Carroll Fund Fund Period 1... · New Transactions The Carroll Fund did not make any new purchases...

CARROLL FUND PERIOD 1 REPORT

EMILY MYERS, COLSON MYERS, BRADFORD HORNSBY, MARISA MEDINA, KOJAK WELLS, AND ALEX ESPOSITO

2

Table of Contents Letter to Carroll’s………………………………………………………………….……….. 3

Economic Outlook………………………………………………………………………….. 4

Performance Summary…………………………………………………………………….. 5

Portfolio Breakdown and Returns…………………………….…………………………... 6-7

Performance and Risk Metrics………………………………………………………….… 8

Return on Holdings…………………………………………………………………….…... 9

Alternatives…………………………………10 Healthcare………………………… 26-27

WisdomTree Floating Rate Treasury ETF 11 AMN Healthcare Services, Inc. 28

iShares Core U.S. Aggregate Bond ETF 12 ARK Genomic Revolution ETF 29

Communication Services…………………. 13 GlaxoSmithKline PLC 30

Verizon 14 iShares U.S. Medical Devices ETF 31

Consumer Discretionary…………………. 15-16 Johnson & Johnson 32

Amazon 17 Merck and Co., Inc. 33

Consumer Staples………………………… 18 Materials…………..………….……. 34

PepsiCo Inc. 19 Materials Select Sector SPDR ETF 35

Energy……………………………………... 20 Vulcan Materials Co. 36

Financials………………………………….. 21 Real Estate…………………………. 37

JP Morgan Chase & Co. 22 Utilities……………………………... 38

Industrials………………………………… 23 Technology…………………………. 39

Industrial Select Sector SPDR Fund ETF 24 Global X FinTech ETF 40

Raytheon Company 25 Microsoft 41

Fund Managers……………………………………………………………………………..42-44

Works Cited……………………………………………………………………………...…45-47

3

Letter to Carroll’s

Dear Mr. and Mrs. Carroll,

The Carroll Torch Fund managers would like to thank you for the incredible opportunity to gain

experience in the world of wealth management. As a result of our time on the Carroll Fund, we

have each gained a tremendous amount of knowledge and skills that cannot be taught in a

classroom. This experience has made each of us more confident students, investors, and global

citizens. We will undoubtedly use the skills we have learned in our careers and daily lives.

In Period 1 (10/1/2019 – 12/31/2019), the team made several key changes to the portfolio. The

fund liquidated our position in Goldman Sachs (GS) and the Invesco S&P 500 Equal Weight

Consumer Staples ETF (RHS). Overall, the fund did not feel optimistic about the outlook of

these holdings and decided to sell. The fund established a position in several investments

throughout period one. These include iShares Dow Jones US Medical Device ETF (IHI),

Johnson and Johnson (JNJ), PepsiCo (PEP), and Microsoft (MSFT). The fund continues to look

for opportunities to invest in reliable fixed income alternatives to achieve the 60/40 goal ratio for

equity to non-equity holdings.

Over the past period, the Carroll Fund’s return was 5.06%, and its spread from our benchmark

was -1.04%. The return of the Haslam, Laporte, and McClain funds were 5.39%, 3.42%, 6.50%,

respectively, while the spreads of those same respective funds were -1.73%, -3.32%, and -0.96%.

Once again, The Carroll Fund would like to extend an enormous thank you for allowing us to

participate in such a unique and rewarding experience. We have learned many valuable lessons

that we will carry with us for a lifetime. Thank you again for all of your generosity and support.

Sincerely,

Alex Espisito, Bradford Hornsby, Marisa Medina, Emily Myers, Colson Myers, and Kojak Wells

4

Economic Outlook

Summary

Despite an overall healthy economy throughout Period 1, the fund held a cautious outlook on the

economy going forward. This outlook was due to economic indicators and events in both the

domestic and global economies.

Domestic Economy

The Carroll Fund closely followed economic data throughout Period 1 to gain an understanding

about the health of the economy. Unemployment and housing starts remained at a healthy level

throughout the period. However, the fund continued to maintain a pessimistic outlook on the

future of the economy due to manufacturing slowdowns, political uncertainty, and outside

pressures on the domestic economy. The fund also anticipates a turbulent and potentially volatile

presidential election season in the coming year. New policies could change regulation in many of

the sectors we follow especially healthcare and technology.

Global Economy

Throughout Period 1, the fund kept a close eye on several geopolitical events that had potential

to move the markets. The most notable of these events being the ongoing trade war between the

United States and China and the uncertainty surrounding the terms and final decision for Brexit.

The threat of additional tariffs from China directly threatens companies that source inputs and

manufacture in China. When selecting investments in Period 1, the team evaluated the exposure

and risk level to current and potential tariffs. The fund also monitored the news surrounding the

Brexit decision and limited our global exposure in areas such as financials. The Carroll Fund

remains cautious to the uncertainty of these events going forward and continues to evaluate the

impact global events would have on the portfolio.

Outlook

In Period 1, the team held a cautious outlook despite a healthy economy and expected to see a

bear market in the coming months. Due to this outlook, the fund deployed a strategy that

included targeting staples in the healthcare and consumer sectors as well as establishing a

position in the technology sector. The fund also re-evaluated holdings in risky sectors such as

financials and ETF holdings that expose the portfolio to sector wide risk. Going forward, we will

continue to monitor economic indicators and events and adjust our outlook according to changes.

5

Performance Summary

Our Mission

To manage our funds and securities in a financially prudent manner, so that we can increase the

overall value of the fund while outperforming our benchmark and the other Torch Funds.

