Villanova Equity Society

1
Villanova Equity Society

• December 13, 2005

2
Welcome

• Jaclyn Lepore
• Co-President
• Class of 2006
• CF Finance, Accounting
• John DellaNoce
• Co-President
• Class of 2006
• CF Accounting, Finance

3
Introduction

• Our Organization
• Our Goals
• Our Structure
• Two Funds
• VU Large Cap
• VU Midcap
• Investment Process
• Future Plans

4
Our Organization

• Villanovas only student-run investment club
• Re-launched in October 2005
• 50 Members
• Open to all undergraduate students
• Actively Manage Two Mock Funds
• VU Large Cap Fund
• VU Mid Cap Fund
• Meet Weekly

5
Our Goals

• Provide real world investment experience to
  undergraduates of all majors
• Utilize classroom concepts with real investment
  decisions
• Provide a fun and interactive environment
• Understand what drives financial markets,
  security prices, and investment decisions.
• Empower members to contribute and make investment
  decisions
• Flat organizational structure
• Each analyst responsible for a sub-industry
• Help members to understand investment process
• Key is managing expectations
• Familiarize students with financial software in
  Applied Finance Lab.
• To make Villanova students more competitive for
  internships and full-time positions

6
Organizational Structure
7
Sector Teams

• 5 Sector Teams per Fund
• Sector Captains
• Responsible for each sector team
• Present investment ideas to Chief Investment
  Officer
• Analysts
• 2-5 analysts per team
• Analyst entirely responsible for a sub-industry
• Discuss investment ideas with sector team

8
Two Funds
9
Investment Process

• Analyst Level
• Bottom-up fundamental approach
• Understand the companys business
• Business segments, major products services,
  major customers, trends within business and
  sector
• Evaluate the strength of the company /
  Fundamental Analysis
• Financial statement analysis
• Growth prospects, earnings expectations
• Valuation
• Comparative Analysis
• Simplified Approach - Identify companies with
• Lower valuations than industry, but comparable
  growth prospects
• Similar or slightly higher valuations, but
  stronger earnings prospects

10
Investment Process

• Investment Committee Level
• Evaluate recommendations of analysts and sector
  team captains
• Sector teams make recommendations to Chief
  Investment Officer
• Decide sector weights based on macroeconomic
  factors
• Portfolio Manager enters trades and monitors
  portfolio performance

11
Comp Sheets Comparative Analysis
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(No Transcript)
13
Online Portfolio Tracking Quicken.com
14
Weekly Meetings

• Group Discussion format in Applied Finance Lab
• Weekly handout at meetings with model portfolio,
  performance summary, market information, and
  changes to portfolio
• Portfolio Manager reviews performance and changes
  from prior week
• Chief Investment Officer
• Discusses economic information from prior week
• Updates team on portfolio strategy
• Sector captains
• Discuss news, portfolio changes, and earnings
  within sector

15
Future Plans

• Institutionalize our investment process
• Receive funding
• Transition from mock portfolio to real portfolio
• Plan more speakers and events
• Example Annual NYSE trip, trip to trading
  floors, etc.
• Continue to generate more excitement about
  investing
• More students from different colleges of the
  university

16

• Thank You
• Jackie and John