Investment Club Fall 2017

President – Sarah Graney (sgraney@nd.edu)Vice President – Devon Krapcho (dkrapcho@nd.edu)Board Member – Alyssa Loffredo (aloffred@nd.edu)Board Member – Rafa Campos (rphilipp@nd.edu)Board Member – Niko Martinovic (nmarti10@nd.edu)Treasurer – Christian Brunner-Lopez (cbrunner@nd.edu)Secretary – Alex Kruszewski (akrusze1@nd.edu)Mentorship Director – Steve Nash (snash2@nd.edu)Mentorship Director – Carl Schiro (cschiro@nd.edu)Website Coordinator – Lauren Weetman (lweetman@nd.edu)Faculty Advisor – John Stiver (jstiver@nd.edu)

CLUB OVERVIEW

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Leadership Team

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Sarah GraneyPresidentClass: 2018Dorm: CavanaughInternship: Goldman Sachs IB

Devon KrapchoVice PresidentClass: 2018Dorm: DuncanInternship: DBO Partners IB

Alyssa LoffredoBoard MemberClass: 2018Dorm: LewisInternship: Credit Suisse IB

Rafa CamposBoard MemberClass: 2019Dorm: DunneInternship: BAML IB

Niko MartinovicBoard MemberClass: 2019Dorm: ZahmInternship: Hedge Funds in NYC

Christian Brunner-LopezTreasurerClass: 2019Dorm: DillonInternship: Goldman Sachs IB

Alex KruszewskiSecretaryClass: 2019Dorm: DillonInternship: UPMC Enterpises VC

Steve NashMentor DirectorClass: 2018Dorm: DillonInternship: Zais Group

Carl SchiroMentor DirectorClass: 2018Dorm: KnottInternship: Barclays S&T

Lauren WeetmanWebsite CoordinatorClass: 2020Dorm: CavanaughInternship: 20th Century Fox

Club Mission, Goals & Principles

The mission of the Notre Dame Investment Club is to enhance the educational experience of members by learning equity valuation techniques, portfolio management strategies and market research skills

Goals▸ The Notre Dame Investment Club (NDIC) aims to provide students with an opportunity to develop

independent equity research reports while simultaneously developing skills in teamwork, leadership and public speaking

▸ Additionally, the NDIC attempts to educate its members on opportunities within the financial sector and seeks to help students leverage experiences to attain careers within their chose field

▸ The NDIC strives to pool the collective resources of club members to generate attractive investment ideas in order to lead to outperformance of the portfolio over its benchmark (S&P 500)

The Three Principles1. Intellectual honesty2. Input-Orientation3. Team-Orientation

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Club Structure▸ Weekly Stock Pitch by member

▸ Voting team decides whether to make purchase ($25,000+ allocation to approved purchases)– Voting Team will consist of board members and a rotating group of active club participants

▸ Weekly Skill Workshops– Fundamental Analysis– Technical Analysis– Equity Screening– Discounted Cash Flow– Comparable Companies Analysis– 10-K, 10-Q, Earnings Call Analysis

▸ Option to Present Stock Update for Underclassmen (on existing investment in NDIC Portfolio)

▸ Leadership Team always available to meet with members regarding idea generation, progress of pitch, Excel model, careers, interviews, etc.

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Standard Meeting▸ 5:30 PM – 6:00 PM: Skill Workshop▸ 6:00 PM – 6: 10 PM: Market Update and Portfolio Review▸ 6:10 PM – 6:25 PM: Stock Pitch▸ 6:25 PM – 6:45 PM: Q&A and Discussion▸ 6:45 PM – 7:00 PM: Post-Pitch Voting Team Discussion Regarding Potential Investment

▸ Written reports along with valuation models are available 48 hours prior to the meeting

▸ Analysts are expected to provide a short power point presentation that summarizes the key aspects of his / her pitch

▸ Question and answer session occurs in which every aspect of the company as well as the analyst’s presentation are up for discussion

▸ All meetings occur on Thursday at 5:30 PM in the Mendoza College of Business

▸ Meetings follow a structure designed to promote maximum discussion (please talk, we want everyone to challenge the presenter regardless of experience level)

▸ Members that have shown consistent engagement will be asked to join the voting team, which will rotate weekly

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Standard Pitch

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Presentation Materials Written Report

Valuation Models

▸ Investment Thesis

▸ Strategic Positioning

▸ Growth Strategy

▸ Catalysts

▸ Key Risks

▸ Final Recommendation

▸ Investment Thesis

▸ Company Overview

▸ Industry Overview

▸ Discounted Cash Flow

▸ Comparable Companies

CLUB UPDATES

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Website

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▸ This year we will have a functional website!– Currently has sample pitches, contact information for club leadership and policies for giving stock pitches– Expect to see additional resources coming soon

