Undergraduate Student Managed Fund 2014 Fall Presentation December - - PowerPoint PPT Presentation

▶
undergraduate student managed fund 2014 fall presentation
SMART_READER_LITE
LIVE PREVIEW

Undergraduate Student Managed Fund 2014 Fall Presentation December - - PowerPoint PPT Presentation

Sep 18, 2022 377 likes •631 views

Undergraduate Student Managed Fund 2014 Fall Presentation December 4, 2014 1 UConn Student Managed Fund, 2014 UConn Student Managed Fund, 2014 Agenda Portfolio Overview Investment Process Economic / Market Environment

slide-1
SLIDE 1

UConn Student Managed Fund, 2014 UConn Student Managed Fund, 2014

Undergraduate Student Managed Fund 2014 Fall Presentation

1

December 4, 2014

slide-2
SLIDE 2

UConn Student Managed Fund, 2014

Agenda

  • Portfolio Overview
  • Investment Process
  • Economic / Market Environment
  • Portfolio Allocation & Performance
  • Interesting Holdings
  • Lessons Learned
  • Looking Forward

2

slide-3
SLIDE 3

UConn Student Managed Fund, 2014

Portfolio Managers

3 Student Managed Fund Fund Managers Spring 2014 Presentation

  • Lead Manager: Alexander Thalassinos

Portfolio Manager: Kelly McCourt Treasurer/Secretary: Mitesh Mistry Bloomberg Specialist: Stephen Vento Web Manager: Akanksha Singh Cinzia Alfano Michelle Filippi Andrew Novitski Louis Beck Samuel Gudeon Akanksha Singh Nicholas Chapman Kelly McCourt Alexander Thalassinos Ryan Conforti Mitesh Mistry Stephen Vento

  • Undergraduate Supervisor: Patrick Terrion

Fund Director: Chinmoy Ghosh

slide-4
SLIDE 4

UConn Student Managed Fund, 2014

Portfolio Overview

4 Student Managed Fund Fund Managers Spring 2014 Presentation

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

  • Focus on the business – Bottom Up Approach
slide-5
SLIDE 5

UConn Student Managed Fund, 2014

Portfolio Overview

5 Student Managed Fund Fund Managers Spring 2014 Presentation

Risk Management

  • Business Model Risk –sustainable or not easily duplicated business model
  • Balance Sheet Risk –companies with strong balance sheet
  • Management Risk –companies with great leadership and direction
  • Aggregation Risk –diversified portfolio and unique companies

Stop Loss Orders – 20% on each investment Focus on long-term growth Corporate Social Responsibility

slide-6
SLIDE 6

UConn Student Managed Fund, 2014

Investment Process Highlights

6 Student Managed Fund Fund Managers Spring 2014 Presentation

Strong Business Model Shareholder Return Policy Competitive Position Sustainable Growth Return on Invested Capital Sustainable Barriers to Competition

slide-7
SLIDE 7

UConn Student Managed Fund, 2014

Investment Process

7 Student Managed Fund Fund Managers Spring 2014 Presentation

Step 1

  • Manager Researches Chosen Company

Step 2

  • Presents Research to Other Managers

Step 3

  • Thorough Discussion on Company Research

Step 4

  • Majority of Managers Vote for Approval

Step 5

  • If Yes  Vote on Allocation of Capital
  • If No  Conduct Further Research
slide-8
SLIDE 8

UConn Student Managed Fund, 2014

Investment Tools

8 Student Managed Fund Fund Managers Spring 2014 Presentation

slide-9
SLIDE 9

UConn Student Managed Fund, 2014

Economic Outlook

9 Student Managed Fund Fund Managers Spring 2014 Presentation

  • End of Quantitative Easing
  • U.S. Economy
  • Falling Oil Prices
slide-10
SLIDE 10

UConn Student Managed Fund, 2014

Results of QE

10 Student Managed Fund Fund Managers Spring 2014 Presentation

  • Record Highs, Record Lows
  • ~$4.5B Fed Balance Sheet
  • Stabilizing Economy
  • Inorganic vs. Organic Growth
  • Interest Rates Rising
  • Finding Undervalued Stocks

