Presentation Transcript

1. Undergraduate Student Managed Fund Spring 2014 Presentation March 6, 2014
2. Fund Managers Officers: Lead Manager: Robert Bailey Portfolio Manager: DustonHodgkins Secretary: Tom Blankemeier Managers: Alexander Anisimov David Boudreau Eric Bourassa Michael Cox Joseph Grieco Matthew Mastrogiorgio Lina Posada Student Managed Fund Fund Managers Spring 2014 Presentation
3. Agenda Investment Objective and Philosophy Investment Process Economic Outlook Portfolio Overview Interesting Holdings Performance Attribution Analysis Lessons Learned Student Managed Fund Agenda Spring 2014 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 Spring 2014 Presentation
5. Industry Managers Basic Materials: Matthew Mastrogiorgio Consumer Discretionary: Robert Bailey, David Boudreau Consumer Staples: Thomas Blankemeier, DustonHodgkins Energy: Alexander Anisimov, Michael Cox, Lina Posada 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, DustonHodgkins Student Managed Fund Industry Managers Spring 2014 Presentation
6. Investment Strategy High ROE & ROIC i.e. ORCL Sustainable Barriers to Competition i.e. ACN Consistent Return to Shareholders i.e. SLB Strong Business Models i.e. DTV Student Managed Fund Investment Strategy Spring 2014 Presentation
7. Investment Tools Student Managed Fund Investment Tools Spring 2014 Presentation
8. Investment Process Student Managed Fund Investment Process Spring 2014 Presentation
9. Portfolio Approach Seek to take positions at various percentage increments depending on a variety of factors 6% or under position Strong fundamentals Fairly valued Carry more risk 6% or larger position Safe/predictable Strong upside potential Strong downside protection Undervalued Student Managed Fund Portfolio Approach Spring 2014 Presentation
10. Economic Outlook Quantitative Easing and recent tapering Unemployment in the US Eurozone Recovery and Deflation Student Managed Fund Economic Outlook Spring 2014 Presentation
11. Quantitative Easing The growth of the Fed’s Balance Sheet and Interest Rates Interest rates appear to be on the rebound with the recent tapering of mortgage-backed securities and 30-year Treasury purchases Source: Bloomberg LP Student Managed Fund Economic Outlook Spring 2014 Presentation
12. QE’s Affect on the US Equity Market Correlation of Balance Sheet and Equity Performance With QE looking to halt by year end, will the equity market be able to maintain this positive trend without being artificially stimulated? Source: Bloomberg LP Student Managed Fund Economic Outlook Spring 2014 Presentation
13. Strength of the US Economy The Unemployment rate 2007 – Present Source: Bloomberg LP Student Managed Fund Economic Outlook Spring 2014 Presentation
14. Conditions in the Eurozone Slow Recovery Deflation European Central Bank and Outright Monetary Transaction (OMT) program Student Managed Fund Economic Outlook Spring 2014 Presentation
15. Portfolio Breakdown Average weight per company: 5.88% Student Managed Fund Portfolio Breakdown Spring 2014 Presentation
16. Sector Allocation Student Managed Fund SectorAllocation Spring 2014 Presentation
17. Portfolio Performance Student Managed Fund Portfolio Performance Spring 2014 Presentation
18. Portfolio Performance Undergraduate SMF portfolio has underperformed the S&P 500 by 0.67% (67 BPS) Beta = 0.97, Sharpe Ratio = 2.48, Treynor Ratio = 0.29 Student Managed Fund Portfolio Performance Spring 2014 Presentation
19. Individual Stock Performance Student Managed Fund Portfolio Performance Spring 2014 Presentation
20. Best Performing Stock - NVR Real Estate: Homebuilder Unrealized gain of 26.12% Strong Q4 earnings EPS $21.15 vs. estimates of $16.08 On December 18th management authorized an additional $300 million buyback program Student Managed Fund Portfolio Performance Spring 2014 Presentation
21. Worst Performing Stock – Bed Bath and Beyond Reason Q4 guidance lowered Worried about holiday season Reinvestment Growth opportunities Free cash flow stability Lower cost basis Student Managed Fund Portfolio Performance Spring 2014 Presentation
22. Attribution Analysis Student Managed Fund Attribution Analysis Spring 2014 Presentation
23. Attribution Analysis – Allocation Effect Student Managed Fund Attribution Analysis Spring 2014 Presentation
24. Attribution Analysis – Selection Effect Student Managed Fund Attribution Analysis Spring 2014 Presentation
25. Attribution Analysis – By Sector Student Managed Fund Attribution Analysis Spring 2014 Presentation
26. 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 Spring 2014 Presentation
27. Lessons Learned Difficulties Record high market conditions Corporate social responsibility Lessons Corporate social responsibility initiative Company price tracking Teamwork and personal responsibility Student Managed Fund LessonsLearned Spring 2014 Presentation
28. Acknowledgements UConn Foundation Board Investment Advisory Board Pat Terrion Jeff Annello Dr. Chinmoy Ghosh Dr. Michel Rakotomavo Laurel Grisamer Student Managed Fund Acknowledgements Spring 2014 Presentation