university of alaska fairbanks student investment fund
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University of Alaska Fairbanks Student Investment Fund. Friday, March 25 School of Management Business Advisory Council Presented By: Joey Shinn, Michele Stringham , Sean Breiner , Robert Hannum , Craig Wisen. Experiential Learning. Public speaking intensive course Peer evaluation - PowerPoint PPT PresentationTRANSCRIPT
University of Alaska FairbanksStudent Investment Fund
Friday, March 25School of Management Business Advisory Council
Presented By:Joey Shinn, Michele Stringham, Sean Breiner, Robert Hannum, Craig Wisen
Experiential Learning
• Public speaking intensive course• Peer evaluation• Analytic and quantitative skills• Applied learning• Undergraduate research• Internships
Experiential Learning in SIF
The Student Investment Fund shall manage University of Alaska endowed funds in a professional manner in order to maximize risk-adjusted returns and provide experiential learning for UAF students
SIF Mission Statement
• Outperform S&P 500 on a risk-adjusted basis
• Monitor risk exposure
• Long positions only
• Fully Invested
• Presentation driven: screening and valuation
Objectives & Guidelines
Well diversified portfolio: Approx. 40 positions Current value approximately: $627,000
Market Cap Avg.: $35.3 billion, Median: $24.1 billion Market Cap Avg. of S&P 500: $22.8 billion, Median: $11.2 billion
Portfolio 3-year Beta: 0.88
Portfolio 3-year Annualized Alpha: 2.99%
Portfolio Statistics
Performance through 01/31/10
UAF Student
Investment Fund
Large Stocks
S&P 500
Small Stocks
Russell 2000
YTD Return ** 3.00% 2.37% -0.26%
1 Year 26.83% 15.06% 23.89%
2 Year 26.68% 20.63% 24.87%
3 Year -0.31% -2.85% 0.66%
4 Year 5.05% -0.83% 0.10%
5 Year 6.22% 2.29% 3.52%
10 Year 5.45% 1.41% 5.84%
Since Inception (Jan 92) 9.72% 7.80% *
* Russell 2000 index data is not available
** Year-to-date (YTD) returns are not annualized by convention
SIF Best Performers
Company Name TickerReturn Since
Purchase Average Daily Return Sector
Chipotle Mexican Grill CMG 219.5% 0.49% Consumer Discretionary
Express Scripts ESRX 211.3% 0.15% Health Care
Freeport McMoRan FCX 158.2% 0.23% Basic MaterialsWatson Pharmaceuticals WPI 96.2% 0.09% Health Care
Diamond Foods DMND 80.0% 0.12% Consumer Staples
SIF Worst Performers
Company Name TickerReturn Since
Purchase Average Daily Return Sector
Visa V -6.3% -0.06% Financials
Teva Pharmaceutical TEVA -3.4% -0.05% Health Care
Hospira HSP -3.3% -0.05% Health Care
Boeing BA 1.9% 0.02% Industrials
Murphy Oil MUR 2.5% 0.02% Energy
REIT Endowment Proposal
Goals Expand experiential learning opportunities Provide need and merit-based scholarships Pioneer student managed REIT funds Prepare for careers in real estate Innovative way of improving life decisions involving real
estate, management of debt, and retirement planning Strategy
Focused class on managing a REIT fund Follow established guidelines from SIF Raise seed investment capital
Real Estate Investment Trust (REIT)
Company that owns income producing properties Majority of assets and income are tied to real estate 90% of taxable income to shareholders in the form
of dividends Most remit 100% taxable income to shareholders
and therefore pay very little corporate tax Attractive dividend yields Less historical price volatility than stocks
REIT Benefits
Diversification 38% average correlation with the S&P 500 since 1992
Dividends Stable and consistent income stream Avg. yield 1986-2008: 7.4%
Liquidity Traded primarily on NYSE
Performance Refer to one-page handout
Transparency Registered and regulated by the SEC
REIT Performance
98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 09 10 10 $50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
REIT Growth of 100,000 S&P 500 Growth of 100,000
Thank you!