General Body Meeting 09.01.11. Agenda. Introduction to MICC How to Get Involved Future Events Macro Update Portfolio Update. MICC Organization. Introduction to MICC. $50,000 Mutual Fund Dates back to 1998
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General Body Meeting 09.01.11
Agenda Introduction to MICC How to Get Involved Future Events Macro Update Portfolio Update
MICC Organization
Introduction to MICC $50,000 Mutual Fund Dates back to 1998 Created through merger in Spring 2010 between two largest investment clubs at the time Focus on Membership Education
General Body Meetings Every Thursday 5:15PM – 7:15PM (Malott 251) 5:15PM – 6:15PM: Education Series 6:15PM – 7:15PM: General Body Meeting Club announcements News updates Investment pitches and decisions
Executive Board Introduction President – John Yoshida Vice President – Miles Moen Portfolio Manager – Terence Hu VP of Public Relations – David Kim Senior Analysts
Sector Groups Consumer – Andrew Schrichte Energy – Mihir Patel Financials – John Troncoso Healthcare – Eric Hoffman Industrials – Peter Cui Macro – Zach Peskin Media & Telecom – Dan Han Quant – Ali Yazdi Real Estate – Derek Creadore Technology – AleksZvorinji
How to Get Involved?
Opportunities for Members Junior Analyst Program Newsletter Team Education Series MICC Events
Junior Analyst Program Description Work closely with senior analysts in covering a sector Pitches to enhance our portfolio Pay close attention to news within your sector Apply online: cornell-micc.com/jobs/ Notifications will be made early next week
Newsletter Team Description Write about a topic relevant to financial markets or investing that you’re interested in Be published in a newsletter that is distributed throughout campus (or even internationally!) Write blog posts for our website Talk to David Kim (sk852)
Education Series Primary vehicle of learning basic concepts of investing and financial analysis Selected Topics What is a stock? Presentation skills Introduction to modeling
Future Events
Future Events Cornell Undergraduate Stock Competition NYSSA Investment Research Challenge Various Recruiting Events NYC Trip Social Event: Poker?
1st Annual CUSC Intercollegiate stock competition Competition dates: 9/20 – 9/21 First Prize: $3,000. Second Prize: $1,500 Cornell internal competition 9/10 Presentation Send email to StockPitchCU@gmail.com by 9/2 Include name, major and year
CFA Institute Investment Research Challenge International research competition Written report + Presentation Team-based First round: Mid-late January Workshops throughout the Fall Semester Contact John Yoshida (njy3) if interested
Macro Update
Zach Peskin
Global Macro Update Fed plans to keep interest rates low until 2013 Growth stalls in the U.S. Debt Ceiling debate/downgrade/super-committee Fiscal stalemate Europe debt/growth crisis Austerity in Europe Consumer confidence at lowest levels since Carter administration
Global Macro Update Global fixed income rally Yield on 10yr US Treasury notes dropped below 2% Negative real rates Sell-off in global equity markets Gold rally (bubble?) Continued weakness in housing and financial industry Sharp pullback in Oil (WTI/BRENT divergence) Dramatic increases in volatility
Portfolio Review
Terence Hu
Post Summer Portfolio Review MICC’s performance over the summer was affected by the macro economic environment Comparison of past three month returns MICC return: -5.37% Dow Jones return: -8.02% S&P 500 return: -9.83%
CYB (Chinese Yuan ETF) Investment Thesis Diversification benefits Chinese Yuan definitely undervalued; momentum of appreciation Political pressure to appreciate Yuan due to instability caused by inflation Stable store of value; no downside risk Chance of one-off Yuan appreciation
CYB Summer Performance Return: 0.3%
Reasons to sell CYB Although original thesis holds true, Chinese government likely to maintain slow and steady appreciation Poor tracking performance High opportunity cost
VXX (VIX ETF) Investment Thesis Convenient hedge against volatility Markets not entirely stable; several risks on horizon: Euro crisis Oil; middle east unrest Inflation in emerging markets US credit worries
VIX at lowest point since 07
VXX Summer Performance Return: 68.2%
Reasons to sell VXX Markets have stabilized Sell when up to realize profits Perhaps invest in VXX during a period of low volatility in the future
Thanks for coming by! Junior Analyst Applications Newsletter Team Next Week: Portfolio Review