Welcome To Mentorship!

1. Welcome To Mentorship! Abhijan Khosla (Director of Mentorship)

2. Welcome • Please bring your laptop to every session • Questions are very important, if you have a question don’t hesitate to ask • We will meet from 6 -7 p.m. every Tuesday and Thursday for the next 4 weeks • My email – ankhosla@gmail.com • Feel free to email questions, comments or concerns • Mentorship sign-up; tinyurl.com/mentorship13 GTSF Investments Committee

3. How Mentorship Works • 1 hour sessions • Topics covered • Careers in finance and Macroeconomics • Market Basics • Finance and Accounting basics • Moc Pitch Week • 2 sessions are reserved for a meet and greet and moc-pitch session • After session 8 you will be tested on what you have been taught during mentorship GTSF Investments Committee

4. Meet and Greet and MocPitch • These two sessions are very important • They will take place on the 17th and the 19th • 17th • Meet and Greet • 10 minutes with each SA • Ask good questions and learn about how their sector works • 19th • 2 hour session • you are the analyst! • you will be making and pitching a company to your peers GTSF Investments Committee

5. Who Am I? GTSF Investments Committee

6. The GT Student Foundation(GTSF) • Founded on January 26, 1986 • J. Erskine Love Jr. donated $100,000 to promote philanthropy at GT • One of the few solely student operated collegiate organizations in the nation • Awards grants to student organizations that enhance Georgia Tech • Funds are granted by an endowment run by the IC • 2013 CASE ASAP Outstanding Org of Year GTSF Investments Committee

7. GTSF Committees • Allocations • Development • Investments • Financial Programming • Events • Marketing • Freshman Leadership Initiative (FLI) GTSF Investments Committee

8. GTSF Committees • Allocations • Has given $550,000 to over 300 organizations • Development • Act as liaisons that educate the student body about GTSF and urges participation through GT Roll Call • 5,200 donors last year • Investments • Nearly $1MM (975K) under management • Largest student run endowment in the nation • We are a long only endowment • We donate our dividends and some portion of cash holdings (~ 20K) a semester back to GT student organizations GTSF Investments Committee

9. GTSF Committees (Cont) • Financial Programming • Hosts an investments speaker series and finance career fair • Runs a financial literacy program to help high schoolers learn about basic finance • Events • Focused on planning and implementing GTSF Gives Back and Philanthropy Week • Marketing • In charge of managing the GTSF brand • Freshman Leadership Initiative (FLI) • Open only to freshman, prepares them for leadership roles throughout GTSF GTSF Investments Committee

10. IC Organizational Structure IDG Sector Analysts Analysts & General Members GTSF Investments Committee

11. Sectors of the IC • Financials - Arjun Gopinath • Health Care - Andrew Reed • Industrials - David Langley • REITs - David Barr • Services -Raymond DeCuir • Technology - Saxon Bartsch • Energy - Corey Nettles • Consumer Cyclicals - Brandon Bane • Consumer Staples - Michael Schmit • Fixed Income - Eric Keener • Alternative Investments - Brandon Danzig GTSF Investments Committee

12. Careers in Finance GTSF Investments Committee

13. Possible Finance Careers • Investment Banking • Commercial Banking • Sales and Trading • Asset Management • Wealth Management • Hedge Funds • Private Equity • Venture Capital • Corporate Finance GTSF Investments Committee

14. Investment Banking • Strategic Advisors providing services and finance advice to companies i.e. recommending a potential acquisition • Make money for advising and transacting • Split into Bulge Bracket (large), Mid Market (medium) and Boutique (small) firms • Typically hire students out of college for a two year analyst program • Pay: ~ 70K + bonus (can be a significant % of base based on deal flow) • Depending on area of the bank hours range from 60 - 100+ per week GTSF Investments Committee

15. Commercial Banking • Loan money to companies and take deposits • Make money on the difference between the lending rate and the deposit rate • Focus on the creditworthiness of borrowers • Usually hire out of college for a two year credit analyst program - may have a rotational component • Pay: ~ 50K + small bonus • Hours : 40 - 80 depending on work flow and area of the bank GTSF Investments Committee

