Investment Advisory Board Presentation Undergraduate Student Managed - PowerPoint PPT Presentation

STUDENT MANAGED FUND Investment Advisory Board Presentation Undergraduate Student Managed Fund Team White Thursday November 21 st , 2019 11/21/2019 Student Managed Fund - Team White 1

Agenda Team Overview Investment Process Portfolio Performance Current Holdings & Outlook Appendix / Q&A 11/21/2019 Student Managed Fund - Team White 2

Team Overview 11/21/2019 Student Managed Fund - Team White 3

Team White Managers Team Roster Andrew Sean Dhvani Alex Flug Kyle Tesei Blackmore Monaghan Visaria Julia Michael Matthew Nicholas Austin Goll Alex Greco DeMarkey Burnett Grohocki Beckwith Leadership Positions Sector Research Allocation GICS Sectors Analyst 1 Analyst 2 Co-Lead Managers: Healthcare Alex Flug Julia DeMarkey Andrew Blackmore § Energy Alex Greco Sean Monaghan Alexander Flug § Consumer Staples Matthew Grohocki Alex Flug Portfolio Manager: Industrials Andrew Blackmore Nick Beckwith Consumer Discretionary Kyle Tesei Matthew Grohocki Kyle Tesei § Materials Nick Beckwith Alex Greco Digital Media Manager: Real Estate Julia DeMarkey Austin Goll Sean Monaghan § Technology Sean Monaghan Kyle Tesei Telecommunications Services Dhvani Visaria Michael Burnett Communications Manager: Financial Services Austin Goll Dhvani Visaria § Dhvani Visaria Utilities Michael Burnett Andrew Blackmore 11/21/2019 Student Managed Fund - Team White 4

Investment Process 11/21/2019 Student Managed Fund - Team White 5

Investment Process Investment Philosophy Decision Making Process Team White seeks to find businesses that we can 1) Each business is discussed 1 week in advance § understand , are well-managed , and are 2) Two Analysts per pitch team competitively positioned to drive future value a) Typically 30 minutes of presentation and 30 minutes of discussion before voting We believe in buying exceptional business at b) Must receive 8/11 (72.7%) votes to pass § attractive valuations, well below their intrinsic value , c) Determine Allocation (8/11 votes) in order to drive performance for the fund i. Range: 5-10% ii. Must get 8/11 to move to next stage of Our approach to each investment is unique and allocation range § tailored to each specific company through our 3) Two-Page Report is written bottom-up analysis of every business 4) Trade documents submitted by PM Timeline Total Pitches: 15 Investments: 10 Acceptance Rate: 66.7% September October November = No Buy 11/21/2019 Student Managed Fund - Team White 6

Portfolio Performance 11/21/2019 Student Managed Fund - Team White 7

Portfolio Overview Portfolio Allocation Portfolio Performance Equity Performance Equity Portfolio Breakdown 11/21/2019 Student Managed Fund - Team White 8

Portfolio Breakdown & Unrealized Gains Sector Allocation Unrealized Gains 11/21/2019 Student Managed Fund - Team White 9

Current Holdings 11/21/2019 Student Managed Fund - Team White 10

Analyst Co An Cover erage: e: Julia DeMarkey & Kyle Tesei UnitedHealth Group (NYSE:UNH) Business Description YTD Stock Performance (vs. SPY) Two Primary Business Segments: 24.00% 1. Health Benefits (UnitedHealth Group) 18.00% a. Individual & Employer (30%) 12.00% b. Medicare & Retirement (41%) 6.00% c. Community & State (24%) 0.00% d. Global (5%) -6.00% 2. Health Services (Optum) -12.00% a. Optum Health (24%) Entry: 9/30/19 @ $213.64 -18.00% b. Optum Insight (9%) 8 9 9 9 9 9 9 9 9 9 9 1 1 1 1 1 1 1 1 1 1 c. Optum Rx (67%) 1 - - - - - - - - - - - c n b r r y n l g p t a p u e a u u c a e e M J O D A M J F J A S § UNH is primarily a healthcare benefits provider and issuer of Investment Thesis health insurance Generates 79% of revenue from premiums § § Remainder comes from sales of healthcare products, services, Cost Advantage and investment Size and scope allows for cross-selling • Recent M&A: § Patients Like Me, Med Express, XL Health, Catmaran, & Davita Optum provides unique positioning • Medical Group Growth Potential § Acquisitions add synergies to UNH and allow UNH to cross-sell their business segments to new customers. Growth in enrollment and lower rates • § Cross-selling, UNH will sell UnitedHealth Care to Optum users Strategic acquisitions • and sell Optum to UnitedHealth Care users. Risks: Market Control § Federal regulation and healthcare policy State control and integration • § Slim margin of error in cost calculations § Information Breaches 11/21/2019 Student Managed Fund - Team White 11