Period Carroll Fund

Return

Benchmark

Return

Spread from

Benchmark

P1 5.0610% 6.0989% -1.0379%

Our Goals Objectives Period 1

1) Beat the Benchmark No

2) Earn a Positive Return Yes

3) Outperform Competing

Torch Funds No

6

Portfolio Breakdown and Returns

Portfolio Breakdown and Returns

Security Start Value End Value % of Portfolio % Return

SPAXX $127,717.30 $102,969.80 17.45%

N/A

AGG $52,284.54

$51,914.94 8.80%

0.13%

AMN $17,613.36

$19,066.86 3.23%

8.25%

AMZN $27,774.56

$29,565.44 5.01%

6.45%

ARKG $13,343.04

$15,151.04 2.57%

17.12%

FINX $19,995.15

$21,112.43 3.58%

5.59%

GS $20,723.00

$20,731.57 SOLD 0.04%

GSK $26,376.24

$29,039.82 4.92%

11.17%

IHI $25,038.30

$27,753.60 4.70%

11.01%

JNJ $15,060.98

$16,775.05 2.84%

12.11%

JPM $25,891.80

$30,668.00 5.20%

19.21%

MRK $30,052.26

$32,469.15 5.50% 8.70%

MSFT $10,489.14

$11,039.00 1.87% 5.24%

PEP $25,048.15

$24,873.94 4.22% -0.70%

RHS $26,956.80

$27,132.29 SOLD 0.65%

RTM $19,619.00

$21,974.00 3.72% 12.48%

USFR $49,974.75

$49,994.70 8.47% 0.47%

VMC $19,358.72

$18,430.72 3.12% -4.59%

VZ $30,904.32

$31,436.80 5.33% 2.74%

XLB $25,549.80

$26,963.38 4.57% 6.11%

XLI $27,558.65

$28,921.85 4.90% 5.47%

Total $561,693.29

$590,120.52

100.00%

5.0610%

7

Portfolio Breakdown

34.72%

5.33%

4.22%

5.01%

17.25%

5.20%

23.77%

5.45%

5.20%

7.69%

Sector Allocation

Alternatives Communications

Consumer Staples Consumer Discretionary

Industrials Energery

Healthcare Technology

Financial Materials

8

Performance and Risk Metrics

P1 Best & Worst Performers

Holding Return % of Portfolio

JPM 19.21% 5.20%

ARKG 17.12% 2.57%

RTN 12.48% 3.72%

JNJ 12.11% 2.84%

GSK 11.17% 4.92%

USFR 0.47% 8.47%

AGG 0.13% 8.80%

GS 0.04% SOLD

PEP -0.70% 4.22%

VMC -4.59% 3.12%

P1 Risk Metrics

Metric Carroll Portfolio Benchmark

Beta 0.953 1

Standard Deviation 0.004 0.004

Sharpe Ratio (Annualized) 4.006 4.876

Treynor Ratio (Annualized) 0.2916 0.332

Performance Relative to Other Torch Funds

Fund Name P1 Return P1 Spread

Carroll 5.0610% -1.0379%

Haslam 5.3900% -1.7300%

Laporte 3.4200% -3.3200%

McClain 6.5000% -0.9600%

9

Return on Holdings

Period 1 Return: 5.0610%

$530,000.00

$540,000.00

$550,000.00

$560,000.00

$570,000.00

$580,000.00

$590,000.00

$600,000.00

Carroll Fund Performance Over P1

10

Alternatives Sector Overview

For our investment purposes, alternatives are defined as bonds, preferred stocks, and related non-

equity ETFs. Alternatives can be exposed to any of the sectors we have described in this report,

including the government through bonds and T-Bills. We are only permitted to invest in

alternatives that are investment grade (BBB) or above due to university constraints. It is also

important to note the fund is currently operating under a 60-40 mandate regarding the percentage

of the fund held in equities and alternatives.

Relevant Events

Alternatives could be an optimal investment in the near future due to the volatility of the

economy and the potential of a recession. Though it is important to note that since many

investors might be looking to sell equities and buy more alternatives, it could be selling at a

premium so it might not be ideal to purchase in this sector. This is because alternatives usually

have a negative correlation with the stock market. Currently, it may be safer to hold on to our

alternatives to mitigate risk due to the possibility of a recession in the near future.

Performance

Over the past quarter, the Bloomberg Barclays US Aggregate Bond Index’s return was 0.18%.1

Carroll Fund Alternatives Holdings’ Period 1 Performance

Start Value End Value Total Dividends Total Return Dividend Yield

$102,259.29 $101,909.64 $649.83 0.29% 0.63%

11

WisdomTree Floating Rate Treasury ETF (USFR)

Holding Description

WisdomTree Floating Rate Treasury ETF is a treasury fund that seeks to mimic the price and

yield performance of the Bloomberg U.S. Treasury Floating Rate Bond Index.2

Top Holdings

Name Weight

US Treasury Frn 4/30/2021 30.04 %

US Treasury Frn 7/31/2021 29.68 %

US TREASURY Frn 1.825862704% 10/31/2021 29.50 %

US Treasury Frn 1/31/2022 10.74 %

Positive Impacts from the Last Quarter

The WisdomTree Floating Rate Treasury ETF provides cost-effective access to newly issued US

government floating rate notes. This helps mitigate risks with potential changes in interest rates

throughout the period.2

Negative Impacts from the Last Quarter

The floating rate aspect becomes less important during periods with minimal interest rate

activity. The fund also has a very low beta and will not appreciate with any large market

upswings.

New Transactions

The Carroll Fund did not make any new purchases or sells of the WisdomTree Floating Rate

Treasury ETF shares.

Period 1 Performance


$49,974.75 $49,994.70 $214.24 0.47% 0.43%

12

iShares Core U.S. Aggregate Bond ETF (AGG)

Holding Description

iShares Core U.S. Aggregate Bond ETF (AGG) seeks to track the investment results of an index

composed of the total U.S. investment-grade bond market.3

Top Holdings

Name Weight

United States Treasury 40.57%

Federal National Mortgage Association 10.63%

Government National Mortgage Association II 6.87%

Uniform MBS 3.76%


iShares Core U.S. Aggregate Bond ETF mitigates risk associated with traditional equities while

also tracking a portion of our benchmark. Lowering interest rates is a positive trigger for this

ETF as bond prices rise and improve investment results.


A rise in interest rates would have a negative effect on the fund as it would cause bond prices to

fall. The team does not foresee any interest rate hikes in the near future but there is also an

opportunity cost associated with being invested in a more conservative security.

New Transactions

The Carroll Fund did not make any new purchases or sells of the iShares Core U.S. Aggregate

Bond ETF shares.



$52,284.54 $51,914.94 $435.59 0.13%% 0.83%

13

Communication Services Sector Overview

The Communication Services Sector consists of industries that transmit data in words, voice,

audio, and video across the globe. The four primary sub-sectors of this sector are telecom

equipment, telecom services, wireless communications, and media. Though this sector can be

volatile, overall, it provides stable long-term growth since these services are essential in today’s

market.4

Relevant Events

Drivers to the communication sector have included the rollout of 5G wireless services, which has

the potential to open the door for technologies such as the internet of things, virtual reality, and

many other innovations.4 Increased volume of services delivered over mobile devices and the

ability to generate revenue from advertisements has been a major driver in this sector.

The communication services sector is exposed to risk due to increased regulatory scrutiny and

backlash from antitrust lawsuits. Regulation also has a significant impact on communications

services companies, and these companies face substantial risk due to data privacy and security

threats. This threat is especially prevalent in the area of social media, where protecting customer

data can prove to be costly.5

Performance:

Over the past three months, the Communication Services sector in the S&P 500 has increased by

8.90%. This outperforms the S&P 500 performance of 9.04% over the last quarter.6

Carroll Fund Communication Services Holdings’ Period 1 Performance

Start Value End Value Total Dividends Return Dividend Yield

$30,904.32 $31,436.80 $314.88 2.74% 1.02%

14

Verizon (VZ)

Holding Description

Verizon Communications Inc. is a telecommunications company that provides wireline data

services, wireless services, internet services, and published directory services. Verizon is the

largest phone service company in the United States and serves more than 118 million customers.

Verizon also sells devices such as phones, tablets, and wearables and has expanded its video and

advertising capabilities3.