Falling Unemployment Rate Strengthening Equity Markets

slide-11
SLIDE 11

UConn Student Managed Fund, 2014

Oil at 5-Year Low

11 Student Managed Fund Fund Managers Spring 2014 Presentation

  • Supply > Demand
  • Producers
  • Consumers
  • Opportunity
slide-12
SLIDE 12

UConn Student Managed Fund, 2014

Equity and Sector Allocation

12 Student Managed Fund Fund Managers Spring 2014 Presentation

Basic Materials: Nicolas Chapman, Louis Beck Consumer Services: Cinzia Alfano, Akanksha Singh, Andrew Novitski Consumer Goods: Michelle Filippi, Ryan Conforti, Andrew Novitski Energy: Kelly McCourt, Nicolas Chapman, Ryan Conforti Financials: Alexander Thalassinos, Stephen Vento, Louis Beck Healthcare: Michelle Filippi, Cinzia Alfano, Kelly McCourt Industrials: Akanksha Singh, Mitesh Mistry Real Estate: Alexander Thalassinos, Samuel Gudeon Technology: Stephen Vento, Samuel Gudeon, Mitesh Mistry

slide-13
SLIDE 13

UConn Student Managed Fund, 2014

Sector Allocation

13 Student Managed Fund Fund Managers Spring 2014 Presentation

slide-14
SLIDE 14

UConn Student Managed Fund, 2014

Portfolio Performance Overview

14 Student Managed Fund Fund Managers Spring 2014 Presentation

  • Total Portfolio Performance: 1.6%
  • Equity Performance: 4.7%
  • S&P 500 Performance: 3.15%
slide-15
SLIDE 15

UConn Student Managed Fund, 2014

Total Portfolio Performance

15 Student Managed Fund Fund Managers Spring 2014 Presentation

slide-16
SLIDE 16

UConn Student Managed Fund, 2014

Equity Portfolio Performance

16 Student Managed Fund Fund Managers Spring 2014 Presentation

slide-17
SLIDE 17

UConn Student Managed Fund, 2014

Portfolio Allocation

17 Student Managed Fund Fund Managers Spring 2014 Presentation

General Allocation

  • 85% - Equities
  • 12% - SPDR
  • 3% - Cash

Average Position Size 8.3% Position Size Determined By Certainty

ESRX 8% IBM 4% PG 6% MKL 10% UTX 7% SPY 12% T 8% MA 13% DEO 6% GILD 7% CVX 5% PCP 6% NOV 5% Cash 3%

Portfolio Allocation (Current Market Value)

slide-18
SLIDE 18

UConn Student Managed Fund, 2014

Portfolio vs. S&P 500

18 Student Managed Fund Fund Managers Spring 2014 Presentation

17.13%

  • 15.33%

8.10% 6.35% 10.46% 3.47%

  • 0.64%

23.87% 7.81%

  • 9.45%
  • 3.43%

5.12%

  • 9.04%
  • 20%
  • 15%
  • 10%
  • 5%

0% 5% 10% 15% 20% 25% 30%

slide-19
SLIDE 19

UConn Student Managed Fund, 2014

Worst Performing Stocks:

19

  • Technology Sector
  • Unrealized loss of 15.33%
  • Disappointed on Q3 earnings
  • Stagnant/Decreasing revenues
  • Issues implementing the new cloud system

Future Outlook

  • Established relationships with large corporations
  • Companies are already integrated with IBM, high switching costs
  • Ability to manage incredible amounts of data has IBM set up for

future opportunities

slide-20
SLIDE 20

UConn Student Managed Fund, 2014

Worst Performing Stocks:

20

  • Healthcare Sector
  • Unrealized loss of 9.45%
  • Disappointed on Q3 earnings:
  • $337 mm branded prescription drug fee imposed by the

Affordable Care Act

  • Solvaldi sales decreased by approximately 20% because of

anticipation of Harvoni Future Outlook

  • Implementation of Harvoni will increase revenues and continue rapid

growth

  • Pricing pressure from AbbVie treatment release in 2015
slide-21
SLIDE 21

UConn Student Managed Fund, 2014

Best Performing Stocks:

21

  • Financial Sector
  • Unrealized gain of 23.87%
  • Strong Q3 earnings, revised growth rate

upwards

  • New opportunities in China to couple increased

global presence

slide-22
SLIDE 22

UConn Student Managed Fund, 2014

Best Performing Stocks:

22

  • Healthcare Sector
  • Unrealized gain of 17.13%
  • Strong Q3 earnings, EPS $1.29 represents 24%

growth in EPS YoY

  • Affordable Care Act increases the overall market

for prescriptions

slide-23
SLIDE 23

UConn Student Managed Fund, 2014

Looking Forward

  • 2015 Spring Semester
  • Rest of Capital Allocation
  • Active Portfolio Management
  • Continuous Learning and Improvement

23

slide-24
SLIDE 24

UConn Student Managed Fund, 2014

Lessons Learned

24 Student Managed Fund Fund Managers Spring 2014 Presentation

  • Investment Philosophy
  • Certainty of Investment
  • Thinking Process
  • Teamwork and Diversity of Ideas