▸ We will be using the website to keep members up to date so please check regularly if you are not able to attend meetings

▸ http://sites.nd.edu/invclub/

Competitions

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▸ The club will be sponsoring teams to participate in both virtual and travel competitions throughout the academic year

▸ All teams will be applications based and teams will be chosen based on the following criteria:– Resume– Interview– Attendance and Participation in Club Meetings

Past Competitions▸ Cornell Undergraduate Stock Pitch Challenge ▸ U of Michigan Stock Pitch Competition▸ USC Investment Competition▸ OSU Undergraduate Stock Pitch Competition▸ ETF Global Portfolio Challenge (Virtual)▸ CME Group Trading Challenge (Virtual)▸ CQA Investment Challenge (Virtual)

Mentorship

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▸ This club is a great way to find mentors that can help you with career advice, application processes or locating resources on investing

– But it is up to you to reach out!

▸ Steve Nash (snash2@nd.edu) and Carl Schiro (cschiro@nd.edu) are Mentor Directors for the club and will serve as the first point of contact if you have any questions

▸ In addition, when giving a pitch you will be assigned an upperclassmen that you can reach out to with questions as you put together your model and presentation materials

– You will be required to check in with your upperclassmen periodically to ensure that you are on track to give your pitch

The Investment Club Advantage

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Professional Opportunities Across Multiple Sectors

Investment Banking

Sales & Trading Hedge Funds Asset

ManagementCorporate Finance

• Investment Club provides a fantastic way to make yourself stand out in the crowd in a recruitment environment

• The Club provides an opportunity for students to gain hands on experience and demonstrate their passion for finance

NDIC PORTFOLIO

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Portfolio Structure▸ NDIC operates a long only fund that invests in U.S equities only▸ We do not take positions in fixed income or derivative instruments▸ Our investments must comply with the investment standards established by the University

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Description Sector Market Value AllocationYandex Technology $50,773 7%Quest Diagnostics Healthcare 41,374 6%Nike Consumer Retail 36,611 5%Global Payments Financial Services 35,861 5%Gilead Healthcare 33,480 5%Apple Technology 32,721 5%The Gap Consumer Retail 32,171 5%Infinera Healthcare 31,554 4%Williams Sonoma Consumer Retail 27,858 4%Cabot Oil & Gas Natural Resources 26,114 4%Verizon Technology 21,780 3%Tegna Consumer Retail 20,763 3%Valero Energy Natural Resources 18,277 3%Trans World Entertainment Consumer Retail 8,050 1%Adeptus Healthcare 3,136 0%Cars.com Consumer Retail 16 0%S&P Index 164,102 23%TIPS Index 74,676 11%Cash 44,261 6%

Total 703,576 100%

NDIC -85.0 bpS&P 500 -5.0 bp

MTD Return

Goal - Drive Returns▸ We believe that the best investments are hard to find, so…quality pitches driven by quality stocks at quality

prices…they are naturally hard to find!▸ Accuracy and quality as priority▸ If your valuation says hold, then recommend that!

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NDIC 11.4%S&P 500 10.3%

YTD Return

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

YTD Performance

NDIC Portfolio

S&P 500

Finding Investments & Following the MarketsScreening Tools▸ CapIQ and Bloomberg Screens

– High cash/ low debt– Low EV/EBITDA vs. peers– Themes (i.e. industries)– Create your own! Be creative to create a competitive advantage!

▸ Magicformulainvesting.com (has a solid screen by Greenblatt)

Following the Financial Markets▸ Bloomberg▸ Wall Street Journal▸ Financial Times▸ New York Times▸ Twitter (real-time news and market updates)▸ Top Financial Blogs (e.g. The Big Picture, Zero Hedge, Abnormal Returns)▸ Email Newsletters (e.g. Bloomberg 5 Things to Start Your Day, Matt Levine’s Money Stuff, The

Daily Shot, Morning Brew, Seeking Alpha Wall Street Breakfast)

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Undergraduate Investment Funds Comparison

$31,219

$130,000

$485,000

$20,000

$740,000

$650,000

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Help defend our position as one of the leading college investment clubs in the world.

FAQs

▸ No

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Do I have to be a finance (or business) major?

Can I be a member and not make investment pitches?

If I pitch and we lose money, what happens to me?

Dues?

Can Freshman pitch?

Any other questions?

▸ Nothing

▸ No

▸ Yes

▸ Yes