Portfolio_Graduate_class_report_Spring_2011.docx



Graduate StudentInvestment FundEnd-of-Semester ReportHistory The Student Investment Management Class, Finance 437 (honors) was created by Professor William Jennings, our current Dean, and began managing a $500,000 equity portfolio for The University Corporation in 1993. During this time period more than three hundred forty students have participated in investment decisions which have seen the portfolio grow in value to approximately $2,000,000. Building on the success of this class, starting in the Fall of 2007, we decided to carve out $500,000 of the total portfolio, and open an experimental class for the graduate (M.B.A.) students. BUS 695 Student Investment Management follows in the spirit of the Finance 437 BH class, opened to a small number of select students with each student expected to research and formally present their investment ideas to the class. The new class was a clear winner and we offered it again in the Spring of 2008. As a part of the classroom experience, executives from the investment and business community come to share their knowledge and insights with the class. We believe that this unique combination of practical and theoretical education helps prepare our graduates for future careers in business.The class would like to thank Mr. Doug Christopher, portfolio manager with Crowell, Weedon & Co., for sharing his knowledge and experiences with us this semester. Doug was not just a guest speaker but he also shared with us his research and portfolio management methods, provided continuous technical support and helped us with a lot of portfolio statistics.We also want to acknowledge support from:The University CorporationDean William Jennings Graduate Programs, College of Business and EconomicsAbout the CSUN MBA ProgramThe graduate portion of the CSUN Student Portfolio is managed by graduate students with a Finance emphasis in CSUN’s award winning MBA program.California State University? Northridge?s College of Business and Economics Graduate Programs are created to satisfy the wants and needs of the working professional adult. These programs are constantly being modified and updated to adapt to the ever-changing domestic and international business environment. Students in our MBA program are mid-career professionals seeking to advance their careers while working full-time. Designed to be accessible to the fully employed student, the interdisciplinary program focuses on developing leaders with an in–depth understanding of general business strategy? collaborative teamwork? leadership? and the skills and ethical framework to practice principled business decision–making. The program also emphasizes analytical thinking, communication, a global perspective and practices. A spirit of collegiality among the students, faculty, and community is fostered through social and professional activities.The graduate program also includes a Graduate Certificate in Business Administration, a Master’s of Science in Taxation, and a Master’s of Science in Accountancy. There are plans to introduce additional programs during the coming years.In addition to being an AACSB accredited program, the College of Business and Economics was listed in the 2009 Princeton Review as one of the “best business schools”.There are many opportunities to support the MBA program, participate as a guest speaker (or student), and sponsor a graduate field studies team in a consulting project for your business. Please contact mba@csun.edu for additional information.Portfolio ManagersGeorge AbagiErin CohenAna CoutinhoCharles Farish IvSafina GrewalStephen GyllenhammerAugustus HernandezDavid HickokKristie HoangJacek HrabiaErich MeschkatMichael YuTing Ya YangProf. Vicentiu Covrig, faculty advisorTransactions Sales:Hewlett-PackardHPQ500Goldman SachsGS125Sport ChaletSPCHA100AmgenAMGN100iShares S&P Latin AmericaILF400TargetTGT510Purchases:DisneyDIS400Union PacificUNP 150YUM! BrandsYUM300iShares BiotechIBB150Portfolio Holdings 1/12/20115/12/2011Company TickerSharesMarket ValuesSharesValuesAMGEN INC AMGN 100$5,619 00ANNALYNLY850$15,121850$15,147APPLE INC AAPL 110$37,580110$38,123BLDRS EMERGING MARKETS 50 ADR INDEX FUNDADRE 500$23,95000CATERPILLAR INC DEL CAT 800$75,160800$86,904COGNIZANT TECHNOLOGY SOLUTIO CTSH 200$15,102200$15,602COLGATE PALMOLIVE CO CL 200$15,642200$17,442COMPANHIA BRASILEIRA DE DIST CBD 600 $25,0381100$26,886COSTCO WHSL CORP NEW COST 500$35,535500$41,660DISNEY WALT CO DIS 00400$16,632EMCEMC625$14,837625$17,331GOLDMAN SACHS GROUP INC GS 125$21,17000HEWLETT PACKARD CO HPQ 500$22,71500ISHARES NASDAQ BIOTECHIBB 00150$16,425ISHARES S&P LATIN AMERICAILF400$21,30400LINCARE HLDGS INC LNCR 1500$15,966600$18,672PRAXAIR INC PX 300$27,990300$31,245QUALITY SYS INC QSII 