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M AYE R F UN D O VERVIEW

M AYE R F UN D O VERVIEW. R ECRUITING P RESENTATION D ECE M BER 18 , 2013. M AYER F UND. Mayer Fund Background. Overview The Mayer Fund is a student-managed investment fund with over $ 3 million und e r management History.

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M AYE R F UN D O VERVIEW

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  1. MAYER FUND OVERVIEW RECRUITINGPRESENTATIONDECEMBER18, 2013

  2. MAYERFUND MayerFundBackground • Overview • TheMayerFundisastudent-managed investmentfundwithover $3 million undermanagement • History • Startedin1993byWilliamMayer,the thenDeanof thebusinessschool,with$250,000 • Grownovertheyearsthroughcapital appreciationandoutsidecontributions. BillMayerisoneof thecontributors William E. Mayer • CurrentFund • ProfessorandDean of the Business School at UMD from 1992-1996 • Chair of the MarylandCollege ParkFoundation • FormerCEO of First Boston • 12selectsecondyearMBAs runthefund usingatopdowninvestmentapproach • EveryPortfolioManagerandAnalyst developsfinancialacumenandbenefits from theuniqueacademicand professionalopportunitiesavailableto MayerFundmembers

  3. MAYERFUND Objectives • Achievelong-termgrowthof capital • Maximizeriskadjustedreturn • Educationalbenefitsfor members • Experientiallearningrealworldapplicationof stock selection, equityanalysisandportfoliomanagement • Enhancethereputationof theSmithSchool • MeetingswithWallStreet andlocalfinanceprofessionals • Employmentwithworld-classcompanies • Providea5%annualdividendto SmithSchool

  4. MAYERFUND ApproachandOrganization • Investmentapproachandstrategy • “Topdown”approach • Growthat areasonableprice(GARP) • Modelingintensive • Processdriven • Organizationandculture • Runbyaselectgroupof secondyearMBA students • Selectionbasedonanalyticalability,knowledgeof thecapital market, passionfor financeandmost importantlytheabilityto workwithothers

  5. MAYERFUND MayerFundInvestmentApproach • Analyzethemacroeconomicenvironmentandtrends • Developandimplementamacroviewpoint • Usetheviewpointto guideindustryandsectoroutlooks • Drill-downto selectbestsecuritiesineachsector Healthcare ConsumerStaples Utilities Energy Industrials Materials Late Cycle Defensive Economic Expansion Economic Contraction Early Cycle Technology FinancialsDiscretionary

  6. MAYERFUND FacultyAdvisor SarahKroncke: • SmithMBA & MayerFundAlum • 15yearsof professionalexperience,includinginprivateandpublic equity,M&A, andconvertiblesecurities • AppliedEquityAnalysisprofessor,arequiredcoursefor Mayer Fundmembers • Alsoadvisorfor undergraduatefund(SenbetFund).

  7. MAYERFUND MayerFundClassof2014

  8. MAYERFUND MayerFundClassof2014

  9. MAYERFUND MayerFundClassof2014

  10. MAYERFUND • PortfolioManagerResponsibilities • Marketcommentary • Leadsectorweighting decisions • Facilitatebuy/ hold/ selldecisions • Track performance • Runmeetings • Overseebrokerageaccounts • Budgeting responsibilities • Manageexternal relations • Administrativeitems 10

  11. MAYERFUND AnalystResponsibilities • Evaluateandmonitor sector • Track industrytrendsand currentevents • Screenindustryfor potentialbuying opportunities • DevelopDCFandrelative valuemodelsto value companies • Makebuy/ hold/ sell recommendations • Pitch investment ideas

  12. MAYERFUND • Structureof theFund • TwoPortfolioManagers • 8-10SectorAnalysts • Analystsmakefourpitchesovertheirtenure,oneper term • Buy/ selldecisionsmust beunanimous(uniqueto the fund) • Newclassfiscalyearstarts April1st • NewclasstakesoverfundinmidMay • Weeklyupdatesstillmadeoverthesummer

  13. Annualized Performance 5-Year Return vs. S&P 500 3-Year Return vs. S&P 500 10-Year Return vs. S&P 500 MAYERFUND Mayer Fund continues to outperform S&P 500 benchmark over long-term 3 and 5-year returns moving closer to benchmark Mayer Fund S&P 500 13

  14. CONCLUDINGREMARKS TypicalMayerFundMember • Enthusiastic,motivatedtobe on the Fund • Dependable • TeamPlayer • AnalyticalThinker • EffectiveCommunicator 14

