General Body Meeting 09.01.11. Mutual Investment Club of Cornell Agenda Introduction to MICC How...

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General Body Meeting 09.01.11

Mutual Investment Club of Cornell

Agenda

Introduction to MICC How to Get Involved Future Events Macro Update Portfolio Update

MICC Organization

Introduction to MICC

$50,000 Mutual Fund Dates back to 1998 Created through merger in Spring 2010

between two largest investment clubs at the time

Focus on Membership Education

General Body Meetings

Every Thursday 5:15PM – 7:15PM (Malott 251) 5:15PM – 6:15PM: Education Series 6:15PM – 7:15PM: General Body

Meeting Club announcements News updates Investment pitches and decisions

Executive Board Introduction President – John Yoshida Vice President – Miles Moen Portfolio Manager – Terence Hu VP of Public Relations – David Kim Senior Analysts

Sector Groups

Consumer – Andrew Schrichte Energy – Mihir Patel Financials – John Troncoso Healthcare – Eric Hoffman Industrials – Peter Cui Macro – Zach Peskin Media & Telecom – Dan Han Quant – Ali Yazdi Real Estate – Derek Creadore Technology – Aleks Zvorinji

How to Get Involved?

Opportunities for Members

Junior Analyst Program Newsletter Team Education Series MICC Events

Junior Analyst Program

Description Work closely with senior analysts in

covering a sector Pitches to enhance our portfolio Pay close attention to news within your

sector

Apply online: cornell-micc.com/jobs/ Notifications will be made early next

Newsletter Team

Description Write about a topic relevant to financial

markets or investing that you’re interested in

Be published in a newsletter that is distributed throughout campus (or even internationally!)

Write blog posts for our website

Talk to David Kim (sk852)

Education Series

Primary vehicle of learning basic concepts of investing and financial analysis

Selected Topics What is a stock? Presentation skills Introduction to modeling

Future Events

Cornell Undergraduate Stock Competition

NYSSA Investment Research Challenge Various Recruiting Events

NYC Trip Social Event: Poker?

1st Annual CUSC

Intercollegiate stock competition Competition dates: 9/20 – 9/21 First Prize: $3,000. Second Prize: $1,500

Cornell internal competition 9/10 Presentation Send email to

StockPitchCU@gmail.com by 9/2 Include name, major and year

CFA Institute Investment Research Challenge

International research competition Written report + Presentation

Team-based First round: Mid-late January Workshops throughout the Fall

Semester

Contact John Yoshida (njy3) if interested

Macro Update

Zach Peskin

Global Macro Update

Fed plans to keep interest rates low until 2013

Growth stalls in the U.S. Debt Ceiling debate/downgrade/super-

committee Fiscal stalemate Europe debt/growth crisis Austerity in Europe Consumer confidence at lowest levels

since Carter administration

Global Macro Update

Global fixed income rally Yield on 10yr US Treasury notes dropped

below 2% Negative real rates

Sell-off in global equity markets Gold rally (bubble?) Continued weakness in housing and

financial industry Sharp pullback in Oil (WTI/BRENT

divergence) Dramatic increases in volatility

Portfolio Review

Terence Hu

Post Summer Portfolio Review

Comparison of past three month returns • MICC return: -5.37%• Dow Jones return: -8.02%• S&P 500 return: -9.83%

MICC’s performance over the summer was affected by the macro economic environment

CYB (Chinese Yuan ETF) Investment

Thesis Diversification benefits Chinese Yuan definitely undervalued;

momentum of appreciation Political pressure to appreciate Yuan

due to instability caused by inflation Stable store of value; no downside risk Chance of one-off Yuan appreciation

CYB Summer Performance

Return: 0.3%

Reasons to sell CYB

Although original thesis holds true, Chinese government likely to maintain slow and steady appreciation

Poor tracking performance High opportunity cost

VXX (VIX ETF) Investment Thesis

Convenient hedge against volatility Markets not entirely stable; several

risks on horizon: Euro crisis Oil; middle east unrest Inflation in emerging markets US credit worries

VIX at lowest point since 0726

VXX Summer Performance

Return: 68.2%

Reasons to sell VXX

Markets have stabilized Sell when up to realize profits Perhaps invest in VXX during a period

of low volatility in the future

Thanks for coming by!

Junior Analyst Applications Newsletter Team

Next Week: Portfolio Review

General Body Meeting 09.01.11. Mutual Investment Club of Cornell Agenda Introduction to MICC How...

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