300$22,117.5300$26,949ROSS STORES INC ROST 900$77,388900$24,372SPORT CHALET INC SPCHA 100$27700TARGET CORP TGT 510$28,146.9003MMMM300$26,322300$28,995TRANSOCEANRIG200$15,236200$13,496Union PacificUNP00150$15,346VERIZONVZ400$14,144400$14,972WHITE RIVER CAPITAL INC RVR 3900$66,5343900$5,655YUM!YUM00300$16,4191/12/20115/12/2011Total Equity Value$503,547$511,792Cash$ 8,455$36,114TOTAL PORTFOLIO VALUE$512,002$547,906Performance (combined portfolio since inception)Performance (Graduate portfolio since inception) AnalyticsThe StocksAnnaly (NLY) is a real estate investment trust, engaged in the ownership, management, and financing of a portfolio of investment securities. The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans. Annaly Capital also invests in Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association debentures. The company has elected to be taxed as a real estate investment trust (REIT). Annaly Capital Management was incorporated in 1996 and is based in New York City.Apple (AAPL) was founded in Cupertino, California, on April 1, 1976. Apple Inc., formerly Apple Computer, Inc., designs, manufactures and markets personal computers and related software, services, peripherals and networking solutions. It also designs, develops and markets portable digital electronics including telephones, music players, personal organizers, and tablet devices. It also markets many accessories, including the online sale of third-party audio, video, and software products. Its revenues have skyrocketed from $19.315 billion in 2006 to $42.905 billion, leaving net profits of $1.989 billion in 2006 and $8.235 billion in 2009. Revenues reflect increased sales in every one of its product categories. The momentum generated by its constant stream of innovative products (iPods, iPhones, iTV, iPad, etc.) has been at the foundation of its success.BLDRS Emerging Markets 50 ADR Index Fund (ADRE) The investment seeks to provide investment results that correspond generally, before fees and expenses, to the price and yield performance of the Bank of New York Emerging Markets 50 ADR index. The fund will typically invest substantially all of its assets in the securities that make up the index. It is non-diversified.Caterpillar (CAT) Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Machinery business engages in the design, manufacture, marketing, and sale of construction, mining, and forestry machinery, such as track and wheel tractors, track and wheel loaders, pipe layers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar was founded in 1925 and is headquartered in Peoria, Illinois.Cognizant Technology Solutions Corporation (CTSH) Cognizant Technology Solutions Corporation provides information technology (IT) consulting and technology services, as well as outsourcing services in North America, Europe, and Asia. Its IT consulting and technology services include business and knowledge process consulting; IT strategy consulting; technology consulting; application design, development, integration, and re-engineering, such as complex custom systems development, data warehousing/business intelligence, customer relationship management (CRM) system implementation, and enterprise resource planning (ERP) system implementation; and software testing services. The company’s outsourcing services comprise application maintenance, including custom application, CRM, and ERP maintenance; IT infrastructure outsourcing; and business and knowledge process outsourcing. It offers its services to various markets, such as financial services, healthcare, manufacturing and logistics, retail and hospitality, and communications. Cognizant Technology Solutions Corporation was founded in 1998 and is headquartered in Teaneck, New Jersey.Colgate-Palmolive CO. (CL) Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry detergents, dishwashing liquids and detergents, household cleaners, and oil soaps, as well as fabric conditioners. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360°, Colgate, Colgate Plax, Palmolive, Softsoap, Irish Spring, Protex, Speed Stick, Lady Speed Stick, Caprice, Ajax, Fabuloso, Murphy’s, Suavitel, and Soupline brand names to wholesale and retail distributors. It also provides pet nutrition products for dogs and cats. The company was founded in 1806 and is headquartered in New York, New panhia Brasileira (CBD) was founded in 1948 and is headquartered in Sao Paulo, Brazil. With its subsidiaries the company operates retailers of wholesale food products, bazaar articles, clothing, home appliances and other products. Its outlets include: Pao de Acucar, CompreBem, Extra, Extra Eletro, Extra Perto, Extra Facil, , Sendas, Assai, and Ponto Frio e . In total, as of December 31, 2009, the company has 1,080 stores in Brazil.Costco (COST) was founded in 1976 and is based in Issaquah, Washington. The company operates membership-only warehouses that sell brand-name and private-label products in a wide range of merchandise categories at low prices. As of October 2009, the company operates 560 warehouses (407 in the United States, 77 in Canada, 21 in UK, 32 in Mexico and 23 in the Asia/Pacific region). The company also has a strategic alliance with Valdez Heli-Camps. EMC (EMC) develops, delivers, and supports information infrastructure and virtual infrastructure technologies and solutions. The company’s Information Storage segment offers networked information storage systems and software, which are deployed in storage area network (SAN), networked attached storage (NAS), unified storage combining NAS and SAN, content addressed storage, and direct attached storage environments. Its Content Management and Archiving segment provides software that optimizes business processes, as well as creates, manages, delivers, and archives information from documents and discussions, e-mail, Web pages, images, XML, reports, records, rich media, and application data. EMC Corporation’s VMware Virtual Infrastructure business offers virtual infrastructure solutions and services to address a range of IT problems that include cost and operational inefficiencies, business continuity, software lifecycle management, and desktop management. The company was founded in 1979 and is headquartered in Hopkinton, Massachusetts.iShares Nasdaq Biotech (IBB) seeks investment results that correspond generally to the price and yield performance of the Nasdaq Biotechnology index. The fund’s inception date is 2/5/2001.Lincare Holdings Inc. (LNCR) was founded in 1972 and is based in Clearwater, Florida. Together with its subsidiaries, LNCR provides oxygen and other respiratory therapy services to the “home health care” market in the United States. It provides home oxygen equipment, including oxygen concentrators, which are stationary units that provide a continuous flow of oxygen by filtering ordinary room air; and liquid oxygen systems, which are thermally insulated containers of liquid oxygen. The company also offers respiratory therapy services, such as nebulizers and associated respiratory medications that provide aerosol therapy for customers suffering from chronic obstructive pulmonary disease (COPD) and asthma; continuous positive airway pressure devices, which maintain open airways in customers suffering from obstructive sleep apnea by providing airflow at prescribed pressures during sleep; non-invasive ventilation that offers nocturnal ventilatory support for customers with neuromuscular disease and COPD; and ventilators, which support respiratory function in severe cases of respiratory failure. As of February 8, 2010, Lincare Holdings managed approximately 1,056 local centers in 48 states. Praxair, Inc. (PX) is an industrial gas supplier. Praxair’s primary products for its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). The company also designs, engineers, and builds equipment that produces industrial gases for internal use and external sale. The Company operates in five segments: North America, Europe, South America, Asia and surface technologies business, which operates through the Company’s wholly owned subsidiary, Praxair Surface Technologies, Inc. The surface technologies segment supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders. In July 1, 2009, the Company's subsidiary, Praxair Surface Technologies, Inc., acquired Sermatech International Holdings Corp.Quality Systems, Inc. (QSII) develops and markets healthcare information systems that automate certain aspects of medical and dental practices, networks of practices, such as physician hospital organizations (PHOs) and management service organizations (MSOs), as well as ambulatory care centers, community health centers, and medical and dental schools. The Company also provides revenue cycle management (RCM) services through its Practice Solutions division of NextGen. The Company consists of the QSI Division and a wholly owned subsidiary, NextGen Healthcare Information Systems, Inc. (NextGen Division). The QSI Division focuses on developing, marketing and supporting software suites sold to dental and certain niche medical practices.Ross Store, Inc. (ROST) was founded in 1957 and is headquartered in Pleasanton, California. Together with its subsidiaries, the company operates two chains of off-price retail apparel and home accessories stores in the United States. Its stores offer branded and designer apparel, accessories, footwear, and home fashions, as well as gift items, linens, and other home-related merchandise. As of January 30, 2010, it operated 1,005 stores, including 953 Ross Dress for