  15. MAYERFUND ProgramBenefits JobPlacement • Attractiveexperienceto employers • Exposuretoareal-lifeasset managementenvironment • Financialmodelingskills • Opportunitiestonetwork • Surroundedbyreallysmart andambitiouspeopleina collegialsetting • Sixcreditsduringsecond year • Honecommunicationand pitchingskills

  16. MAYERFUND Testimonials Buygreatcompaniesat reasonablepricesinsteadof averagecompaniesat cheapprices. Investmentismostintelligent whenitismostbusinesslike. TheMayerFundhasbeen challenging,immensely rewarding,andopenedthe doortoamultitudeofgreat opportunities. TheMayerFundhasbeen thehighlightofmybusiness schoolexperience. Pitchingstrengthensevery aspectofwhatislearnedat Smithincludingmarketing, accounting,financeand especiallyinterpersonal skills. Tryingtoconvinceagroup ofyourskepticalpeersthat youunderstandthemarkets isthebestcareer preparationI’vehad.

  17. MAYERFUND Requirements • CompletedcoreandontracktograduatebyMay2015 • TakeBUFN760AppliedEquityAnalysisduring2nd semesterof1styearor1stsemesterof2ndyear • BeavailableduringthedaywhenTeammeets(twicea weekduringtheday) • Commit14monthstotheFund(fromMarch2014throughMay2015) • Makeefforttoattendmeetingswithcurrentmembersstartingin March • ParticipateintheEndofYearpresentationinMay2014 • ManagetheFundduringthesummerof2014 • SubmitapplicationandinterviewinJanuary2014

  18. MAYERFUND Application • CoverLetter • Briefbackground/experience • ReasonswhyyouwanttobeintheMayerFund • StockReport(Nomorethanthreepagestyped,notincluding exhibits,doublespaced,12pt,TimesNewRomanfont) • EconomicOverview • IndustryAnalysis • CompanySelection&Analysis • Honor Code(honorviolationsforwardedtohonorcommittee) Tips for stock reportbyWarren Buffet: "I neverbuyanythingunless I can fill out onapieceof papermyreasons. I maybe wrong, but I wouldknow the answer to that. “I’m paying$32billion today for the Coca ColaCompanybecause...”

  19. MAYERFUND Application • Resume • CopyofCurrentTranscript • – Unofficialprintoutfromwebisacceptable(musthaveallof yourfallsemestergradesonit) • ListofFinanceElectives(currentandfutureexpected) • SealedEnvelopewithyourfundpreference (Ifyou applytoboththeMayerandNewMarketsfunds,youmustmake aselectionincaseyouareacceptedtoboth.) • *Emailallfilesexceptpreferencetomayerfund@rhsmith.umd.edu • Friday, January31st,2014at9AM* • SubjectFormat:First_Last_Mayer_Fund_Application • *Putthe Sealed EnvelopeunderthedoorofSarah’soffice(Room 4463) • byFriday, January31st,2014at9AM*

  20. MAYERFUND Interview • HeldonaSaturday,February8,2014 • Lastsabout1.5hours • Conduct3interviews • Behavioral • Macro-economicandmarket • Technical • Purposeistoassess: • HowseriousyouareaboutbeingontheFund • Howwellwethinkyou’llgetalongwiththeothermembers • Howwellyouthinkanalytically • Howwellyoucommunicate 20

  21. MAYERFUND Timeline • ApplicationDue:Friday, January31,2014,9:00AM • Emailallfilesexceptpreferencesto • mayerfund@rhsmith.umd.edu • SlidepreferencesunderthedoorofSarah’soffice–Room 4463 • Wewillemailyoutoconfirmreceipt • FirstRoundSelections:Wednesday,February 5, 2014 • Decisionswillbeemailed • InterviewsHeld:Saturday,February8, 2014 • 1.5hours,varioustimes(behavioral-market-technical) • FinalSelections:Friday,February14, 2014 • Decisionswillbeemailed

  22. MAYERFUND • WordsofAdvice • Startearly • Analysisshouldbequalitativeandquantitative • Beawareofdatesandtimes,conflictsormissing deadlineswillimpairyourabilitytobeonthefund,feel freetoturnitemsinearlyifthereisanissue • Comepreparedforinterviews:behavioral,technical, markets • Beinformed,knowwhat’sgoingoninthemarkets(read theWSJoryourfinancepublicationofchoice), understandmacro-economicfactors,andhavea viewpoint • Beconfident,wearelookingforpeoplewhodefend theirarguments,showtheirknowledge,andsell themselves

  23. MAYERFUND Q&A E-mail: ryan.turner@rhsmith.umd.edu

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