Verizon has been an early leader in the 5G rollout across the United States. Verizon has made

many acquisitions to improve design strategy, media presence, security, and ease in delivering

5G technologies. Increased demand for faster streaming has been a primary driver for Verizon’s

acquisitions and growth into the 5G realm.3 Though the rollout of 5G is slow and costly, Verizon

has proven itself a leader in this industry and has started switching large cities over to the 5G

network.7


Regulatory and technological uncertainties constitute a significant risk to companies operating in

the telecommunications industry. Reduced barriers to entry in the wireless coverage business

could increase competition, especially from cable companies, and could drive down prices.8

New Transactions

The Carroll Fund did not make any new purchases or sells of Verizon shares.



$30,904.32 $31,436.80 $314.88 2.74% 1.02%

15

Consumer Discretionary Sector Overview

The Consumer Discretionary Sector includes goods and services that are considered non-

essential by consumers and they become desirable if consumers have enough income to purchase

these goods and services. These goods and services include durable goods, apparel,

entertainment and leisure and automobiles. This sector moves with the economy meaning that

when the economy is weaker, people are less likely to purchase goods and services in this sector.

Relevant Events

E-commerce is continually increasing compared to retail stores which is constantly affecting the

way retailers are marketing their goods and services. Over the past five years, the percentage of

e-commerce retail sales as a percent of total sales has increased from about 6.6% to 11.2%.9

International uncertainty and tariffs are a large risk factor when it come to the consumer

discretionary sector. However, with the recent signing of phase one of the China Trade Deal

might show some promise with easing trade relations with China. China had agreed to

purchasing an additional $200 billion worth of American goods and services and a potential

easing of tariffs that China has placed on American products.10

The Coronavirus has been and will be affecting the consumer discretionary sector because of the

effects it is having on China and the rest of the world. Many companies and businesses in China

are being shut down due to the virus which can affect manufacturing especially in the car

industry. The virus is also heavily impacting industries like hotels, leisure and luxury goods with

people being less likely to travel and with the travel bans that are being imposed.

Performance

Over the past three months, the Consumer Discretionary sector in the S&P 500 has gone up by

10.04%. This outperforms the S&P 500 performance of 9.04% over the last quarter.6

16

Carroll Fund Consumer Discretionary Holdings’ Period 1 Performance


$17,613.36 $19,066.86 $0.00 8.25% 0.00%

17

Amazon (AMZN) Holding Description:

Amazon.com Inc. is an online retailer, that delivers abroad range of products. Amazon retails

many products including books, music, entertainment, computers, electronics, home goods,

clothing, and many other different products. Most of Amazon’s operations are in North

American (60%), International (30%) and Amazon Web Services (10%). They also have

acquired Whole Foods so they are newly in the food/ grocery industry.12

Positive Impacts from the Last Quarter:

With unemployment being low and wages being high, this has been a positive driver for Amazon

stock. Internet and direct marketing retail have grown a lot in the past 5 years, due to online

retailers, like Amazon, becoming bigger and taking up are larger portion of the retail industry.

With e-commerce continually increasing their share of total sales, this is huge positive for

Amazon since they are an e-commerce company. Amazon has also been expanding its online

grocery business with Amazon Fresh. Amazon recently dropped the $15 monthly service fee,

making Amazon Fresh available to all prime members at no extra cost. By removing this fee, it

caused an almost immediate upswing in their Prime Membership engagement. This could

increase their revenue and also help mitigate risk when it comes to a potential swing in the

economy.13

Negative Impacts from the Last Quarter:

Since Amazon is in the Consumer Discretionary sector, this means that it is more volatile to

economic swings. If there were to be a recession in the near future then we would expect

Amazon stock to take a hit. This could be mitigated because of Amazon’s diversity in different

industries, like the grocery and household industries. Another negative impact that could affect

Amazon is it’s increasing competition in the online retailing industry. More retailing companies

are heavily investing in their online retailing due to the increase in demand from consumers.14

New Transactions

The Carroll Fund has not acquired or sold any of its Amazon stock.



$17,613.36 $19,066.86 $0.00 8.25% 0.00%

18

Consumer Staples Sector Overview

The Consumer Staples Sector consists of goods and services that are essential and that people are

unable to cut out of their budgets regardless of the financial climate. These products include

food, beverages, tobacco, and household items. This sector is non-cyclical which means that

goods are always in demand and stays fairly stable with economic change. It consists of nearly

70% of the nation’s gross national product.12

Relevant Events

Since the industries in the Consumer Staples Sector produce goods that are necessary, it is not as

sensitive to the economic cycle. It is a less risky sector in which to invest when there is economic

uncertainty. The number of consumers that are looking for health improving and sustainable

products has been increasing so there could be potential to invest in a company focusing on

health improvement and sustainability. The size of the middle class is consistently increasing

globally which can mean that the demand for household products and other consumer staples are

also increasing. Even though the Consumer Staples Sector is not as volatile as other sectors it is

still important to address trade agreements with other countries as this does impact product

pricing in these industries. The recent signing of phase one of the China Trade Deal shows some

promise with easing trade relations with China and includes China agreeing to purchasing an

additional $200 billion worth of American goods and services.15 This could mean a potential

increase in revenue and profit margins due to the potential of a decrease in tariffs.

Performance

Over the past three months, the Consumer Discretionary sector in the S&P 500 has gone up by

5.74%. This underperforms the S&P 500 performance of 9.04% over the last quarter.16

Carroll Fund Consumer Staples Holdings’ Period 1 Performance


$25,048.15 $24,873.94 $0.00 -0.70% 0.00%

19

PepsiCo Inc. (PEP) Holding Description:

PepsiCo Inc. is a worldwide beverage, snack, and food business. They do about 55% of their

sales in the United States. Their operations consist of six business units including North America

Beverages (NAB), Frito-Lay North America (FLNA), Quaker Foods North America (QFNA),

Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa

(AMENA). PepsiCo Inc. has many different products and brands including Pepsi, Mountain

Dew, Frito-Lay, and Quaker Foods.12

Positive Impacts from the Last Quarter:

PepsiCo Inc. has a very large market share of snacks and soda and this supports their profit. They

are committing to expanding their production capacity and also committing to product

innovation. PepsiCo has been focusing on sustainability in the creation of their products which is

a big positive considering that consumers are focusing more on the environment and the

sustainability of products.17 They are also focusing on health and wellness by using research and

development to make products healthier and also by increasing more nutritious options in their

portfolio. This is a positive because the number of consumers that are actively seeking products

to improve their health is increasing.

Negative Impacts from the Last Quarter:

A negative trigger for the consumer staples sector would be the trade disputes that are going on

with other countries. The signing of the trade deal between the United States and China did not

have an effect of tariffs on Chinese good which can make the price of some consumer staples

products rise. This can cause an issue because usually products in the consumer staples sector are

low margin so any increase in input price could cause potential profit loss.

New Transactions

The Carroll Fund acquired $25,048.15 worth of PepsiCo Inc. stock on October 16, 2019.



