General Body Meeting 09.01.11. Mutual Investment Club of Cornell Agenda Introduction to MICC How to Get Involved Future Events Macro Update

General Body Meeting 09.01.11

Mutual Investment Club of Cornell

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Agenda

Introduction to MICC How to Get Involved Future Events Macro Update Portfolio Update


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MICC Organization


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Introduction to MICC

$50,000 Mutual Fund Dates back to 1998 Created through merger in Spring 2010

between two largest investment clubs at the time

Focus on Membership Education


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General Body Meetings

Every Thursday 5:15PM – 7:15PM (Malott 251) 5:15PM – 6:15PM: Education Series 6:15PM – 7:15PM: General Body

Meeting Club announcements News updates Investment pitches and decisions


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Executive Board Introduction President – John Yoshida Vice President – Miles Moen Portfolio Manager – Terence Hu VP of Public Relations – David Kim Senior Analysts


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Sector Groups

Consumer – Andrew Schrichte Energy – Mihir Patel Financials – John Troncoso Healthcare – Eric Hoffman Industrials – Peter Cui Macro – Zach Peskin Media & Telecom – Dan Han Quant – Ali Yazdi Real Estate – Derek Creadore Technology – Aleks Zvorinji


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How to Get Involved?


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Opportunities for Members

Junior Analyst Program Newsletter Team Education Series MICC Events


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Junior Analyst Program

Description Work closely with senior analysts in

covering a sector Pitches to enhance our portfolio Pay close attention to news within your

sector

Apply online: cornell-micc.com/jobs/ Notifications will be made early next

week


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Newsletter Team

Description Write about a topic relevant to financial

markets or investing that you’re interested in

Be published in a newsletter that is distributed throughout campus (or even internationally!)

Write blog posts for our website

Talk to David Kim (sk852)


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Education Series

Primary vehicle of learning basic concepts of investing and financial analysis

Selected Topics What is a stock? Presentation skills Introduction to modeling


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Future Events


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Future Events

Cornell Undergraduate Stock Competition

NYSSA Investment Research Challenge Various Recruiting Events

NYC Trip Social Event: Poker?


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1st Annual CUSC

Intercollegiate stock competition Competition dates: 9/20 – 9/21 First Prize: $3,000. Second Prize: $1,500

Cornell internal competition 9/10 Presentation Send email to

[email protected] by 9/2 Include name, major and year

mailto:[email protected]


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CFA Institute Investment Research Challenge

International research competition Written report + Presentation

Team-based First round: Mid-late January Workshops throughout the Fall

Semester

Contact John Yoshida (njy3) if interested


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Macro Update

Zach Peskin


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Global Macro Update

Fed plans to keep interest rates low until 2013

Growth stalls in the U.S. Debt Ceiling debate/downgrade/super-

committee Fiscal stalemate Europe debt/growth crisis Austerity in Europe Consumer confidence at lowest levels

since Carter administration


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Global Macro Update

Global fixed income rally Yield on 10yr US Treasury notes dropped

below 2% Negative real rates

Sell-off in global equity markets Gold rally (bubble?) Continued weakness in housing and

financial industry Sharp pullback in Oil (WTI/BRENT

divergence) Dramatic increases in volatility


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Portfolio Review

Terence Hu


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Post Summer Portfolio Review

Comparison of past three month returns • MICC return: -5.37%• Dow Jones return: -8.02%• S&P 500 return: -9.83%

MICC’s performance over the summer was affected by the macro economic environment


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CYB (Chinese Yuan ETF) Investment

Thesis Diversification benefits Chinese Yuan definitely undervalued;

momentum of appreciation Political pressure to appreciate Yuan

due to instability caused by inflation Stable store of value; no downside risk Chance of one-off Yuan appreciation


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CYB Summer Performance

Return: 0.3%


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Reasons to sell CYB

Although original thesis holds true, Chinese government likely to maintain slow and steady appreciation

Poor tracking performance High opportunity cost


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VXX (VIX ETF) Investment Thesis

Convenient hedge against volatility Markets not entirely stable; several

risks on horizon: Euro crisis Oil; middle east unrest Inflation in emerging markets US credit worries


VIX at lowest point since 0726


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VXX Summer Performance

Return: 68.2%


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Reasons to sell VXX

Markets have stabilized Sell when up to realize profits Perhaps invest in VXX during a period

of low volatility in the future


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Thanks for coming by!

Junior Analyst Applications Newsletter Team

Next Week: Portfolio Review

Documents

General Body Meeting 09.01.11. Mutual Investment Club of Cornell Agenda Introduction to MICC How to Get Involved Future Events Macro Update