University of Connecticut MBA SMF Presentation Dec 9th 2015 - Investment Philosophy & Strategy

Slide Note

University of Connecticut MBA SMF presentation on investment philosophy, strategy, risk management, economic outlook, portfolio analysis, and performance. The presentation covers value investing, bottom-up investment approach, process and procedures, and risk management strategies. It also discusses the economic outlook with a global growth forecast and key market forces influencing the investment landscape.

yen_mck Follow

Uploaded on Feb 22, 2025 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.

Download Presentation

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.

E N D

Presentation Transcript

University of Connecticut MBA SMF Presentation December 9th 2015 Akhil Sood, Akhilesh Kumar, Alex Sadowski Christopher Norris, Edward Laclaustra, Jason Harris, Jifeng Hu, Lingfan Sun, Neel Munot, Yun Xie

Agenda Investment Philosophy and Strategy Process & Procedure Risk Management Economic Outlook Portfolio Analysis Performance Selected Holdings Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Investment Philosophy and Style Value Investing Emphasis on Fundamental Analysis 5-Year Investment Horizon Corporate Social Responsibility Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Investment Strategy Bottom-Up Investment Approach 35-40 Stocks When Fully Invested 4 Stock Pitches Per Investment Manager Currently Invested in 17 Stocks (~46% Invested) No Bond Investment Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Process & Procedure Training and development Communication Stock pitch Voting Tracking Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Risk Management Stable and easily understanding business model Strong balance sheet and financial reports Business Model Risk Balance Sheet Risk Macro Economic/ Social Responsibility Aggregation Risk Allocate stock in all 10 sub sectors Above average CSR scores 20% stop loss order Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Economic Outlook Global growth forecast at 3.3% in 2015 and 3.8% in 2016 Forces are now more redistributive in nature: Sharp declines in oil prices Diverging trajectories of the major economies Strengthening of the U.S. dollar and the weakening of the euro and yen Outlook for advanced economies is showing signs of improvement Disposable incomes from lower oil prices Accommodative monetary policy Growth in emerging market economies is softening Adjustment to diminished medium-term growth expectations Lower revenues from commodity exports Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Economic Outlook - US U.S. economy is in the middle of what could turn out to be the longest expansion Leading economic indicators point towards mid cycle position Yield Curve Investment Philosophy and Strategy Charts Source: Bank of America Capital Markets Outlook http://corp.bankofamerica.com/documents/16307/0/capital_market_outlook.pdf Economic Outlook Analysis Process & Procedure Risk Portfolio Selected Holdings Performance Management