$25,048.15 $24,873.94 $0.00 -0.70% 0.00%

20

Energy Sector Overview

The Energy Sector consists of three main cycles of business operations: Upstream, Midstream,

and Downstream. Upstream mainly involves the discovery and extraction of oil, natural gas, and

other energy alternatives. Midstream relates to the marketing, packaging, and shipping of the

energy sources produced in upstream operations. Downstream is the selling and distribution of

the products, most commonly seen at the gas pump.18 We do not currently have any investments

in this sector. The performance of most of these companies follows the performance of the

economy with the price of oil being the most key driver for the sector. The energy sector has

been the worst performing sector over the past five years mostly due to the increase in

production driving prices down. The majority of these companies have been making an

increasing effort to tighten up capital allocation and continue paying dividends to shareholders.

Oil companies face plenty of political and environmental threats to their business especially

amidst growing concerns about the environmental impact from hydraulic fracturing and

horizontal drilling (otherwise known as “fracking”).18 If crude oil prices begin to climb back up,

the next period could be an opportune time to get back into the energy sector.

Relevant Events

Energy companies are highly connected to the American political landscape. Especially in recent

years as America has become more energy independent from the Middle East, political

regulations on this sector have a heavy impact on the performance of these companies. The

upcoming election will have an immense impact on the future of the energy sector. It is more

than likely that the Democrat challenger to Trump will propose a ban on fracking which has been

the driver behind the oil shale production revolution over the past decade. On top of the political

pressure, there is increasing societal concerns over climate change which is a catalyst for

growing concerns over the environmental impacts of these oil drilling companies. For this

reason, we have seen BP pledge that they will become carbon neutral by 2050. It will be

interesting to see in the coming months if others in the sector will follow suit.

Performance

Over the past three months, the Energy sector in the S&P 500 has decreased by 6.60%. This

underperforms the S&P 500 performance of 9.04% over the last quarter.6

21

Financials Sector Overview

The Carroll Fund currently has a holding in JP Morgan (JPM), and sold all of $20,731.57 worth

of shares in Goldman Sachs for a total return of .04% last quarter. The Financials Sector is

composed of entities operating in fields such as financial services, banking, brokerage, asset

management, insurance, and credit services. Drivers of the sector include political policy (such

as tariffs), the Fed (such as the Federal Funds Rate target), and geopolitical events (such as

Brexit). Companies in this sector tend to perform in accordance with the economy; for example,

during poor economic performance, financial institutions are more cautious in lending, harming

the Financials sector.

Relevant Events

With Brexit talks advancing, uncertainty regarding the new agreement could cause financial

firms to be negatively impacted. Depending on how the new agreements between the United

Kingdom, the European Union, and other countries are structured, the costs of business between

them could increase, hurting financial institutions. Next, the implementation of the Current

Expected Credit Losses policy has financial institutions worried that in times of financial stress,

they may not be able to loan out as much credit and earnings may become more volatile.19 On

the positive side, the U.S. economy is still very strong amidst geopolitical threats such as Brexit

and the Coronavirus. The performance of the U.S. economy tends to be a positive sign for

financial institutions, as they generally perform in relation to the economy.

Performance

Over the past three months, the Financials sector in the S&P 500 has gone up by 4.54%. This


Carroll Fund Financials Holdings’ Period 1 Performance


$25,891.80 $30,668.00 $198.00 19.21% 0.76%

22

JPMorgan Chase & Co. (JPM)

Holding Description

JP Morgan is a large American financial services and investment banking institution. They

operate in countries around the globe, and offer services in investment banking, asset

management, wealth management, commercial banking, and private banking. It is the largest

bank in the United States.


Over the last quarter, amidst further progress in Brexit talks, JP Morgan has started to shift some

of its presence to Paris. This will make Paris its second largest European presence behind

London, helping limit potential economic outfall from Brexit.20 Next, with the economy still

performing strong, the value of JP Morgan has continued to increase.


With the implementation of the Current Expected Credit Loss policy on January 1, 2020, JP

Morgan’s allowance for credit losses increased by $4.3 billion, while its after tax retained

earnings decreased by $2.7 billion.21 The new policy requires companies to report credit losses at

the time a loan is originated, as opposed to recording losses as they occur (resulting in higher

expected losses). As a result, many banks fear that during an economic downturn, they will have

to increase their current expected credit losses account, decreasing the amount of money they can

loan out.19

New Transactions

The Carroll Fund did not make any new purchases or sells of JP Morgan shares.



$25,891.80 $30,668.00 $198.00 19.21% 0.76%

23

Industrials Sector Overview

The Industrials Sector is a comprehensive, widespread sector. This sector is comprised of

organizations that are in the business of the manufacturing and distribution of capital goods. This

includes engineering & building products, aerospace & defense, electrical gear, construction, and

industrial equipment. This sector also includes companies that provide provision of commercial

and transportation services and supplies. These companies are in the business of employment,

printing, environmental and office services, airlines, couriers, marine, road & rail and

transportation infrastructure.22

Relevant Events

The speed with which the fourth industrial revolution is approaching is placing a challenge on

manufacturers to keep the momentum going as they attain various milestones along their digital

journey. The industrial sector ordinary falls during economic recessions, however its varying

industries often perform in a different way from one another. Also, manufacturers are

aggressively assembling partnerships in their ecosystem to be the driving force targeting business

goals, ranging from bolstering a traditional area (e.g., improving customer experience) to adding

new capabilities (e.g., creating new business models).23

Performance

Over the past three months, the Industrials sector in the S&P 500 has increased by 3.91%. This


Carroll Fund Industrials Holdings’ Period 1 Performance


$47,177.65 $50,895.85 $237.44 8.38% 0.47%

24

Industrial Select Sector SPDR ETF (XLI)

Holding Description

Industrial Select Sector SPDR Fund is an exchange-traded fund incorporated in the USA. The

ETF tracks the performance of The Industrial Select Sector Index. The ETF holds large cap U.S.

industrials stocks. Its investments are focused on industrial products, including electrical &

construction equipment, waste management and machinery.12 The investment seeks to provide

investment results that, before expenses, correspond generally to the price and yield performance

of publicly traded equity securities of companies in the Industrial Select Sector Index. Under

normal market conditions, the fund generally invests substantially all, but at least 95%, of its

total assets in the securities comprising the index. The index includes securities of companies

from the following industries: aerospace and defense; industrial conglomerates; marine;

transportation infrastructure; machinery; road and rail; air freight and logistics; commercial

services and supplies; etc. It is non-diversified.24


Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade

gradually recover from last year’s significant weakness but downward risks persist, the World

Bank says in its January 2020 Global Economic Prospects.25 Also, manufacturers like these that

are leading the industry are expected to pursue growth of their ecosystems to source the

capabilities needed in order to satisfy their strategic vision. Many of these capabilities include

digital technologies applied to existing manufacturing processes or ones that create customer

stickiness.26


Due to the fact that this sector has the propensity to preform similarly to the economy as a whole,

performance during times of economic downturn can have very negative impacts. The downfall

in multiple companies’ investments in manufacturing often happens during these times and can

slow growth. The ongoing trade war with China is another risk factor that can make a huge

impact on this sector.

New Transactions

The Carroll Fund did not make any new purchases or sells of XLI shares.



