W. P. Carey School of Business Undergraduate

Transcript:W. P. Carey School of Business Undergraduate:
W. P. Carey School of Business Undergraduate Maroon & Gold Value Fund Semi-Annual Meeting April 30th, 2010 INTRODUCTION 1 Today’s Agenda Team introduction & fund objectives Fund performance Economic outlook & market overview Portfolio structure decisions Investment selection process Investments to highlight: POSCO (PKX) Brookfield Properties (BPO) Attribution analysis Thesis overview Lessons learned & conclusion INTRODUCTION 2 FUND PERFORMANCE Fund Performance 3 Spring Semester| Academic Year FUND PERFORMANCE 4 Spring Semester (11/20/09 – 4/16/10) Trailed benchmark by 329 basis points Reasons for underperformance Certain stock selections that did not meet analyst expectations Discussed later in investment highlights and attribution analysis FUND PERFORMANCE 5 Aggregate Performance Percent Cumulative Return for the Period of 11/20/2009-4/16/2010 Trailed benchmark by 185 basis points Better aggregate performance than spring semester alone FUND PERFORMANCE 6 Academic Year (10/26/09 – 4/16/10) Economic Overview ECONOMIC OVERVIEW 7 Report| Sectors ECONOMIC OVERVIEW 8 Economic Report Sector Weightings ECONOMIC OVERVIEW 9 Fixed Income Equity Portfolio Structural Decisions PORTFOLIO STRUCTURE Portfolio | Allocation 10 PORTFOLIO STRUCTURE Portfolio 11 Diversified, large-cap fund Large-cap with market capitalization of $7bn+ Financially strong companies with concentration in those with strong access to U. S. capital markets and other G7 countries. Companies able to take advantage of opportunities, especially those opportunities that present themselves in foreign markets PORTFOLIO STRUCTURE Allocation 12 Diversification Strategy 9 sectors, 1 fixed income position Sector analyst recommended weighting Depended on our economic view PORTFOLIO STRUCTURE Allocation 13 By Market Value Investment Selection Process SELECTION PROCESS Sector reports | Investment reports | Committee 14 SELECTION PROCESS Sector Reports Implemented top-down analysis Updated previous reports to include recent data Determined view by examining: Economic reports, performance charts, industry publications, Wall Street research reports, major companies reported earnings 15 SELECTION PROCESS Investment Reports Industry overview Fundamental analysis P/E, P/B, Revenue Growth, ROE Company changes from last semester Did the fundamentals of the company change? Does it fit with the new economic outlook? Are there better opportunities within the sector? Buy/Hold/Sell recommendation 16 SELECTION PROCESS Committee, Monitoring Committee decision Vetting process/due diligence Majority consensus Monitoring Company briefings & industry updates 17 Stocks to Highlight INVESTMENT HIGHLIGHTS POSCO (PKX) | Brookfield Properties (BPO) 18 POSCO (PKX) INVESTMENT HIGHLIGHTS 19 Holding Period Return= -.82% POSCO (PKX) – Reasons for purchase INVESTMENT HIGHLIGHTS 20 Exposure to China, India growth projects Steel attractive over other basic materials Leader in operational efficiency, room for margin growth POSCO (PKX) – Holding