M C I NTIRE I NVESTMENT I NSTITUTE A T THE U NIVERSITY OF V IRGINIA - PowerPoint PPT Presentation

M C I NTIRE I NVESTMENT I NSTITUTE A T THE U NIVERSITY OF V IRGINIA Club Introduction Prepared by the MII Managers | September 5 th , 2013 M c I n t i r e I n v e s t m e n t I n s t i t u t e 1

MII’ S M ISSION AND O RGANIZATION 1) Who is in MII? 2) What Does MII Do? 3) Why Should I Consider Joining MII? 4) How Can I Join MII? M c I n t i r e I n v e s t m e n t I n s t i t u t e 2

L EVELS OF I NVOLVEMENT Managers (4-6+ hrs) Associates (3+ hrs) Analysts (1-2 hrs) Members (1-2 hrs) M c I n t i r e I n v e s t m e n t I n s t i t u t e 3

MII IS L EAD BY A M ANAGEMENT T EAM OF T EN S TUDENTS Grong ¡Wang, ¡CIO ¡ Ryan ¡Rechkemmer, ¡VP ¡ Kelvin ¡Wey, ¡CFO ¡ Kevin ¡Wang, ¡CMO ¡ Jonathan ¡Wulkan, ¡President ¡ History ¡and ¡Math ¡‘15 ¡ Commerce ¡‘14 ¡ Commerce ¡‘14 ¡ Pre-­‑Commerce ¡‘16 ¡ Commerce ¡‘14 ¡ Alvin ¡Kuai ¡ Joe ¡Caiello ¡ Ajay ¡Sundar ¡ Kunal ¡Arora ¡ Sean ¡Xiaoyi ¡Yu ¡ Commerce ¡‘15 ¡ Commerce ¡’15 ¡ Commerce ¡‘14 ¡ Economics ¡‘14 ¡ Commerce ¡‘15 ¡ M c I n t i r e I n v e s t m e n t I n s t i t u t e 4

MII W ANTS S TUDENTS F ROM A LL B ACKGROUNDS AND Y EARS Diversity of membership leads to better discussions, investment ideas, and decisions Our desired membership is diverse across genders, majors, and nationalities M c I n t i r e I n v e s t m e n t I n s t i t u t e 5

MII I S G UIDED BY K EY S UPPORTERS John Griffin MII Benefactor Professor Patrick Dennis Dean Carl Zeithaml Dean, McIntire School of Commerce MII Faculty Adviser M c I n t i r e I n v e s t m e n t I n s t i t u t e 6

MII’ S M ISSION AND O RGANIZATION 1) Who is in MII? 2) What Does MII Do? 3) Why Should I Consider Joining MII? 4) How Can I Join MII? M c I n t i r e I n v e s t m e n t I n s t i t u t e 7

MII IS F IRST AND F OREMOST A L EARNING O PPORTUNITY Brainstorm and Research Companies Share our Ideas at Weekly Meetings Learn by Investing Real Money Attend Education Sessions and Speeches M c I n t i r e I n v e s t m e n t I n s t i t u t e 8

MII C OLLECTS F UNDAMENTAL , V ALUE A DDED R ESEARCH Customers 360 ° Company Suppliers Competitors Mosaic Industry Experts M c I n t i r e I n v e s t m e n t I n s t i t u t e 9

MII M EMBERS ARE L IKE D ETECTIVES – W E S CRUTINIZE C OMPANIES M c I n t i r e I n v e s t m e n t I n s t i t u t e 10

MII I NVESTS IN B USINESSES WITH S TRONG F UNDAMENTALS M c I n t i r e I n v e s t m e n t I n s t i t u t e 11

MII B ETS A GAINST V ALUE -D ESTROYING C OMPANIES Fads Frauds Fading Stars Companies with Companies that mislead Companies with obsolete unsustainable growth customers and investors products and/or shrinking markets Often sell consumer goods Often use misleading like clothing, dietary marketing or “cook the Often “late to the game” products, or toys books” or unable to adapt to changing competitive Examples: Crocs, Green Examples: Enron, New environments Mountain Coffee Roasters, Oriental Education, Herbalife Sunbeam, WorldCom Examples: Canon, GameStop, Garmin, Best Buy, Nokia M c I n t i r e I n v e s t m e n t I n s t i t u t e 12

MII M ANAGES A P ORTFOLIO V ALUED AT A ROUND $578,000 M c I n t i r e I n v e s t m e n t I n s t i t u t e 13

MII’ S M ISSION AND O RGANIZATION 1) Who is in MII? 2) What Does MII Do? 3) Why Should I Consider Joining MII? 4) How Can I Join MII? M c I n t i r e I n v e s t m e n t I n s t i t u t e 14

J OIN MII TO L EARN A BOUT B USINESS AND I NVESTING “Short” a Company P / E R a t i o Earnings Estimates WACC w o l F h s a C d e t n u o c s i D Margin of Safety E B I T D A R Hedge Funds Sell-Side 10-Q Price vs. Value C A G R M c I n t i r e I n v e s t m e n t I n s t i t u t e 15

J OIN MII TO P REPARE Y OURSELF FOR THE C OMMERCE S CHOOL M c I n t i r e I n v e s t m e n t I n s t i t u t e 16

J OIN MII TO S TART Y OUR I NVESTING T RACK R ECORD M c I n t i r e I n v e s t m e n t I n s t i t u t e 17

J OIN MII TO P REPARE FOR A C AREER IN F INANCE M c I n t i r e I n v e s t m e n t I n s t i t u t e 18

J OIN MII TO U NDERSTAND P ERSONAL F INANCE M c I n t i r e I n v e s t m e n t I n s t i t u t e 19

MII H AS O VER $124,000 W AITING TO BE I NVESTED IN Y OUR I DEA ! M c I n t i r e I n v e s t m e n t I n s t i t u t e 20

MII’ S M ISSION AND O RGANIZATION 1) Who is in MII? 2) What Does MII Do? 3) Why Should I Consider Joining MII? 4) How Can I Join MII? M c I n t i r e I n v e s t m e n t I n s t i t u t e 21

MII W ANTS S TUDENTS F ROM A LL B ACKGROUNDS AND Y EARS Diversity of membership leads to better discussions, investment ideas, and decisions Our desired membership is diverse across genders, majors, and nationalities M c I n t i r e I n v e s t m e n t I n s t i t u t e 22

F OUR -P HASED M EMBERSHIP S ELECTION P ROCESS § Attend an education session on Friday, September 6 th , from 10 – Education 11 AM or 3 – 4 pm in RRH 246 Session § Learn the basics of stock analysis § Prepare a one-page stock memo outlining your best long or short idea ( due by 9:59 PM on September 11 th ) Stock Idea § Further instructions will be provided at the education sessions Schedule a 10 - 15 minute conversation with an MII Manager § ( September 12 th through September 16 th ) Conversation Learn about each other, discuss your idea, and ask questions § § Pitch a stock! Involvement § Attend at least 60% of meetings (Exceptions for members who have legitimate time conflicts – talk to Ryan) M c I n t i r e I n v e s t m e n t I n s t i t u t e 23

Q UESTIONS ? 24 ? M c I n t i r e I n v e s t m e n t I n s t i t u t e