$27,558.65 $28,921.85 $143.19 5.47% 0.52%

25

Raytheon Company (RTN)

Holding Description

Raytheon Company is a multinational corporation that specializes mainly in defense and

homeland security. This technology focused company provides electronics, mission systems

integration, communications and intelligence systems, and mission support services. Raytheon is

the top missile provider in the world and is a key player in constructing a comprehensive missile

defense system for the United States government. The United States government accounts for

70% of net sales with the remainder coming from international sources. Raytheon prides itself on

the diverse products and services that it offers and uses this as a key factor to combat potential

budget cuts for the government in certain defense areas.27


The demand for equipment for the military is increasing as governments around the world place

their attention on modernizing their militaries. This is mainly due to the increase in global

security concerns. The vagueness and continuous complexity of the international security

environment will likely boost global defense.29 The company relies heavily on US defense

spending, which will help the company realize stable sales even during tough economic times.

Geopolitical tensions arising in the Middle East is driving demand for Raytheon’s products as

they continue to innovate. The merger with United Technologies will create synergies that can be

leveraged into cost cutting measures. The company continues to operate with a high ROIC,

which promotes further product research and innovation.30


Re-escalation of trade tensions and trade policy uncertainty, decreasing government spending, a

sharper-than expected downturn in major economies, and financial turmoil in emerging market

and developing economies are all risk that impact this company.29

New Transactions

The Carroll Fund did not make any new purchases or sells of Raytheon Company shares.



$19,619.00 $21,974.00 $94.25 12.48% 0.48%

26

Healthcare Sector Overview

The Healthcare Sector is one of the largest in the United States and makes up nearly 20% of the

United States gross domestic product. Our holdings include: AMN, ARKG, GSK, IHI, JNJ, &

MRK. The healthcare industry is broken down into the following sub-sectors ranked by

vulnerability from lowest to highest: Medical products/devices/equipment, Life sciences,

Pharmaceuticals/biotech, Distributors of drugs and medical products, Contract Research

Organizations, Healthcare IT, Hospital services, Health care services, and Hospital staffing.

Future drivers to the industry include disruption from new medical technologies, services, and

payers; aging of the population; and healthcare professional workforce shortages. Key risks to

the sector include heightened regulation from potential healthcare reform, ongoing trade disputes

with China, drug price control pressures, patient cybersecurity breaches, and reduced spending

from economic downturn. Ultimately, there is a lot of room for growth in this sector, specifically

in the medical technology and healthcare IT sub-industries.

Relevant Events

In recent healthcare news, a new distress index report shows chapter 11 bankruptcies in the

healthcare industry far outpace filings in other sectors; a 125% increase in Q4 compared to

benchmark period of Q4 2010. Additionally, the World Health Organization (WHO) stated it is

too early to tell if coronavirus cases are declining and to be cautious of lower counts being

reported from China. The China death toll from coronavirus climbs to 1,770 with 70,548 total

cases in the mainland, with the peak expected to reach sometime in April29. Furthermore,

according to a report by Comparitech, over 1,500 healthcare companies have been hit by

ransomware attacks over the past 4 years, affecting nearly 6.6 million patients, making

healthcare one of the most susceptible industries to an attack29. Finally, according to a new report

by the American Medical Association, telehealth and remote monitoring are becoming

significant forces in healthcare delivery, with the number of telehealth patients doubling from

2016 to 201929.

Performance

Over the past three months, the Healthcare sector in the S&P 500 has increased by 9.64%. This

outperforms the S&P 500 performance of 9.04% over the last quarter.6

27

Carroll Fund Healthcare Holdings’ Period 1 Performance


$127,484.18 $140,255.52 $635.42 10.89% 0.79%

28

AMN Healthcare (AMN)

Holding Description

AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services to

healthcare facilities across the nation. Its workforce solutions include managed services

programs and recruitment process outsourcing. The company operates through the following

segments: Nurse and Allied Solutions, Locum Tenens Solutions and Other Workforce Solutions.

The Nurse and Allied Solutions segment provides hospital and other healthcare facilities with a

range of clinical workforce solutions. The Locum Tenens Solutions segment offers managed

service programs, vendor management systems solution and traditional temporary staffing. The

Other Workforce Solutions segment consists of the following company businesses: physician

permanent placement services, healthcare interim leadership staffing and executive search

services, vendor management systems, recruitment process outsourcing, education, mid-revenue

cycle management, and workforce optimization services. AMN Healthcare Services was founded

on November 10, 1997 and is headquartered in San Diego, CA.30


AMN Healthcare continues to benefit from a positive macro backdrop involving an aging

population that continues to drive demand for an increased number of healthcare professionals.

The company has experienced record revenue growth recently fueled primarily by their recent

acquisition of Advanced, as well as by growth in Travel Nurse Staffing and specialty areas of

speech therapy, imaging, respiratory and lab professionals. Previous acquisitions of Silversheet

and MedPartners will also continue to drive top line growth.31


Ever-changing healthcare policy continues to impose a risk depending on the effects of new

regulations. It has also become increasingly difficult for the company to secure a long-term

supply of healthcare professionals suitable for temporary staffing firms. AMN has also missed

quarterly revenue expectations for their Locum Tenen segment, which continues to pose a

significant risk to future sales.31

New Transactions

The Carroll Fund did not make any new purchases or sells of AMN Healthcare shares.



$17,613.36 $19,066.86 $0.00 8.25% 0.00%

29

ARK Genomic Revolution Multi-Sector ETF (ARKG)

Holding Description

Companies within ARKG are focused on and are expected to substantially benefit from

extending and enhancing the quality of human and other life by incorporating technological and

scientific developments and advancements in genomics into their business. ARKG will be

concentrated in issuers in any industry or group of industries in the health care sector, including

issuers having their principal business activities in the biotechnology industry.

32


ARK Genomic Revolution ETF continues to benefit from increased interest in the area of gene

therapy bioinformatics, bio-inspired computing, molecular medicine, and pharmaceutical

innovations. As developments happen in these areas, personalized medicines and treatments will

soon begin to become disrupters.33


The full potential of developments in genomics has not yet been realized, and companies have

had to incur significant research and development costs with minimal new products and

breakthroughs. Genomics may be key disruptors in the future; however, it may be many years

before large scale practical uses become apparent.33

New Transactions

The Carroll Fund did not make any new purchases or sells of ARKG shares.



$13,343.04 $15,151.04 $0.00 17.12% 0.00%

30

GlaxoSmithKline (GSK)

Holding Description

GlaxoSmithKline PLC is a global healthcare company which engages in researching, developing

and manufacturing of pharmaceutical medicines, vaccines and consumer healthcare products. It

operates through the following four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines

and Consumer Healthcare. The Pharmaceuticals segment researches, develops and makes

available medicines that treat a variety of serious and chronic diseases. The Vaccines segment

produces pediatric and adult vaccines to prevent a range of infectious diseases including hepatitis

A and B, diphtheria, tetanus and whooping cough, measles, mumps and rubella, polio, typhoid,

influenza and bacterial meningitis. The Consumer Healthcare segment markets a range of

consumer health products based on scientific innovation. The company was founded in 1715 and

is headquartered in Brentford, the United Kingdom.


