013 for $80.84 per share As of November 29, we have realized a 6.13% gain on AXP Closed-loop model Spend-centric model Attractive buyback & dividend programs Student Managed Fund Interesting Holding Fall 2013 Presentation
14. Interesting Holding - NVR Purchased 80 shares on November 6, 2013 for $945.00 per share As of November 29, we have realized a 2.63% gain on NVR Single-family homebuilder Profitable for the past sixteen years Unique lot acquisition strategy Student Managed Fund Interesting Holding Fall 2013 Presentation
15. Portfolio Approach Seek to take positions at various percentage increments depending on a variety of factors 5% or under position Strong fundamentals Fairly valued Carry more risk 5% or larger position Safe/predictable Strong upside potential Strong downside protection Very undervalued Student Managed Fund Portfolio Approach Fall 2013 Presentation
16. Equity Breakdown Student Managed Fund Portfolio Breakdown Fall 2013 Presentation
17. Portfolio Breakdown Student Managed Fund Portfolio Breakdown Fall 2013 Presentation
18. Portfolio Performance Undergraduate SMF portfolio has underperformed the S&P 500 by 1.08% (108 BPS) Student Managed Fund Portfolio Performance Fall 2013 Presentation
19. Portfolio Performance Student Managed Fund Portfolio Performance Fall 2013 Presentation
20. Individual Stock Performance Student Managed Fund Portfolio Performance Fall 2013 Presentation
21. Risk Management Rigorous screening and analysis process Purchased half of stocks analyzed or pitched Diversification across sectors to avoid aggregation risk Stop-loss Focus on long-term performance, not concerned with short-term volatility Student Managed Fund Risk Management Fall 2013 Presentation
22. Lessons Learned Lessons Record high market conditions Corporate social responsibility Moving Forward Maintaining strict valuation standards Corporate social responsibility initiative Company price tracking Student Managed Fund Lessons Learned Fall 2013 Presentation
23. Acknowledgements Pat Terrion Jeff Annello Dr. Chinmoy Ghosh Dr. Michel Rakotomavo Laurel Grisamer Paul DeSalvo Investment Advisory Board IAB Advisors UConn Foundation Board Student Managed Fund Acknowledgements Fall 2013 Presentation