GTSF Investments Committee - Georgia Tech Student Foundation

GTSF Investments Committee
Mentorship, Fall 2013
Daniel Bruce
 Week 1
 Intro/About the IC / Intro to Capital Markets
 Critical Ratios / Financial Statements / Fundamental Analysis
 Week 2
 Macro/Micro Analysis / Growth Drivers / Basic Technical Analysis
 How to do a pitch/presentation / Exit Strategies
 Week 3
 Sector Work / Rotationals
 Sector Work / Rotationals
 Bring a laptop to every meeting
 Expected to learn outside the sessions
 TD Ameritrade
 Be thinking about what sectors interest you
 Will get into more detail later
GT Student Foundation
“Moving forward by giving back”
 Development Committee
 PR and Marketing Arm
 Fund Raising
 Allocations Committee
 Makes Grants to Student Organizations
 ~$30,000 per year
 Investments Committee
 Invests and Grows Endowment
Welcome to the IC
 Largest student managed endowment in the country.
What’s New This Year
 Mentorship Assessment
 At the end of Mentorship, an Analyst Test will be administered
 Top Performers will be granted Analyst roles
 Others are welcome to attend meetings and other IC events but
will not be allowed to pitch or present.
 Professional Dress While Presenting
 No pitches/presentations will be heard otherwise
 Exit Strategy
 Every presentation must come with an exit recommendation.
No Exceptions.
Asset Classes
 Asset Classes
 Equities
 Company Stock
 Alternative Investments
 International Companies
 Commodities
 Hedges
 REIT’s
 Special class of company
 Not necessarily limited to real estate
 Fixed Income
 Sovereign Debt
 US Bonds
 Cash
 Financials
 Banks, insurance, etc
 Energy
 Oil, Nat Gas, Alternative Energy
 Technology
 High Tech, hardware, semiconductors, software
 Services
 Anyone that doesn’t sell a physical product
 Staples
 Consumer non-discretionary items, shampoo, etc…
 Cyclicals
 Discretionary items, retail, etc…
 Health Care
 Pharmaceuticals, Health Care Services, etc…
 Industrials
 Machinery, engines, etc…
What is the Stock Market?
 A loose network of economic transactions for the trading of
company shares and derivatives at an agreed price.
 Not in any one physical location, although there are trading
 Largest equities-based exchange in the world
 World’s first electronic stock market
 Stock – individual units of ownership of a company
 Usually issued by a company to raise capital or reward employees
(hence, capital markets)
 You and I can buy pieces of company ownership for publically traded
companies on one of the above exchanges.
We will get into these
next time.
Important Benchmarks
 Dow Jones Industrial Average
 The “Dow 30” or just “The Dow”
 30 Large Cap Stocks
 S&P 500
 500 Largest Public Companies
 Tech Weighted Index with >3000 Stocks
 Exchange Traded Funds
 Basket of stocks or other financial instruments meant to achieve
the performance of a certain idea.
 Ex: Grains, Financials, S&P, Euro
 Trades Like a Stock, Acts Like a Mutual Fund
 Highly Liquid
 Have Been Blamed for Increasing Systematic Risk
 ETF’s make whole sectors move in tandem, reducing the
benefic of diversification
Important Terminology
 Bulls
 Group of traders who are generally positive about the movement
of a stock or the market as a whole.
 “bullish”
 Bears
 Group of traders who are generally negative about the
movement of a stock or the market as a whole.
 “bearish”
Why the IC?
 Daniel Bruce – Director of the Mentorship
 Alex Han – Senior Managing Director
 Nick Keith – Senior Financial Director