GlaxoSmithKline will continue to benefit from the development of new products. The company

is anticipating the approval of fostemsavir, a first-in-class in attachment inhibitor for heavily

treatment-experienced patients. Shingrix and Nucala also continue to be primary drivers of sales

growth.34 Recent investments in their oncology unit and joint venture with Pfizer should also

bolster future growth.35


The continued and increasing competition of biosimilars pose a significant threat to sales growth.

As the Federal Drug Administration (FDA) approves other biosimilar pharmaceuticals,

GlaxoSmithKline will face challenges to maintaining market share for similar products.

Although they have a large international exposure, the company still faces the risks of major

healthcare reform in the United States.34

New Transactions

The Carroll Fund did not make any new purchases or sells of GlaxoSmithKline shares.



$26,376.24 $29,039.82 $287.88 11.17% 1.09%

31

iShares U.S. Medical Devices ETF (IHI)

Holding Description

The iShares U.S. Medical Devices ETF seeks to track the investment results of an index

composed of U.S. equities in the medical devices sector. This provides exposure to U.S.

companies that manufacture and distribute medical devices and provides targeted access to

domestic medical device stocks.

Top Holdings Include:

36


Innovations in new technologies are driving medical devices that generate data into care

pathways, creating alliances with IoMT systems. These devices that provide and analyze data are

aiding healthcare organizations to improve patient outcomes, lower costs, and improve

efficiency. Software as a Medical Device (SaMD) will also continue to create revenue data

driven revenue opportunities.37


Constant cybersecurity threats continue to pose risks for firms who hold private patient

information. Firms must ensure their networks and data are protected from cyberattacks as they

continue to share an increasing amount of data amongst each other.

New Transactions

The Carroll Fund bought $25,038.30 worth of IHI shares on October 4, 2019.



$25,038.30 $27,753.60 $41.94 11.01% 0.17%

32

Johnson & Johnson (JNJ)

Holding Description

Johnson & Johnson is a holding company, which engages in the research and development,

manufacture and sale of products in the healthcare field. It operates through the following

segments: Consumer, Pharmaceutical, and Medical Devices. The Consumer segment includes

products used in the baby care, oral care, beauty, over-the-counter pharmaceutical, women's

health, and wound care markets. The Pharmaceutical segment focuses on therapeutic areas such

as immunology, infectious diseases and vaccines, neuroscience, oncology, cardiovascular and

metabolism, and pulmonary hypertension. The Medical Devices segment offers products used in

orthopedic, surgery, cardiovascular, diabetes care, and eye health fields. The company was

founded by Robert Wood Johnson I, James Wood Johnson and Edward Mead Johnson Sr. in

1886 and is headquartered in New Brunswick, NJ.


Johnson & Johnson will benefit from key 2020 pipeline events. The potential approval of

ERLEADA, SPRAVATO, IMBRUVICA, TREMFYA, DARZALEX, INVOKANA, and others

will be potential revenue drivers for the coming years. Continued growth internationally will also

be a main top line driver for many products.38 The company was able to achieve double-digit

growth for 10 key products in 2019.39


Primary risks facing Johnson & Johnson include increased competition from new product

rollouts and patents from competitors, challenges of continuous research and development, and

the increased scrutiny of the healthcare industry. They also face potential damages to company

image from a recent lawsuit involving the wrongful marketing of an antipsychotic drug and

downplaying the risks of it causing breast development in males.

New Transactions

The Carroll Fund purchased $15,060.98 worth of Johnson & Johnson shares on October 16,

2019.



$15,060.98 $16,775.05 $109.25 12.11% 0.73%

33

Merck & Co. (MRK)

Holding Description

Merck & Co., Inc. engages in the provision of health solutions through its prescription

medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates

through the following segments: Pharmaceutical, Animal Health, Healthcare Services, and

Alliances. The Pharmaceutical segment includes human health pharmaceutical and vaccine

products. The Animal Health segment discovers, develops, manufactures, and markets animal

health products, such as pharmaceutical and vaccine products for the prevention, treatment and

control of disease in livestock and companion animal species, which it sells to veterinarians,

distributors, and animal producers. The Healthcare Services segment offers services and

solutions that focus on engagement, health analytics, and clinical services to improve the value

of care delivered to patients. The Alliances segment includes results from the Company's

relationship with AstraZeneca LP related to sales of Nexium and Prilosec. The company was

founded in 1891 and is headquartered in Kenilworth, NJ.


Merck will continue to benefit from new product development as they drive their pipeline of

drugs. Recent advances in oncology with drugs KEYTRUDA and Lynparza will drive bottom-

line growth. Recent FDA approval of PIFELTRO, RECARBRIO, ZERBAXA and others will

also have positive impacts on earnings. The company also completed approximately 80

transactions spanning acquisitions, licensing, technology deals and clinical collaborations, which

should benefit company operations.40


Merck faces constant challenges of acquiring Federal Drug Administration (FDA) approval on

drugs moving through their pipeline. They also face the threat of expiring patents and approval

of biosimilars, which will negatively impact their sales if they are not able to roll out new

products in time. Lastly, there is a constant threat of new legislation that could alter the

healthcare landscape and lessen drug prices.

New Transactions

The Carroll Fund did not make any new purchases or sells of Merck & Co. shares.



$30,052.26 $32,469.15 $196.35 8.70% 0.65%

34

Materials Sector Overview

The Materials Sector has a widespread variety of commodity-related manufacturing industries.

Companies that are encompassed in this sector are corporations that manufacture chemicals,

construction materials, glass, paper, forest products and related packaging products, and metals,

minerals and mining companies, including producers of steel. Companies that are classified in

the materials sector manufacture products such as fertilizers, plastic, paint, concrete, cork,

aluminum, gold, timber and paper. Five major industries make up the materials sector:

chemicals, construction materials, containers and packaging, metals and mining and paper and

forest products.41

Relevant Events

According to a report titled “Construction Materials: A Global Strategic Business Report”

announced by Global Industry Analysts Inc., the global materials market is expected to exceed

US$1 trillion in 2020. This will be guided by boosting activity in construction in the commercial

and infrastructure sectors. Also, there are rapidly growing markets, strengthening construction

activity, rapid industrialization and urbanization, and a growth in residential real estate needs and

business going in countries in the Asia-Pacific.42

Performance

Over the past three months, the Materials sector in the S&P 500 has increased by 0.87%. This


Carroll Fund Materials Holdings’ Period 1 Performance


$44,908.52 $45,394.10 $186.23 1.50% 0.41%

35

Materials Select Sector SPDR ETF (XLB)

Holding Description

Materials Select Sector SPDR ETF (XLB) is a passively managed ETF designed to provide

investment results in line with the performance of the Materials Select Sector Index. The most

substantial holdings held in this fund are Linde PLC (15.88%), Ecolab Inc. (7.33%), Air

Products and Chemical Inc. (7.10%), Sherwin-Williams Co. (6.90%), Dow (4.59%), PPG

Industries (4.51%). These companies produce the primary inputs for manufacturing,

construction, consumer goods, and industrials.12


Being in the materials sector, rising middle class and growing need for house in developing

countries benefit growth in this sector. Also, advancement in material producing technology will

lead to the expansion of this market. The growth of the manufacturing, construction, and

industrials are tied to the demand for materials, therefore becoming a motorist for growth in the

materials sector.43


When growth in the commercial and residential industry declines, the need for the raw materials

used to produce these structures will follow suit. Rising labor cost is also a risk in the industry.

