Performance Report

Student Managed Fund MBA class of 2005

March 3, 2005

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MBA Fund Managers

Christophe Pane

Luis Prandini

Stephen Petretto

Igor Lemagic

Rajiv Iyer

Jie Wan

Ashley Martella

Yun Cai

Amit Kumar

Sampita Ray

Gabriel Joanes

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Performance Highlights (Sept 24,2004 thru February 11,2005)

SMF PORTFOLIO

S & P 500

Portfolio Value (9/24/04) $410,918.25 1,110.11

Portfolio Value (2/11/05)$958,082.81(*

)1,205.30

Holding PeriodReturn (9/24/04 thru 2/11/05)

11.48% 8.57%

Annualized Return (%) 29.93% 22.36%

Beta 0.89 1

Annualized Standard Deviation

10.04% 11.11%

Sharpe Ratio** 2.57 1.64

Treynor Index** 28.95 18.18

Alpha 4.67%

*An additional $500,000 was added to the portfolio as of Jan,19 2005.

**Based on risk-free rate of

4.2%.

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Agenda Investment Methodology

Portfolio Performance & Attribution Analysis

Economic Outlook and Allocation

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Blend Strategy Combination of value and growth

Multi-Cap Fund

Investment Strategy and Style

Mid Caps

5 stocks

Small Caps1 stock

Large Caps

23 stocks

Primarily investments in large-cap stocks

Number of holdings as of 02/25/05: 29

Market Capitalization

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Investment Philosophy Fundamental analysis

Historical performance Valuation models Business models Future Prospects Economic outlook for the industry

Long-term (3-5 year) investment horizon

Benchmark: S&P500 Index Selecting stocks with potential Close monitoring of the portfolio

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Investment Approach

Sector Allocation

Valuation Models

•PEG and P/E Models•Dividend Discount Model •Free Cash Flow Model

Stock Selection

Fundamental Analysis

•Business Model Analysis•Ratio Analysis•Future Prospects

Top Down Approach

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Stock Selection CriteriaWe look for:

Solid financials

Strong management

Earnings growth

Attractive valuation relative to peers

Higher return/risk relative to industry

“If the choice is between a questionable business at a comfortable price or a comfortable business at a questionable price, we much prefer the latter.”

Buy & Sell Discipline

Buy CriteriaSteady growth ratesIntrinsic value > market value Above average expected returns

Sell Review CriteriaStock reaches our target return Predetermined stop loss pricesRisk/reward profile deterioratesActual earnings figures lower than estimates

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Management Style

Active Management Report presentation and voting

Performance Monitoring Stop Loss Measures (15%) Appreciation Reevaluation (20%) Continuous Monitoring & Dynamic Response

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Sector Allocation (as of 02/11/2005)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

S&P 500 Current SMF allocation

Top 5 sectors:

FinancialsIndustrials

Consumer Disc.IT

Health Care

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Detailed Sector Allocation (as of 02/11/2005)

COMPANY NAMETRADE DATE

# SHARES COST ($)

CURRENTPRICE ($)

CURRENT VALUE ($)

% RETURN

% OF PORTFOLIO

HEALTHCARE

Aetna Inc. 27-Oct-04 200 $89.41 $133.50 $26,700.00 *49.31% 2.79%

ENERGY

Valero Energy 27-Oct-04 500 $44.00 $61.43 $30,715.00 39.61% 3.21%

FINANCIALS

Citigroup 22-Oct-04 500 $42.80 $49.40 $24,700.00 15.42% 2.58%

Commerce Bancorp 22-Dec-04 600 $60.03 $57.74 $34,644.00 -3.81% 3.62%

Hartford F. Services 12-Nov-04 350 $62.00 $73.76 $25,816.00 18.97% 2.69%

ING Group (ADR) 9-Nov-04 300 $26.71 $29.31 $8,793.00 9.73% 0.92%

CONSUMER STAPLES

Coca-Cola 22-Sep-04 300 $40.46 $42.76 $12,828.00 5.68% 1.34%

Walgreen's 22-Nov-04 400 $37.93 $42.81 $17,124.00 12.87% 1.79%

* Best Performeruntil 02/11

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Detailed Sector Allocation (as of 02/11/2005)

