Graduate Student Managed Fund IAB Presentation Presenting: Michael

Graduate Student Managed Fund IAB Presentation Presenting: Michael

Graduate Student Managed Fund IAB Presentation Presenting: Michael Misluk - Team Lead Portfolio Manager Ying (Cheryl) Chen - Co-Portfolio Manager Tianjiao (Talia) Chai - Fund Manager Abhishek Srivastava - Portfolio Risk Manager Team Members: Alisher Ganiev - Co-Portfolio Manager Kevin Hebreo - Communications Manager Lucy Adjei - Digital Media Manager Reginald Joazil - Co-Portfolio Manager Suzan Talo - Fund Manager Yizhen (Chelsea) Zhou - Treasurer December 6, 2018 1 Philosophy & Style

The S&P 500 Index is the funds benchmark. Mid to Large Cap Value portfolio primarily in U.S. based securities. Seek Undervalued Assets (Intrinsic Value > Market Value) with: stable, easy to understand business models; strong balance sheets; consistent, predictable future cash flows or dividends. Top-Down Investment Approach to focus our research into desirable sectors based on a late stage market cycle. Fundamental Analysis - Looking for Individual Stocks Leaders in their Industry w/Continued Strong Performance next 3-5 yrs Valuation Methods - PE Multiples, DDM, DCF 2

Strategy Perform an economic and market outlook analysis to determine what sectors to be invested in and at what target percentages; Research ETFs for approximately 85% of our expected portfolio allocation that seem to align with our sector allocation decision; Make initial purchases in five sector ETFs while we perform detailed individual company fundamental analysis; As individual stocks are approved, sell out of the corresponding ETF and purchase into the individual position; Evaluate and monitor each position for changes that would affect our purchasing decision and adjust the portfolio accordingly. 3 Process - Administrative

Process No of people required Quorum for a meeting 6 members Voting on administrative issues Simple majority of members present Pre-authorize a stock pitch 7 members Approve a position in a stock 7 members

Exit a position 5 members Stop Loss Parameter 15% Downside Set Upon Purchase 4 Process - Stock Pitch Pre-Authorization Stock Pitch

Basic Reasons Familiarity Recent News Is it Worth It? Generate Enough Interest Research Time 7 Votes Majority of Quorum Update After 3 Meetings In Depth Research Valuation Thesis/Risks Projections

Business Model/Strategy Sustainable Differentiate 7 Votes All Members 5 Sector Outlook Overweight Information Technology, Consumer Discretionary, Industrials Sectors with good previous performance in short & long run, or good in the past few years but not so well in recent years (momentum and reversal effect) Sectors with emerging industries or large growth potential Market weight Financials, Healthcare, Utilities Sectors with stable growth but partly constrained by capital and/or regulations Underweight / No Weight Consumer Staples, Energy, Telecommunications, Materials, Real Estate Sectors without much risk but little stable growth Sectors with single, concentrated growth in few sub-sector

6 Exchange Traded Funds (ETFs) ETFs purchased on 10/3/18 as soon as funds were available Decided on ETF Strategy on 6/29/18, would have liked to have purchased here Wanted ~85% of Our Portfolio Allocated to Five Sectors Decided the following Lined Up with the Sector Analysis We Performed: VGT - Technology, XLF - Financials, XLY - Consumer Discretionary, XHE - Medical Equipment, XAR - Aerospace & Defense 7

Portfolio Allocation @ 11/30/18 8 Portfolio Performance @ 11/30/18 9 28 Total Considered Positions 10 Current Portfolio Holdings Listed in Order of Purchase ~$1.4M Initially Invested in the 5 ETFs, ~$569k Initially Invested in Individual Stocks 11 United Healthcare Group (UNH)

Why choose UNH? Stock Performance Word-of-mouth (Low Marketing cost) Strong Financial statement Diligence to clients Innovator in the healthcare management industry Future Outlook Developing software for storing and analysing

healthcare information ($ 7B) New on-demand healthcare and new designs for the eligible and Medicare advantage participants hold promise for continued growth Current P/B: 5.5 times 7.65 Current ROE %: 25 Current EBIT margin %: 12 NextEra Energy (NEE) Strengths:

