Introduction to the Wharton Investment Management Fund (WIMF) George - PowerPoint PPT Presentation

Introduction to the Wharton Investment Management Fund (“WIMF”) George Schultz Head Fund Fellow schultzg@wharton.upenn.edu

What is the WIMF?  Founded in 1994  Student-run equity fund  Manage money on behalf of Endowment & WGA  Value-oriented, fundamental approach to investing  Long-only; Equity-only; US (or ADR) only  AUM of c. $1 million  Actively managed by 12 Fund Fellows  The best way for Wharton MBAs to get involved in investment management

Goals of the WIMF  Outperform our benchmark  Have achieved in 10 of past 16 years  Compounded annual return of 11.7% vs. 6.5% for S&P 500  Provide mentorship to students pitching to the club  Provide recruiters with exceptionally qualified candidates  Work with the IM club to strengthen the overall experience at Wharton  Establish a valuable network among students and alumni

WIMF Performance WIMF Returns Year WIMF S&P 500 Relative 1996 14.8% 28.9% (14.1%) 1997 25.4% 17.3% 8.1% 1998 53.7% 45.5% 8.2% 1999 -4.4% 19.5% (23.9%) 2000 24.5% -10.1% 34.6% 2001 13.8% -13.0% 26.8% 2002 -5.5% -23.4% 17.9% 2003 33.2% 26.4% 6.8% 2004 21.7% 9.0% 12.7% 2005 -0.8% 3.5% (4.3%) 2006 20.3% 13.6% 6.7% 2007 -7.8% 4.2% (12.0%) 2008 -41.3% -37.0% (4.3%) 2009 41.5% 23.3% 18.2% 2010 26.4% 15.1% 11.4% 2011 1.9% 2.1% (0.2%) 2012 YTD (1) 14.1% 16.6% (2.5%) Compounded Annual Gain: 1996-2012 11.7% 6.5% 5.2% Overall Gain: 1996-2010 616.5% 282.8% (1) YTD through 9/14/12

Current Portfolio Name Ticker Position % Total Analyst Cash $73,663 6.2% S&P500 SPY 478,397 40.2% CBS CBS 74,077 6.2% Doug Holm Visa V 68,065 5.7% Neal Dignum Qualcomm QCOM 67,021 5.6% John Jessup Owens Corning OC 65,611 5.5% Dan Chen Western Union WU 58,821 4.9% Doug Holm Rock-Tenn RKT 55,742 4.7% Amir Fardshisheh Sensata ST 52,856 4.4% Andy Berman Time Warner Cable TWC 38,061 3.2% Brad Murray Sinclair Broadcast SBGI 33,764 2.8% Steve Schembri XRS Corp (fka Xata) XATA 32,881 2.8% Steve Schembri Gray Television GTN 30,909 2.6% Doug Holm BorgWarner BWA 29,046 2.4% Andy Berman Metropolitan Health Networks MDF 26,878 2.3% Amir Fardshisheh ChinaCast CAST 4,594 0.4% Sara M. / George S. Total 1,190,385 100.0%

Fund Structure  Semi-concentrated portfolio  Currently hold 14 individual name stocks  Diversified by industries and sub-sectors  Value-focused with medium/long-term holdings  Goal: exceed returns of S&P 500  Success of the WIMF based on contributions of IM Club and Fund Fellows  Three ways to get involved:  Equity Research Analyst  Assistant Fund Fellow  Fund Fellow

Become an Equity Research Analyst  Present an idea to the WIMF during a weekly meeting  Requirements will be discussed by Amir  Work with a mentor for 1 week prior to the pitch  Can put “Equity Research Analyst for Wharton Investment Management Fund” on your resume  To schedule a pitch, sign up on WebCafe

Become an Assistant Fund Fellow  Details:  Sit in on all Fund Fellow meetings  Work closely with Fund Fellows on managing the portfolio; perform research and recommend new investment ideas  Expect to contribute 15 hours per week  Why?  Applied role ideal for those passionate about investing and serious about a career in investment management  Opportunity to work closely with a like-minded group  Participate in Fund Fellow treks; meet successful alumni  Better chance to become a Fund Fellow

Become an Assistant Fund Fellow  Application Requirements:  Submit a 1-2 page long or short stock pitch, including any relevant qualitative and quantitative information  Submit a statement of interest explaining why you are qualified and expressing your interest in investing  Expect to complete an informal interview and stock pitch presentation Apply by September 28th to wimfaff13@gmail.com

Become a Fund Fellow  Toward the end of each semester, the 2 nd year Fund Fellows will elect up to 6 new Fund Fellows  Traits of those who get elected:  Participation in weekly IM club meetings  Passion for investing  Ability to generate high quality investment ideas  Primary path to becoming a Fund Fellow → serving as an Assistant Fund Fellow  Further questions? E-mail me

Current Fund Fellows George Schultz Steve Schembri Amir Fardshisheh Doug Holm John Jessup Andrew Berman Head Fellow Director of Research Director of Research Alumni Relations Head Trader Director of IT Armistice Capital Glade Brook Capital Fidelity T. Rowe Price MFS Seneca Capital Sara McLinden Daniel Chen Neal Dignum Brad Murray Andrea Tulcin Sam Tisch Social Chair Fund Fellow Fund Fellow Fund Fellow Fund Fellow Fund Fellow Viking Global Franklin Templeton JAT Capital Orbis Clear Bridge Advisors D.E. Shaw