Economic Outlook - US Leverage & household obligation Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Economic Outlook - US Wages & Consumer Confidence Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Status I :17 Stocks 2,000.00 1,800.00 1,600.00 1,400.00 1,200.00 1,000.00 800.00 600.00 400.00 200.00 0.00 9/22/2015 9/24/2015 9/26/2015 9/28/2015 9/30/2015 10/2/2015 10/4/2015 10/6/2015 10/8/2015 10/10/2015 10/12/2015 10/14/2015 10/16/2015 10/18/2015 10/20/2015 10/22/2015 10/24/2015 10/26/2015 10/28/2015 10/30/2015 11/1/2015 11/3/2015 11/5/2015 11/7/2015 11/9/2015 11/11/2015 11/13/2015 11/15/2015 11/17/2015 11/19/2015 11/21/2015 11/23/2015 ETF Eqity Cash Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Status II : Return Return 8.69% 8.78% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 1.54% 3.00% 0.88% 2.00% 1.00% 0.00% Invested Portfolio Benchmark Return Total Portfolio Return Benchmark Return Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Analysis: Sector Allocation Sector Allocation 25.00% 23.47% 20.80% 20.00% 16.20% 14.60% 15.00% 13.20% 11.88% 11.79% 11.64% 11.60% 10.20% 9.70% 10.00% 7.10% 5.98% 5.96% 5.92% 5.88% 5.88% 5.00% 2.90% 2.90% 2.40% 0.00% Cons Disc Cons Stapl Financials Industrials Health Care Utilities Infor Tech Telecom Services Energy Materials Current Portfolio weights S&P 500 sector weights Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Analysis: Positions Shares Held Current Price Portfolio Weight Current Position Value Industry Consumer Discretionary Leisure Products Media & Entertainment Household Durables Specialty Retail Consumer Staples Food & Staples Retailing Tobacco Energy Oil, Gas & Consumable Fuels Financials Consumer Finance Real Estate Investment Trusts Health Care Biotechnology Health Care Equ & Sup Industrials Aerospace & Defense Air Freight & Logistics Information Technology Tech Hard, Storage & Periph Materials Construction Materials Telecommunication Services Diversified Telecomm Services Utilities Electric Utilities Company Date Purchased 23.5% 5.9% 5.8% 5.9% 5.9% 11.9% 5.9% 6.0% 5.9% 5.9% 11.8% 5.9% 5.9% 11.6% 5.8% 5.8% 11.6% 5.8% 5.8% 6.0% 6.0% 5.9% 5.9% 5.9% 5.9% 6.0% 6.0% 201,182 47,601 50,195 53,284 50,103 101,809 51,066 50,743 53,406 53,406 104,577 51,883 52,694 98,423 48,691 49,732 98,452 48,350 50102.4 51,630 51,630 50,989 50,989 50,655 50,655 58,652 58,652 Polaris Disney Toll Brothers Carmax 29-Oct-15 29-Oct-15 29-Oct-15 6-Nov-15 450 435 1400 875 105.73 119.42 37.10 56.63 CVS Health Reynolds American 17-Nov-15 19-Nov-15 535 1100 91.56 47.03 Marathon Petroleum 19-Nov-15 900 56.41 Capital One AvalonBay 18-Nov-15 19-Nov-15 650 285 78.82 181.50 Gilead Science Medtronic 6-Nov-15 11-Nov-15 460 650 106.36 76.56 UTX UPS 29-Oct-15 6-Nov-15 500 480 98.09 103.59 Apple Inc 18-Nov-15 440 117.75 Martin Marietta 18-Nov-15 320 159.92 AT&T 19-Nov-15 1500 33.46 ITC Holding 19-Nov-15 1,550.0 33.30 Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Analysis (Invested Portfolio): Statistics SMF Portfolio S&P 500 Difference Dividend Yield 1.91 2.09 -0.18 Price to Earning 16.30 18.66 -2.36 Price to Cash flow 12.29 10.90 1.39 EV/Sales 2.07 2.22 -0.15 EV/EBITDA 11.12 12.68 -1.56 Profit Margin 9.10 8.32 0.78 Return on Assets 4.85 2.72 2.13 Beta 0.96 1.00 -0.04 Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Performance: Individual Returns Individual Stock Performance 20.0% 14.7% 15.0% 10.0% 6.3% 5.1% 5.0% 3.9% 3.6% 1.5% 1.4% 0.8% 0.9% 0.4% 0.1% 0.0% 0.0% 0.0% -1.6% -0.3% -2.6% -5.0% -5.0% -10.0% Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Performance: Invested Portfolio Portfolio Statistics Return Total Return Mean Return (Annualized) Mean Excess Return (Annualized) Risk Standard Deviation (Annualized) Downside Risk (Annualized) Risk/Return Sharpe Ratio Jensen Alpha Information Ratio SMF Invested Portfolio S&P 500 1.54 28.73 10.78 0.88 16.21 12.28 8.48 12.18 7.90 1.60 8.98 1.88 0.92 Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Portfolio Performance: Total Portfolio Sep 22, 2015 December 1, 2015 ETF 1,860,328.77 1,146,099 Equity - $869,774 Cash 327 $8,067 Total 1,860,655.77 $2,023,940 Return 8.78% Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Worst Performing Stocks: Polaris Consumer Discretionary: Leisure Products Unrealized Loss of 5.3% Reason for Underperformance Strong Dollar, softening economies abroad Sluggish Oil and Agricultural Markets Constraints for fast growing motorcycle business Future Outlook Zacks Rating: 1.85 (1-Buy, 5-Sell) 12/3/15 Operational Constraints Lifted Taking market share from Harley Davidson New ORV Mfg Facility, JV for Emerging Markets Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management

Best Performing Stock: ITC Holding Consumer Discretionary: Leisure Products Unrealized gain of 14.7% Reason for over performance Exploring sale options Sole U.S. Transmission only company Future Outlook Generate a lot of interest from infrastructure funds Utility M&A are up among weaken electricity sales FERC Judge to decide on ROE reduction in Mid-Dec Investment Philosophy and Strategy Process & Procedure Risk Economic Outlook Portfolio Analysis Selected Holdings Performance Management