16. Sales and Trading (S&T) • Sales - sells the product • Trading - trades the product on the open market • Work in tandem to grow revenue for the bank • Sales generate revenues by charging commission on the product being sold • Trading manages risk for the bank and makes money positioning themselves correctly in the marke • Hours: vary by product usually 60 - 80/week • Pay: ~ the same as IB + bonus more closely tied to performance GTSF Investments Committee

17. Asset Management • Team within a firm dedicated to managing client’s assets via a defined strategy • Run by dedicated Portfolio Managers with access to in depth research making them more informed than retail investors • Usually offered to high net-worth individuals, pension funds, corporations • Make money from a management fee (2%) on all assets under management (AUM) • Hours: 50 - 70 hours/week • Pay: ~65K + small bonus (5-10 K)* GTSF Investments Committee

18. Wealth Management • Customized money management solutions • Usually deal with high net-worth and ultra high net-worth individuals • Often requires going beyond simple investing to other finance related activities such as tax planning, accounting, and estate planning • Make money from a management fee (depends on the services provided) • Hours: 50 - 70/week • Pay: ~65K + small bonus GTSF Investments Committee

19. Hedge Funds • Provide investment opportunities to wealthy investors seeking to grow their investments • Don’t disclose their strategies and aim at generating the maximum return possible for their client base • Can pursue gains in any legal way they want and often use exotic products as well as leverage to maximize returns • Make money by charging a management fee on assets (2%) and a fee on profits (20%) GTSF Investments Committee

20. Private Equity (PE) • Purchase controlling interests in private companies with the goal of taking them public or selling them for a profit in the future • Use their ownership stake to implement management change, provide financial advice and improve company operations • Most PE firms have a diversified portfolio of companies in which they invest • Make money through the sale or IPO of companies in their portfolio GTSF Investments Committee

21. Venture Capital (VC) • Provide funding to companies in return for an ownership interest - invest other people’s money • Help to grow ideas into successful companies via funding and expertise • Usually 3 stages of VC (early, middle and late) • Early stage investors invest in ideas and very young startups, and the later stages are more like PE • Make money from selling equity interest • Angel investors are very similar to VC’s but they only invest their own money GTSF Investments Committee

22. Corporate Finance • Help corporations manage financial risk that is found in all aspects of the business • Counterparty risk - both supplier and customer • Commodity risk • Currency risk • Interest rate risk • Make money by helping the company manage risk • Individuals hired out of undergrad usually participate in a rotational program seeing how finance impacts the business • Hours: Vary widely (40 - 80) • Pay: 60K + small bonus GTSF Investments Committee

23. Why do we care about macroeconomics?

24. Central Banks • What is a central bank? • What is the purpose of a central bank? • What are the main central banks in the world? GTSF Investments Committee

25. Interest Rates • What do global interest rates represent? • What has been happening with interest rates recently? • Why do countries have different interest rates? • What is QE? • Why does everyone care about it? GTSF Investments Committee

26. GTSF Investments Committee

27. GTSF Investments Committee

28. GTSF Investments Committee

29. GTSF Investments Committee

30. Quiz Time! In what year was the student foundation created? • 1992 • 1980 • 1986 • 1984 GTSF Investments Committee

31. Quiz Time! In what year was the student foundation created? • 1992 • 1980 • 1986 • 1984 GTSF Investments Committee

32. Quiz Time! Which of the following is NOT an GTSF Committee? • Allocations • Advertising • Financial Planning • Development GTSF Investments Committee

33. Quiz Time! Which of the following is NOT an GTSF Committee? • Allocations • Advertising • Financial Planning • Development GTSF Investments Committee

34. Quiz Time! My career opportunities in finance include • Hedge Fund Analyst • Investment Bank Analyst • Corporate Credit Analyst • Oil Futures Trader • All of the Above GTSF Investments Committee

35. Quiz Time! My career opportunities in finance include • Hedge Fund Analyst • Investment Bank Analyst • Corporate Credit Analyst • Oil Futures Trader • All of the Above GTSF Investments Committee

36. Next Time • Markets! • How the markets work • How we make investment decisions GTSF Investments Committee