Value Investing Program Student Information Session February 5, - PowerPoint PPT Presentation

Value Investing Program Student Information Session February 5, 2013, 12:30 - 2:00, Uris 301

Agenda ● Introduction to the Heilbrunn Center : Who we are and what we do ● Investing at Columbia : Something for everyone ● The Value Investing Program – The Application Process : What is entailed – Testimonials : Advice from the second-years Columbia Business School 2

Introduction: Heilbrunn Staff ● Louisa Serene Schneider, Senior Director: 212-851-5992 ● Julia Kimyagarov, Assistant Director: 212-854-1933 ● Marci Zimmerman, Assistant Director: 212-851-9558 ● Contact Info : – Email: valueinvesting@columbia.edu – Offices – 2M – Office Hours: Email for appointment – Website: www.grahamanddodd.com – LinkedIn group: Value Investing Network of Heilbrunn Center at Columbia Business School Columbia Business School 3

Heilbrunn Center: Overview ● Our mission is to lead the theory and practice of investing ● Our approach  Walter Schloss Investing Archives / Library VI Program for   eNewsletter – Graham MBA students & Doddsville Research 43 investors   Heilbrunn Research Initiatives & Education teaching as Board Special Projects adjunct faculty  Heilbrunn Center Investment Ideas  Annual Letter Club CSIMA education  series Outreach  Graham and Dodd Breakfast Class speakers   CSIMA Conference Pershing Square   Networking events Challenge Moon Lee Prize  Discussion forums  Sonkin Prize  Recruiting support – mentors, etc  Practitioner Chair  Recognition of excellence   Industry Partnerships – CSIMA, NYSSA, etc. Columbia Business School 4

“Graham & Dodd” Investing Approaches to Investing Long Term Short Term Efficient Markets • Asset Allocation • Cost Minimization Fundamental Fundamental Technical (Value) (Value) • Momentum • Price/Volume Levels Changes Patterns • Current Price • Market Price vs. + Forecast Intrinsic Value Change ( Micro and We are here = Macro) “Graham & Dodd” Long only funds, Hedge funds, Mutual funds, Private Equity, separate accounts, etc. Columbia Business School 5

Value Investing Process Graham & Dodd Investing Framework REVIEW & RISK SEARCH VALUATION RESEARCH MANAGMENT  Cheap, Ugly,  Portfolio  Asset coverage  Key Issues Obscure management  Earnings Power  Collateral Evidence  Otherwise Ignored  Insurance  Franchise & growth  Personal Biases positions  Areas where you analysis have expertise /  Some ‘edge’ (circle of Diversification competence)  Margin of Safety  Patience – Default Strategy Columbia Business School 6

Heilbrunn Center Leadership Bruce Greenwald , the Robert Heilbrunn Professor of Finance and Asset Management, directs the Heilbrunn Center for Graham & Dodd Investing and the academic program in value investing. Tano Santos , the David L. and Elsie M. Dodd Professor of Finance, is the research director of the Heilbrunn Center for Graham & Dodd Investing. Louisa Serene Schneider , the administrative director of the Heilbrunn Center for Graham & Dodd Investing, is responsible for all operational aspects of the center. Executive Advisory Board William von Mueffling ’95, Chair David Greenspan ’00 Edwin Schloss Cantillon Capital Management Slate Path Capital Walter & Edwin Schloss Associates Andrew S. Gundlach ’01 Paul Sonkin ’95 Will Browne Tweedy, Browne Company, LLC Arnhold & S. Bleichroeder Advisors LLC GAMCO Investors, Inc. Jennifer Wallace ’94 Budge Collins Thomas Russo Collins/Bay Island Securities Gardner Russo & Gardner Summit Street Capital Management Columbia Business School 7