Natural disasters could be considered a growth opportunity, as it normally leads to increases in

government spending on infrastructure. However, in some cases they can slow the production of

needed materials due to damaged work sites, inhibiting workers from being able to obtain the

raw materials.44

New Transactions

The Carroll Fund did not make any new purchases or sells of XLB shares.



$25,549.80 $26,963.38 $146.55 6.11% 0.57%

36

Vulcan Materials Co. (VMC)

Holding Description

Vulcan Materials Co. (VMC) is the largest supplier of aggregates in the United States and is

located primarily within the Southern United States. Vulcan’s material products include

aggregates such as stone, sand, gravel and sand, asphalt mix, concrete, and cement. Vulcan also

provides related services and ships there all of their products. Approximately 75% of sales come

from aggregates, 15% asphalt mix, and 10% from concrete. Their primary focus for sales is

within the United States, with 45-55% of their materials going to publicly funded civil

construction such as highways, airports, and government buildings. The remainder of the

materials is used for residential and industrial construction projects.12


Like XLB, rising middle class and growing need for house in developing countries benefit

growth in this sector. Also, advancement in material producing technology will lead to the

expansion of this market. On top of that, the growth of the manufacturing, construction, and

industrials are tied to the demand for materials, therefore becoming a motorist for growth in the

materials sector.43


As stated with XLB, being tied to the growth of the manufacturing, construction, and industrials,

risk of these economic markets slowing is also a direct risk to the materials sector. Also, the

materials industry in its entirety is cyclical in nature, slowed growth during recessions. This is

because the Materials sector act as inputs for multiple other industries.43

New Transactions

The Carroll Fund did not make any new purchases or sells of Vulcan Materials Co. shares.



$19,358.72 $18,430.72 $39.68 -4.59% 0.20%

37

Real Estate Sector Overview

The Carroll Fund currently has no holdings in the Real Estate Sector. The Real Estate Sector

consists of Real Estate Investment Trusts (REITs) and companies who develop property. This

sector tends to perform opposite to economic conditions; for example, when the economy is

weak, interest rates are lower, leading to more investment in building on real estate. REITs in

specific are low growth and yield high dividends, making them attractive in an economic

downturn.

Relevant Events

Currently, REITs of all different makeups are experiencing increased expenses (such as rising

real estate taxes and increased wages), leading to decreased margins.45 Because REITs all pay

real estate taxes, their rising is a considerable threat. On the positive side, the S&P 500’s

dividend yield is near a record low, indicating a potential uptick in the near future.45 This is

especially salient for REITs, which yield high dividends.

Performance

Over the past three months, the Real Estate sector in the S&P 500 has increased by 10.59%. This


38

Utilities Sector Overview

The Utilities Sector is comprised of companies that produce and provide mostly but not limited

to electricity, natural gas, water, and wastewater services. We do not currently have any holdings

in this sector. Because these companies provide a service which is so essential to daily human

life, their business operations are quite steady and heavily regulated and standardized across the

country. For this reason, investing in these companies is usually seen as a hedge against

economic downturn because although their growth prospects are not typically very high, they

have very stable performance. The biggest drivers for these companies include real estate and

population growth as well as costs for production of these resources. Some risks include political

factures such as IRS regulations and tax laws for emissions to the environment as well as outages

due to any number of factors.

Relevant Events

The Utilities sector is closely tied to the performance of the overall economy. If the economy is

doing well, then more people will have jobs and live in homes where they can pay their utilities

bills. Similarly, growth for these companies closely follows the trends of factors such as the

growth of the real estate market or even the population of the country. When consumers are

thriving, utility companies are thriving as well. As the search for cleaner energy has continued,

utility companies have found ways to capitalize on customers desiring cleaner energy sources.

Some of the best performing companies in the sector such as Entergy have capitalized on

reducing carbon emissions from their customer base in order to earn tax cuts not only for

themselves, but also their customers. As the hunt for cleaner, renewable energy sources

continues to make these alternatives more cost efficient, the utilities sector could have a bright

future.

Performance

Over the past three months, the Utilities sector in the S&P 500 has increased by 12.66%. This


39

Technology Sector Overview

The Technology Sector encompasses a variety of firms that participate in the design,

development, and support of computer operating systems and applications. Companies engaged

in the manufacturing of equipment, data storage, networking, semi-conductors, and other

components are also part of the technology sector. Though the technology sector can be volatile,

it has performed exceptionally well over the past year.11

Relevant Events

The technology sector is continually evolving and creating new, disruptive technologies. These

new technologies impact nearly every other industry in the economy and have enormous

potential for growth. An easing of tensions in the trade war with China has also spurred growth

in the technology sector.

The companies operating in the technology sector face risks of a slowing economy, regulation,

and increased cybersecurity risks. The technology sector heavily impacted the economy, and

sector growth could slow substantially if the economy goes into recession. Many companies in

this industry face risks of increased regulation and have become targets of antitrust

investigations. Cybersecurity is an ongoing and ever-changing threat that causes technology

companies to adapt continually.46

Performance

Over the past three months, the Technology sector in the S&P 500 has increased by 17.48%.

This outperforms the S&P 500 performance of 9.04% over the last quarter.6

Carroll Fund Technology Holdings’ Period 1 Performance


$30,484.29 $32,151.43 $0.00 5.47% 0.00%

40

Global X FinTech ETF (FINX)

Holding Description

Global X FinTech ETF (FINX) is an exchange-traded fund that provides exposure to the

technology sector and focuses explicitly on holdings in the “financial technology” subsector.

Fintech encompasses many online banking services such as insurance, investing, fundraising,

and third-party lending. These services are differentiated by the fact that they are provided

through modern technology platforms such as a smartphone application, tablet, or website.

Financial technology is a subsector that has excellent growth potential and offers many services

that traditional banks do not.11


Increasing demand for convenient, fast, and effective banking services from mobile devices has

been a major driver for this ETF. Large banking institutions are in a period of transitioning their

banking platforms to a digital platform. Growth in electronic payments has and will be a major

driver for Fintech companies going forward.47


Risks facing FINX include the uncertainty of regulation, the threat of cyber-attacks, and

exposure to geopolitical conflicts. Companies that operate in the financial technology sector are

exposed to ever changing regulation and trends in tech that they must continually adapt to remain

successful.48

New Transactions

The Carroll Fund did not make any new purchases or sells of Global X Fintech ETF shares.