CONSUMER DISCRETIONARY

Comcast Corp. 15-Oct-04 375 $28.77 $31.53 $11,823.75 9.59% 1.23%

Starwood Hotels 28-Dec-04 350 $59.01 $59.00 $20,650.00 -0.02% 2.16%

Lions Gate Entertain. 11-Feb-05 3000 $10.42 $10.44 $31,320.00 0.19% 3.27%

Viacom B 6-Oct-04 500 $35.21 $37.44 $18,720.00 6.33% 1.95%

INDUSTRIALS

Fedex Corp. 15-Nov-04 260 $95.12 $98.01 $25,482.60 3.04% 2.66%

Masco Corp. 22-Dec-04 500 $36.46 $37.19 $18,595.00 2.00% 1.94%

3M Corp. 15-Nov-04 200 $82.64 $84.04 $16,808.00 1.69% 1.75%

INFORMATION TECHNOLOGY

Cisco Systems 3-Dec-04 1000 $19.50 $17.70 $17,700.00 -9.23% 1.85%

Flextronics 28-Dec-04 1000 $13.80 $14.15 $14,150.00 2.54% 1.48%

SAP AG (ADR) 8-Feb-05 750 $39.24 $39.86 $29,895.00 1.58% 3.12%

UTILITIES

Dominion Resources 23-Nov-04 150 $66.71 $70.63 $10,594.50 5.88% 1.11%

INDEX FUND and CASH 

Vanguard S&P500 Index 27-Jan-05 686 $103.26 $110.46 $75,775.56 6.97% 7.91%

CASH         $485,248.40   50.65%

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Performance Highlights (Sept 24,2004 thru February 11,2005)

SMF PORTFOLIO

S & P 500

Portfolio Value (9/24/04) $410,918.25 1,110.11

Portfolio Value (2/11/05) $958,082.81(*) 1,205.30

Holding PeriodReturn (9/24/04 thru 2/11/05)

11.48% 8.57%

Annualized Return (%) 29.93% 22.36%

Beta 0.89 1

Annualized Standard Deviation

10.04% 11.11%

Sharpe Ratio** 2.57 1.64

Treynor Index** 28.95 18.18

Alpha 4.67%

*An additional $500,000 was added to the portfolio as of Jan,19 2005.

**Based on risk-free rate of

4.2%.

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Portfolio Performance Attribution

290 339

-2 -47-200

0

200

400

PortfolioExcessReturn

StockSelectionAttribution

SectorAllocationAttribution

CashPosition

Attribution

S1

Basis points

Excess Return = Stock Selection + Sector Allocation + Cash Position

Period: September 24, 2004 to February 11, 2005

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Current State of the SMF Portfolio (since Feb. 11)

Positions Added:

Apache Corporation, PetroChina (Energy)

Ameritrade, E*Trade, MBNA (Financials)

Invitrogen (Health Care)

Sysco Foods (Consumer Staples)

Dunn & Bradstreet, Tyco International (Industrials)

Florida Power & Light Group, Inc. (Utilities)

Positions Increased:

Comcast and Starwood Hotels (Consumer Discretionary)

Hartford Financial Services (Financials)

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Portfolio Summary Market Value at Feb. 25, 2005: $967,397

Current number of stocks: 29

Total amount yet to be allocated: $160,653

Top 10 holdings:

Apache Corporation – 4.43%

Dun & Bradstreet – 4.45%

Tyco International – 4.24%

Hartford Financial Services – 4.12%

E*Trade - 4.07%

FPL Group - 4.06%

MBNA Corporation - 4.04%

Invitrogen Corp. – 3.97%

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Portfolio Summary

Top 10 holdings:

Commerce Bancorp – 3.72%

Sysco Foods – 3.63%

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Economic OutlookExpected GDP growth of over 3% for 2005, albeit lower than 2004.

Core Inflation expected to rise; prices rose 2.3% from a year earlier.

Long-term interest rates are still low; flattening yield curve.

Federal Reserve is expected to continue increasing the federal-funds rate at “measured” pace.

Mergers-and-acquisitions market is picking up steam – favorable development for equities.

Situation in Iraq puts pressure on oil price and maintain high level of uncertainty.

Energy,industrials,materials, utilities expected to lead market.

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Industry Outlook Sector Weight OutlookConsumer Discretionary

Overweight Favorable

Consumer Staples

Underweight Favorable

Energy Neutral Favorable

Financials Overweight Favorable

Healthcare Underweight Favorable

Industrials Overweight Favorable

IT Underweight Unfavorable

Materials Underweight Favorable

Telecom Underweight Unfavorable

Utilities Underweight Favorable

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Fulfilled Portfolio Objectives

Performance surpassed S&P 500

Lower Risk Level

Invested primarily in Large Cap U.S. Equities

Chose only fundamentally strong companies

WRAP UP

Top Performers

Aetna (AET)-49.31%

Valero (VLO)-39.61%

Hartford (HIG)-18.97%

Worst Performers

Cisco (CSCO)- (9.23%)

Pfizer (PFE)- (16.83%)

CACI (CAI)- (16.98%)

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Takeaways

Valuation Highly Dependent on Analyst’s Assumptions

Stop Losses can sometimes work against you

Have patience

Stick to your strategy and convictions

Enjoy the extraordinary learning opportunity

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Thank you.

University of Connecticut Foundation Inc.

Investment Advisory Board

Dr. Chinmoy Ghosh

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Q & A ?