Less (Ross) locations in 27 states and Guam, and 52 DISCOUNTS stores in 4 states.3M (MMM) operates as a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics; and Electro and Communications. The Industrial and Transportation segment offers tapes, coated and nonwoven abrasives, adhesives, specialty materials, filtration products, closures for hygiene products, and components and products that are used in the manufacture, repair, and maintenance of automobiles. The Consumer and Office segment provides office supply products, stationery products, construction and home improvement products, home care products, protective material products, and consumer health care products. The Display and Graphics segment offers optical film solutions for electronic displays; computer screen filters; reflective sheeting for transportation safety; commercial graphic systems; and projection systems, including mobile display technology and visual systems products. The company was founded in 1902 and is based in St. Paul, Minnesota.Transocean (RIG) provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and project management services. The company also explores, develops, and produces oil and gas properties located primarily in the United States offshore Louisiana and Texas, and in the United Kingdom sector of the North Sea. As of March 31, 2010, it owned and operated 140 mobile offshore drilling units comprising 46 high-specification floaters, 26 midwater floaters, 10 high-specification jackups, 55 standard jackups, and 3 other rigs. The company was founded in 1953 and is based in Vernier, Switzerland.Union Pacific Corporation (UNP), through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 32,094 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, and beverage products; automotive products; chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products; industrial products; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.Verizon (VZ) provides communication services. The company operates through two segments, Domestic Wireless and Wireline. The Domestic Wireless segment offers wireless voice and data services; and sells equipment in the United States. The Wireline segment provides voice, Internet access, broadband video and data, Internet protocol network, network access, long distance, and other services in the United States and internationally. The company serves consumer, business, and government customers, as well as carriers. As of December 31, 2010, its network covered a population of approximately 292 million and provided service to a customer base of approximately 94.1 million. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was founded in 1983 and is based in New York, New York.Walt Disney Company (DIS) was founded in 1923 and headquartered in Burbank, CA operates as a diversified entertainment company worldwide. Its media operations include broadcast television, television production and distribution, cable networks, domestic radio networks, publishing and digital operations. Disney’s media brands include ABC, ESPN, SOAPnet and various Disney-branded websites. The company also has a parks and resorts segment which operates the Walt Disney World Resort in Florida, Disneyland in California, Disney Vacation Club, Disney Cruise Line, and ESPN Zone. The company also licenses and manages Disneyland in Paris, Hong Kong, and Tokyo. The company also licenses its characters and images to manufacturers, retailers, show promoters and publishers. White River Capital Inc. (RVR) was founded in 2004 and is headquartered in Rancho Santa Fe, California. As a financial credit services holding company, through its subsidiaries, the company engages in specialized indirect auto finance businesses. The company, through Coastal Credit LLC, engages in acquiring and servicing the subprime auto receivables from franchised and independent automobile dealers that have entered into contracts with purchasers of used and new cars, and light trucks. The company, through Union Acceptance Company LLC, holds and oversees its portfolio of non-prime auto receivables. YUM! Brands, (YUM) together with its subsidiaries, operates as a quick service restaurant company in the United States and internationally. The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items. Its restaurants specialize in chicken, pizza, Mexican-style food, and quick-service seafood categories. It operates approximately 37,000 restaurants in 110 countries and territories under the KFC, Pizza Hut, Taco Bell, Long John Silver’s, and A&W All-American Food Restaurants brands. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was founded in 1997 and is headquartered in Louisville, Kentucky ................
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