$19,995.15 $21,112.43 $0.00 5.59% 0.00%

41

Microsoft (MSFT)

Holding Description

Microsoft develops and licenses consumer and enterprise software. The company operates in

productivity and business processes through its legacy Microsoft Office, cloud-based Office 365,

Exchange, SharePoint, Skype, LinkedIn, and Dynamics. Microsoft also has a significant business

segment in the intelligent cloud through infrastructure and platform-as-a-service offerings,

Azure, Windows Server OS, SQL Server. Microsoft also offers personal computing solutions

through Windows, Xbox, Bing search, display advertising, and Surface laptops, tablets, and

desktops.11


Microsoft saw significant success in its public cloud business and the subscription business

model. Microsoft Azure grew at a 92% rate in fiscal 2018 and has continued to be a success for

Microsoft. Azure integrates well with Microsoft’s other offerings and is expected to continue to

grow in the future. Microsoft’s other offerings such as Office 365, Dynamics 365, and LinkedIn

continue to perform well and remain profit drivers for Microsoft.


A large portion of Microsoft’s revenue has traditionally come from client-server architecture.

Thus far, Microsoft has been able to adapt to changes in these areas, however particular services

such as OS, Office, and Server may be at risk. Though Microsoft has established itself as a leader

in the public cloud arena, it must continually adjust its offerings in a rapidly evolving market and

compete with AWS.49

New Transactions

The Carroll Fund purchased $10,489.14 worth of Microsoft shares on December 4, 2019.



$10,489.14 $11,039.00 $0.00 5.24% 0.00%

42

Fund Managers

Alex Esposito: Alex Esposito is currently in charge of managing the

Financials and Real Estate Sectors as his first semester working on the

Carroll Fund. He is a junior from Basking Ridge, New Jersey who

graduated from Ridge High School. Alex’s favorite sport is soccer, and he

loves playing and watching whenever possible. When he is not engrossed

in the sport, he is either fishing, enjoying the outdoors, or listening to a

wide variety of songs. He is currently a part of the Smith Global

Leadership Scholars Program, Honors Leadership Program, and UT

Investment Group. Alex is a Finance major with minors in Economics,

Honors Leadership Studies, and Italian. Alex has accepted an internship

with Fitch Ratings in New York City as a 2020 Summer Analyst.

When he graduates college, his current goal is to either start a business

with his twin brother or work in the financial industry. Whichever path

Alex takes, he would like to be financially successful, so he can help solve

bigger problems in the world and also explore it.

Brad Hornsby: Bradford Hornsby is an Accounting major with a Finance

collateral from Nashville, Tennessee. He is currently in charge of

managing the Carroll Fund’s Energy and Utilities Sectors. He is involved

on campus through the Kappa Sigma Fraternity where he has served as

Assistant Treasurer and Chair of Standards of Fraternal Excellence. He is

involved in the Knoxville community through serving with Leaders for

Readers at Pond Gap Elementary school. In his free time, he can be found

at the T-Rec basketball courts or driving passengers for Uber. He is

hoping to receive an internship in either Accounting or Finance for the

summer and then to complete his Masters of Accountancy and CPA over

the following two years.

43

Colson Myers: Colson Myers is a Junior from Franklin, Tennessee

studying Finance and Business Analytics at the University of Tennessee.

He is currently a member of the Tennessee Capital Markets Society and

the Alpha Tau Omega fraternity on campus. Colson covers the Healthcare

Sector, which includes medical products/devices/equipment, life sciences,

pharmaceuticals/biotech, distributors of drugs and medical products,

Contract Research Organizations, healthcare IT, hospital services,

healthcare services, and hospital staffing. After graduating he plans on

becoming a CFA charterholder and wants to work as a research analyst or

portfolio manager.

Emily Myers: Emily is a junior currently completing her second semester

on the Carroll Torch Fund. She is currently in charge of managing the

Technology and Communications Sectors of the S&P 500 on the Carroll

Fund. Emily is a junior from Nashville, Tennessee and graduated from

The Harpeth Hall School. Emily enjoys hiking, playing volleyball, and

traveling. Emily was a participant in the Vanderbilt Accelerator Program,

an intensive four-week consulting program at the Owen Graduate School

of Management, and completed an internship with Thompson Research

Group, a construction-focused equity research firm in Nashville. Emily is

an Analyst in the Master's Investment Learning Center on campus and a

candidate for Beta Alpha Psi. Emily has accepted an audit internship with

Crowe for the summer of 2020 and has plans to study abroad in Florence,

Italy, in the Fall of 2020. Following graduation, Emily plans to attend a

Masters of Accountancy and commence her career at a public accounting

firm.

44

Kojak Wells: KoJak Wells is a senior studying Finance with a collateral in

Business Analytics and Statistics. He is in charge of managing the

Industrials and Materials Sectors of the Carroll Fund. Mr. Wells currently

holds a 4.0 GPA and plans to attend a Master’s of Science in the Business

Analytics Program. Kojak graduated Summa Cum Laude with an

Associates Degree in Business Accounting in December 2018. Mr. Wells

has been SGA President, as well as Chair of the TBR’s and THEC’s

Student Government Presidents’ Executive Advisor Board. He has held

internships as a Business Development Coordinator at Cross

Instrumentation and Integration, and at Vanderbilt Mortgage and Finance.

This is KoJak’s first term on the Carroll Torch Fund.

Marisa Medina: Marisa is currently a junior majoring in both Finance and

Business Analytics with a collateral in Economics. This is Marisa’s first

semester on the Torch Fund and she is managing the Consumer Staples,

Consumer Discretionary, and the Alternatives Sectors. Marisa also works

as a student assistant for the Office of Information Technology at the

University of Tennessee. She also plays on the Women’s Lacrosse Club at

the University of Tennessee. In her free time, she fosters kittens for a local

animal shelter while also spending time with her cat Nala. She plans on

getting her master’s in business analytics after graduation.

45

Works Cited

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Bloomberg, 14 Feb. 2020, www.bloomberg.com/quote/LBUSTRUU:IND.

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income/usfr.

3. Bloomberg.com, Bloomberg, https://www.bloomberg.com/

4. Schwab.com. “Communication Services Sector Rating: Marketperform.” Schwab

Brokerage, www.schwab.com/resource-center/insights/content/communications-sector.

5. Westcott, Kevin, and US Telecom. “2020 Telecommunications Industry Outlook.”

Deloitte United States, 8 Jan. 2020, www2.deloitte.com/us/en/pages/technology-media-

and-telecommunications/articles/telecommunications-industry-outlook.html.

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eresearch.fidelity.com/eresearch/markets_sectors/sectors/si_performance.jhtml?tab=siper

formance.

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rollout/.

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2020, library.morningstar.com/v2/quote?id=0P000005QY&typeid=ST.


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agreement-but-key-details-still-unclear.html.


12. Hottovy, R.J. “Amazon Fresh Is Finally Ready for Prime Time.” Morningstar, Inc., 22

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prime-time.

13. Downie, Ryan. “The Biggest Risks of Investing in Amazon Stock.” Investopedia,

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risks-investing-amazon-stock.asp.




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