Value Investing Faculty Affiliations: 2012-2013 Arnaud Ajdler, Crescendo Partners  Paul Johnson, Nicusa Capital Partners  Gavin Albert, Soros Fund Management, LLC  Terrence Kontos ’05, TIAA-CREF  Eric Almeraz ’02, Apis Capital Advisors, LLC Dan Krueger ’02, Owl Creek Asset Management, LP   Christopher Begg, East Coast Asset Management, LLC  Lauren Krueger ’02, Esopus Creek Advisors, LLC  Avi Berg ’97, Jennison Associates, LLC  Yen Liow, Ziff Brothers Investments  Naveen Bhatia, 40 North Industries, LLC  Michael Mauboussin, Legg Mason Capital Management  Mike Blitzer ’04, Kingstown Capital Management, LP  Ian McDonald, Hilltop Park Associates  Michelle Borre ’96, Oppenheimer Funds, Inc. Neal Nathani, Axial Capital Management   Andrew Brenner, Columbia Business School  Kevin Oro-Hahn ’10, Ingalls & Synder  Ryan Brown, Davis Selected Advisers  T. Charlie Quinn ’06, Gardner, Russo, and Gardner  Ciara Burnham ’93, Evercore Partners  Rishi Renjen, Maverick Capital  Margaret Cannella ’76, CHF International, LLC  Jon Salinas ’08, Marble Arch Investments  Ellen Carr, The Capital Group Tano Santos, Columbia Business School   Mark Cooper ’02, PIMCO  Guy Shanon ’99, Kingstown Capital Management, LP  Michael Corasaniti ’92, Tourmalet Advisors  Ken Shubin-Stein, Spencer Capital Management  Wouter Dessein, Columbia Business School  Paul Sonkin ’95, GAMCO Investors, Inc.  Peter Eliot ’04, Capital World Investors  Joseph Stiglitz, Columbia Business School  Jefferson Gramm ’03, Bandera Partners, LLC Patrick Sullivan ’11, Ziff Brothers Investments   Joel Greenblatt, Gotham Capital  Tom Tryforos ’84, Columbia Business School  Bruce Greenwald, Columbia Business School  Artie Williams ’02, Summit Street Capital Management  David Horn ’02, Kiron Advisors, LLC  Dan Yarsky ’06, Moore Capital  New courses: Columbia Business School 8 Misunderstood Securities, Lauren Krueger (Fall 2012) From Feast to Famine (And Back Again), Margaret Cannella, Ellen Carr (Block Week, January 2013)

Courses Supported by Heilbrunn Center Fall Semester Spring Semester Course Name Professor Course Name Professor ¤ Advanced Investment Research Ken Shubin ‐ Stein Applied Value Investing* Artie Williams/T. Charlie Quinn † Applied Security Analysis 1&2 Jon Salinas/Naveen Bhatia Applied Value Investing* Avi Berg/Michelle Borre † Applied Security Analysis (EMBA) Ciara Burnham † Applied Value Investing Jeff Gramm/Terry Kontos † Applied Value Investing(EMBA) Tom Tryforos Applied Value Investing* Mark Cooper † Applied Value Investing (EMBA) Arnaud Ajdler † Applied Value Investing Neal Nathani Applied Value Investing* Mike Blitzer/Guy Shanon † Applied Value Investing Eric Almeraz/David Horn † Applied Value Investing Rishi Renjen/Kevin Oro ‐ Hahn † Credit Markets and Leveraged Buy ‐ Outs Margaret Cannella † * Credit Markets and Leveraged Buy ‐ Outs Margaret Cannella Distressed Value Investing Dan Krueger † (EMBA) † * X Economics of Strategic Behavior Bruce Greenwald † * X Economics of Strategic Behavior Wouter Dessein † From Feast to Famine (And Back Again) Margaret Cannella/Ellen Carr † Security Analysis Michael Mauboussin Mental Models* Yen Liow/Patrick Sullivan † Security Analysis Ian McDonald/Ryan Brown † Security Analysis Gavin Albert/Michael Corasaniti † * Seminar in Value Investing (EMBA) Paul Johnson Special Situations* Joel Greenblatt/Dan Yarsky † * Value Investing Bruce Greenwald/Tano Santos † * Seminar in Value Investing (EMBA/MBA) Paul Johnson † * Value Investing with Legends Bruce Greenwald/Tano Santos Summer Semester Note: All VI classes have only one prerequisite: Capital Markets. Course Name Professor † Advanced Investment Research Peter Eliot In some cases, Capital Markets can serve as a co-requisite (contact the † Globalization (EMBA) Joseph Stiglitz/Bruce Greenwald Heilbrunn Center for more information). All courses depend on availability and † are subject to change without notice. Security Analysis Christopher Begg † Security Analysis Paul Sonkin Value Investing Program Application* † Bidding ¤ Additional screening required Columbia Business School 9

Value Investing Program for You (2013-2014) ● The Program will be one block : CY14 = 9,000 points ● The Program will consist of the following courses : 1. Applied Value Investing (3 credits) – Fall 2013 2. Special Situations (3 credits) – Fall 2013 3. Economics of Strategic Behavior (3 credits) – Fall 2013 or Spring 2014 4. Distressed Value Investing (3 credits) – Spring 2014 5. Value Investing (1.5 credits) or Value Investing with Legends (3 credits) – Spring 2014 ● If you are admitted into the program you must complete all 5 classes in the program to be considered a Value Investing Program Graduate. ● All courses depend on availability and are subject to change without notice. Columbia Business School 10 *Name subject to change

Seminar in Value Investing • POINTS: You will be charged 9,000 points for the five classes that comprise the program (Applied Value Investing; Special Situations; Distressed Value Investing; Value Investing or Value Investing with Legends; and Economics of Strategic Behavior), in addition to the points you were already charged for the Spring 2013 Seminar in Value Investing session. Columbia Business School 11