P ORTFOLIO M ANAGEMENT Spring 2015 MSU Student Investment Association

PORTFOLIO MANAGEMENTSpring 2015

MSU Student Investment Association

AGENDA

• Macro Trends & Valuations• Sector Weights • Sector Trends & Our Holdings • Returns


MACRO TRENDS- DHRUV


Source: tradingeconomics.com

MACRO TRENDS- DHRUV


Source: J.P. Morgan Funds Guide to the Markets, Q2 2015

MACRO TRENDS- DHRUV


VALUATIONS- DHRUV


• SIA Fund is high relative to the short and long-term average

• Small cap value average currently @ 16.6 relative to the 20 year average of 14.5

Sector Price/Earnings

Technology 39.93

Industrials 16.42

Financials 13.79

Consumers 21.50

Energy 17.09

Materials 17.07

Healthcare 68.78

Index Price/Earnings

SIA Total 24.37

S&P 500 20.61

Russell 2000V 24.84

VALUATIONS- DHRUV

Source: J.P. Morgan Funds Guide to the Markets, Q2 2015

SECTOR WEIGHTS


SIA Portfolio Benchmark Over/UnderTechnology 13.71% 13.52% 0.19% Business Software & Services (BLKB) 4.21% Application Software (AVG) 5.03% Diversified Electronics (DLB) 4.47% Consumers 18.30% 20.21% -1.91% Food (CALM) 10.99% Textile-Apparel Clothing (GIII) 7.31% Healthcare 8.28% 9.19% -0.91% Medical Appliances and Equipment (SYK) 8.28% Financials 20.75% 26.18% -5.43% Asset Manadement (LAZ) (ECPG) 11.31% Regional Bank (PB) 3.86% Money Center Bank (FMER) 5.57% Industrials 16.45% 15.83% 0.62% General Contractors (CBI) 8.62% Industrial Eletrical Equiptment(ENS) 7.83% Energy 15.78% 7.52% 8.26% On Shore Drilling(PTEN) Off Shore Drilling(HLX) 15.78% Materials 6.74% 7.55% -0.81% Agriculture Chemicals (MOS) 6.74%

FINANCIALS - DHRUV


FINANCIALS - LAZARD (LAZ)


Industry: Investment Banking & Asset ManagementMarket Cap: $7.24 BPurchase Price: $23.37Closing Price as of 4/15/15: $56.02HPY (holding period yield): +139.7%YTD Return: +11.97%Valuations: P/E: 17.30 P/B: 9.60 P/S: 3.22Trades? (did we add to): Bought 6 shares at $55.41, 4/16/15Portfolio Weight: 5.6%

FINANCIALS - ENCORE CAPITAL GROUP(ECPG)


Industry: Consumer LeasingMarket Cap: $1.08 BPurchase Price: $45.27Closing Price as of 4/15/15: $42.00HPY (holding period yield): -7.22%YTD Return: -5.5%Valuations: P/E: 11.1 P/B: 1.70 P/S: 1.10Trades? (did we add to): Bought 13 shares at $41.67, 4/16/15Portfolio Weight 5.71%

FINANCIALS - PROSPERITY BANCSHARES (PB)


Industry: Commercial BankMarket Cap: $3.70 BPurchase Price: $53.25Closing Price as of 4/15/15: $53.70HPY (holding period yield): +0.85%YTD Return: -3.02%Valuations: P/E: 12.1 P/B: 1.10 P/S: 4.54Trades? (did we add to): NonePortfolio Weight 3.86%

FINANCIALS - FIRSTMERIT CORP. (FMER)


Industry: Commercial/Money Center BankMarket Cap: $3.20 BPurchase Price: $19.01Closing Price as of 4/15/15: $19.50HPY (holding period yield): +2.58%YTD Return: +3.65%Valuations: P/E: 13.9 P/B: 1.20 P/S: 3.04Trades? (did we add to): Bought 47 shares at $19.52, 4/16/15Portfolio Weight 3.86%

HEALTHCARE- DHRUV


HEALTHCARE- CVS HEALTH CORP. (CVS)


Industry: Consumer Goods - Drug RetailMarket Cap: $115.93 BPurchase Price: $32.41Total Return: 226.3%Valuations: P/E: 25.5 P/B: 3.10 P/S: 0.90Trades? (did we add to): Sold 49 shares at $103.92, 4/6/15Portfolio Weight 0%