Analyst Co An Cover erage : Nicholas Beckwith & Michael Burnett Intel Corp. (NYSE:INTC) Business Description YTD Stock Performance (vs. SPY) 29.00% Intel is one of the worlds largest semiconductor • 24.00% manufacturers. They design and manufacture 19.00% microprocessors for the global PC and data center 14.00% 9.00% markets. 4.00% Future growth opportunities include, Internet of Things, • -1.00% AI, memory, and self driving cars. -6.00% Entry: 10/4/19 @ $50.34 Four Primary Business Segments: -11.00% 1. Client Computing Group (52%) 8 9 9 9 9 9 9 9 9 9 9 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - c n b r r y n l g p t p u e a u c a e a u e J O D M A • Semiconductors J F M A S J Investment Thesis Microprocessors • 2. Data Center Group (32%) 3. Memory and Programmable Solutions (6%) Dominant Market Positioning 4. Internet of Things Group (5%) Significant customer base • • AI technology Primary Customers: PC-centric • HP, Lenovo, and Dell (76% of PCs) • Superior Products Recent M&A Data Center business provides sticky • • Mobile Eye, Omnitek, Barefoot Networks, Softmachines relationships Risks Rapidly changing technology environment • Vision for the Future Global trade conflicts • Strategic acquisitions and AI • Cyber security and privacy • 11/21/2019 Student Managed Fund - Team White 12

Analyst Co An Cover erage : Alex Greco & Sean Monaghan FedEx Corp. (NYSE:FDX) Business Description YTD Stock Performance (vs. SPY) Four Primary Business Segments: 21.00% 1. FedEx Express (53.56% of revenue) 11.00% a. Urgent courier services available 365 days a year b. 90% of Americans live within 5 miles of a drop-off 1.00% location FedEx Ground (29.45% of revenue) 2. -9.00% a. Increasing services to 7 days a week Entry: 10/2/19 @ $139.77 b. Transitioning to an independent service provider model -19.00% 8 9 9 9 9 9 9 9 9 9 9 (ISP) 1 1 1 1 1 1 1 1 1 1 1 - - - - - - - - - - - c n b r r y n l g p t a p u e a u u c a e e M J O D A M 3. FedEx Freight (10.88% of revenue) J F J A S Investment Thesis a. Specializes in Less-than-Truckload shipping at flat rates b. Recent advances in shipping and operations technology 4. FedEx Services (6.11% of revenue) Market Overreaction a. Provides sales, marketing, IT, and customer service for our customers and other lines of business. Down ~46% at entry • Recent M&A: Significant value still present in FDX • Growth Potential TNT Express (Europe) • Ecommerce expansion • Flying Cargo Group (Israel) • Global expansion • Cargex (Latin America) • Growing Infrastructure Investment and specialization • 11/21/2019 Student Managed Fund - Team White 13

Outlook 11/21/2019 Student Managed Fund - Team White 14

Fund Outlook Investment Tracking Individual Responsibilities Portfolio Management: Analyst Responsibilities: • • Utilizing software programs to track portfolio Daily tracking of businesses and sector research • • movements daily (Bloomberg, FactSet, etc.) Notify team of positive/negative developments • Keeping up with earning releases and relevant Constant idea generation to feed pipeline • • company/industry news Group Initiatives: • Revisiting Pitches: Work with advisors to ensure efficient research • • Stay up to date with rejected stocks and valuation methods • Determine if we should reconsider a given stock Collaborate on ideas as a group and be • • if it has fallen below an agreed upon price level straightforward with individual opinions Timeline Team Goals • Important Dates: • Allocation Strategy: • Portfolio Snapshot – Mon, Nov 18 th • Achieve 100% allocation into equities by end of • IAB Presentation – Thur, Nov. 21 st February • Team White Fall Report – Fri, Dec. 5 th • Pipeline is essential to ensure optimal picks Winter Break – Sun, Dec. 15 th – Tue, Jan. 21 st • 10 Stocks (Nov.) à 17-20 Stocks (May) • • Pitch Pipeline: • Active Management: • Maintain 2 quality pitches per week • Reallocate portfolio based on risk assessments • Utilize winter break to actively research • Further diversify by increasing number of individual names and generate ideas for next names in the portfolio semester Avoid unforeseen aggregation risk • 11/21/2019 Student Managed Fund - Team White 15

Questions? 11/21/2019 Student Managed Fund - Team White 16

Appendix 11/21/2019 Student Managed Fund - Team White 17