McIntire Investment Institute At the University of Virginia
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Transcript of McIntire Investment Institute At the University of Virginia
McIntire Investment InstituteAt the University of Virginia
2008 Recap
Prepared by MII Managers | 27 January 2009
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Agenda
• Performance review• Lessons Learned• Goals for 2009• Opportunities for involvement• Website/Collab
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Agenda
• Performance review• Lessons Learned• Goals for 2009• Opportunities for involvement• Website/Collab
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2008 performance• MII performance 2007: -31.5% or (-
$172,279)• MII benchmark: S&P 500: -38.5%• Spread: 7.0%
2-Jan
1-F
eb
2-M
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1-A
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1-M
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31-M
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30-Ju
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30-Ju
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28-S
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27-N
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-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
Comparative YTD Performance
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2008 Winners and Losers
• “Winners”:– Exxon Mobil: (14.8%)– Monsanto: (16.9%)– Covanta: (20.6%)
• Losers:– American Express: (46.5%)– Johnson Controls: (49.6%) – Intuitive Surgical Robots: (60.7%)
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Portfolio changes
• Closed:– Exxon Mobil: 85.6%– Nike: 16.5%– Express Scripts: 234.6%– Deere & Co: (36.7%)– Johnson Controls: 42.9%
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Portfolio changes
• Opened:– Long: Textron– Long: Google– Long: Hemisphere GPS– Short: Herbalife– Short: Corinthian Colleges
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Agenda
• Performance review• Very Expensive Lessons Learned• Goals for 2009• Opportunities for involvement• Website/Collab
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Set price targets
• Intuitive Surgical Robots• Johnson Controls
• Lesson – take profits
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Intuitive Surgical Robots
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Johnson Controls
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Understand Risks – currency, inputs, etc.
• Sadia• Lesson – always consider downside
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He who picks bottom has stinky finger
• American Express• Coach
• Lesson – Ease into positions in volatile market
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American Express
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Coach
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Entry Points
• Mistake: Deere & Co.• Well-Played: Monsanto
• Lesson – use watchlist, be patient
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Mistake: Deere & Co.
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Well-Played: Monsanto
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Short!
• No short positions over summer• One short position held through fall
semester
• Lesson – long/short fund need to have short positions
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Agenda
• Performance review• Lessons Learned• Goals for 2009• Opportunities for involvement• Website/Collab
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Goals for 2008
• Improved transparency between managers and members– Polling on website– Timely decisions
• Enhance educational value– Financial news in Cavalier Daily– Sector Head presentations
• Standardized Sector Head memos• Open for suggestions as always
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Goals for 2009
• Improved watchlist• Enhance educational value
– Discussion of pitches during meetings• Improve transparency
– Explanation of management decisions– Issue Semester Reports
• Continue successful efforts• Open to suggestions
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Agenda
• Performance review• Lessons Learned• Goals for 2009• Opportunities for involvement• Website/Collab
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Opportunities for involvement
• Benefits of MII involvement:
– Gain real-world investing education and experience
– Platform for future management position
– Improve presentation skills– Useful for interviewing
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Opportunities for involvement
• Positions for involvement: – Long-fund manager– Short-fund manager– Sector heads– Analyst (Analyst Program)– Member
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Long-fund positions
• Five person investment committee– Make decisions for all positions in the
portfolio• Candidates are strongly encouraged
to: – Demonstrate regular involvement– Make quality investment pitches with
attention to VAR• Election
– Investment memo and brief presentation
– Dinner with managers
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Short-fund positions
• Committee that oversees the short portfolio
• Responsible for presenting attractive shorts
• Exposure to advanced investing techniques
• Candidates are strongly encouraged to: – Demonstrate regular involvement– Make quality investment pitches with
attention to VAR• Elections are held in April
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Sector Head position
• Members select one of nine sectors to cover
• Helps managers oversee portfolio and gain insight into a specific sector
• Bi-weekly updates for managers– Overview of current holdings and
potential investments• Brief overview presentations at
meetings• Contact Pete Cobos (pjc9f)
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Analysts
• Analyst– One company presentation– Team presentations are acceptable
• Senior Analyst – Two company presentations
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Analyst Program
• Analysts will be paired with a manager:– Assist with idea generation– Offer guidance for research– Provide direction for VAR– Explain the PowerPoint presentation
process– Check the presentation for
requirements• Contact Pete Cobos (pjc9f)
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Requirements for a presentation
• Business overview• Well-developed thesis points• Management overview• Investment fundamental• Competitive position in the industry• Recent news and developments• Extensive VAR• Risks• Relevant financial metrics
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Agenda
• Performance review• Lessons Learned• Goals for 2009• Opportunities for involvement• Website/Collab
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Website/Collab
• Please visit our website and new Collab:– www.uvamii.com– Collab polling after presentations– Collab discussion forum– Post presentations and sector head
reports– Access research and educational
material– Improved transparency through timely
announcements/constant updates
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Questions/Comments