HEALTHCARE- STRYKER (SYK)


Industry: Medical Devices & ImplantsMarket Cap: $35.18 BPurchase Price: $63.97Closing Price as of 4/15/15: $92.29HPY (holding period yield): 44.27%YTD Return: -2.19%Valuations: P/E: 68.5 P/B: 4.10 P/S: 3.66Trades? (did we add to): Sold 16 shares at $93.03, 4/16/15Portfolio Weight 8.28%

ENERGY SECTOR


ENERGY - PATTERSON


Industry: Oil & Gas Drilling & Exploration

Market Cap: $2.95B

Purchase Price: $23.4283

Closing Price as of 4/15/15:

HPY (holding period yield): -8.57%

YTD Return: +29.009%

Valuations: P/E: 19.35 P/B: 1.06 P/S: 0.99

Trades? No Trades

Portfolio Weight: 8.94%

ENERGY - HELIX


Industry: Oil & Gas Equipment Services

Market Cap: $1.74B

Purchase Price: $22.3399

Closing Price as of 4/15/15:


YTD Return: -24.1459%


Trades? Bought 62 Shares At $16.4077 (4/13/2015)


CONSUMER STAPLES SECTOR


CONSUMER STAPLES - CALM Industry: Food - Major DiversifiedMarket Cap: $1.90BPurchase Price: $36.4099Closing Price as of 4/15/15: HPY (holding period yield): +2.34%YTD Return: +1.5265%Valuations: P/E: 12.95 P/B: 2.81 P/S: 1.23Trades? Bought 42 Shares At $39.2554 (4/13/2015)Portfolio Weight: 10.99%


CONSUMER DISCRETIONARY SECTOR


CONSUMER DISCRETIONARY - GIIIIndustry: Textile - Apparel ClothingMarket Cap: $2.66BPurchase Price: $24.00Closing Price as of 4/15/15: HPY (holding period yield): 383.86%YTD Return: +17.48%Valuations: P/E: 8.93 P/B: 1.04 P/S: 1.57Trades? Sold 9 Shares At $117.5861 (4/13/2015)Portfolio Weight: 7.31%


INDUSTRIALS SECTOR - MARI


INDUSTRIALS – CHICAGO BRIDGE & IRON (CBI)

Industry: General Contractors

Market Cap: $5.39 billion

Purchase Price: $48.95 (4/7/2015)

Closing Price as of 4/15/15: $51.79

HPY (holding period yield): +5.80%

YTD Return: +8.33%


Trades? Bought 23 shares @ $50.51



INDUSTRIALS – ENERSYS (ENS)

Industry: Industrial Electrical Equipment

Market Cap: $2.93 Billion

Purchase Price: $26.14 (11/21/2011)



YTD Return: +6.36%


Trades? No Trades



BASIC MATERIALS SECTOR - MARI


BASIC MATERIALS– MOSAIC (MOS)

Industry: Agricultural Chemicals


Purchase Price: $34.41 (11/19/2008)



YTD Return: -0.16%


Trades? No Trades



TECHNOLOGY SECTOR - MARI


TECHNOLOGY – BLACKBAUD (BLKB)

Industry: Business Software & Services


Purchase Price: $46.09 (2/26/2015)



YTD Return: +7.14%

Valuations: P/E: 79.37 P/B: 12 P/S: 4.04

Trades? No Trades



TECHNOLOGY – AVG TECHNOLOGIES (AVG)

Industry: Application Software


Purchase Price: $21.80 (4/9/2015)



YTD Return: +1.26%


Trades? Bought 15 shares @ $21.70



TECHNOLOGY – DOLBY (DLB)

Industry: Diversified Electronics


Purchase Price: $32.45 (12/12/2011)



YTD Return: -5.11%


Trades? No Trades



YTD OVERALL PERFORMANCE - MARI

Our portfolio (green): +5.83%VTWV (blue): +4.73%

ANNUAL TOTAL RETURNS - MARI

QUESTIONS?

KARA HERBERT, DHRUV RAJPUT,JIMMY SHIN, MARI DJELJAJ


Documents

P ORTFOLIO M ANAGEMENT Spring 2015 MSU Student Investment Association