Market Position: World leader in electricity generation from Renewable Resources.. Growth Plans: The company is building some of the lowest-cost universal solar ever. Cost and Operational Efficiency: 15.6% inc in operating income). (Operating Margin 30.9%, to 28.5%). Increase in Electricity Demand: Expected to increase to 3,924.4 TWh by 2022. Rise of electric vehicles will give impetus. Salient Metrics: P/E Ratio Industry P/E : 16.13(TTM) : 27.54 Net margin Debt/Equity

: 49.10% : 0.78 13 Potential Risks Position Risks Mastercard - MA - Increasing regulations of certain aspects of payment - Limitations of ability to restrict merchant surcharging NextEra Energy - NEE - Natural disasters, particularly in Florida

PepsiCo - PEP - Concerns over the long-term decline in soda sales and the corresponding drag on both revenue and earnings - Low potential for growth in mature markets UnitedHealth Group - UNH - Competition - Data security and privacy concerns - Changing regulations Cognizant Technology Solutions - CTSH - Intense competition from other service providers - Global operations subject to complex risks, beyond company control 14 Future Plans

Companies in the Pipeline for Pre-Authorization Walt Disney (DIS), TJX Companies (TJX), Ball Corporation (BLL) Matson (MATX), Foot Locker (FL) and Pfizer (PFE) Shelved Stocks for Reconsideration CVS Health Corp (CVS), Nvidia Corp (NVDA), XPO Logistics (XPO) and Caterpillar (CAT) Continue Working Toward 20 Individual Positions Move Completely Out of the Sector ETFs Re-Evaluate our Target Weighting Percentages, IT, Consumer Discretionary, Healthcare and Telecommunications 15

Thank You! December 6, 2018 16

Recently Viewed Presentations

  • THE NORTHWEST AND THE ARTIC - Mrs. Looney's Class

    THE NORTHWEST AND THE ARTIC - Mrs. Looney's Class

    Kwakiutl and Chinook people groups of the North . People met their needs by fishing, hunting and gathering. Natural resources used: waters, salmon, and whales. Whales provided food and fat that was melted to make oil for lamps.
  • More chemical quantities -

    More chemical quantities -

    In 1 mole of CO. 2. there is 1 mole of carbon and 2 moles of oxygen.In one molecule of CO. 2. there is 1 atomof C and 2 atoms of O. Empirical to molecular. Since the empirical formula is...
  • E E 2315: Phasor Circuit Analysis Examples

    E E 2315: Phasor Circuit Analysis Examples

    Phasor Node Voltages (1/2) Phasor Node Voltages (2/2) Phasor Mesh Currents (1/2) Phasor Mesh Currents (2/2) Complex Power Calculations E E 2315 Lecture 16 Phasor Domain Circuit Analysis Examples Phasor Node Voltages (1/2) Phasor Node Voltages (2/2) Phasor Mesh Currents...
  • Transportation Performance Management TPM Guidebook and TPM CMM

    Transportation Performance Management TPM Guidebook and TPM CMM

    Other, more detailed assessment tools, such as TSM&O and others, allow you to dive deeper into a particular focus area. So, all these tools are related, but assess different things at different levels of specificity. ... Resources are also listed...
  • The Age of Jackson -

    The Age of Jackson -

    The Tariff of Abominations and the Nullification Crisis. 2. John C. Calhoun and the Doctrine of Nullification. In 1828 Vice-President John C. Calhoun anonymously wrote the "South Carolina Exposition and Protest" to denounce the Tariff of Abominations. Calhoun argued that...
  • What is food chemistry?

    What is food chemistry?

    What is food chemistry? The study of the chemicals inside common foods and how they react. WHy study food chemistry. To understand the major components of foods: Lipids. Protein. Carbohydrates. And the chemical changes of food composition which occur during...
  • Standardization Activities on Environmental Sustainability ...

    Standardization Activities on Environmental Sustainability ...

    ES 202 336-4 V 1.1.1 Monitoring and Control Interface for Infrastructure Equipment (Power, ... Revision of EN 300 019-2-2 V.2.3.1, source Huawei, reference contributions are EE1(13)43001 and EE1(13)43002. The proposed changes are on the clarification of applicability of water test...
  • Welcome  Thanks for joining this ITRC Training Class

    Welcome Thanks for joining this ITRC Training Class

    Welcome - Thanks for joining this ITRC Training Class Permeable Reactive Barrier (PRB): Technology Update [insert team graphic] ITRC Technical Regulatory Guidance Document: Permeable Reactive Barrier: