CFA INSTITUTE RESEARCH CHALLENGE
IN SOUTHERN CALIFORNIA
HOSTED BY THE CFA SOCIETIES OF
LOS ANGELES AND ORANGE COUNTY
KICKOFF MEETING – 4 NOVEMBER 2013
Nathaniel Downes, CFA
Associate Portfolio Manager
Jitendra Motwani, CFA
Senior Associate
Chad Noorani
Retirement Plan Consultant
CFA SOCIETIES OF LOS ANGELES & ORANGE COUNTY
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SPONSOR ACKNOWLEDGMENT
We would like to offer a special thank you to our sponsors for the 2013-2014
CFA Institute Research Challenge in Southern California
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2013 GLOBAL CHAMPIONS
Wrocław University of Economics representing the CFA Society Poland
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WHAT IS THE CFA INSTITUTE RESEARCH
CHALLENGE?
• How is it organized?
- Worldwide intercollegiate
competition between teams of
students
- Organized by local CFA Institute
volunteers – usually through CFA
member societies
- At least 4 teams of 3-5 students
participate
• What does it involve?
- Analysis of a publicly-traded
company
- Interviews with company
management
- Mentoring by a CFA charterholder
- Research report writing
- Presentation of research
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2013 RESEARCH CHALLENGE NETWORK
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2013 TOURNAMENT DIAGRAM
Global Final
AP
Regional
EMEA
Regional
Americas
Regional
~20 Teams
~25 Teams
~48 Teams
90+ LOCAL LEVEL CHALLENGES
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BENEFITS FOR STUDENTS
• Best practices in research and report
writing
• Real-life learning experience as an
Equity Analyst
• Access and exposure to leading
industry professionals
• Professional report and experience to
use on resume/CV and job interviews
• Experience presenting to top financial
professionals
• Individual and team prizes
• Opportunity for travel
• Potential for media exposure
• Network of over 10,000 students and
2,200 volunteers worldwide
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GLOBAL NETWORK OF THE WORLD’S TOP
BUSINESS AND FINANCE STUDENTS
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PARTICIPATING TEAMS (CFALA)
University
Faculty Advisor
California Polytechnic State, San Luis Obispo
Cyrus Ramezani, PhD
Pepperdine University
Edward Fredericks, PhD
CSU, Los Angeles
James Refalo, PhD
UCLA Anderson School of Management
TBD
Drucker School of Management, CGU
TBD
USC Marshall School of Business
Suh-Pyng Ku, PhD
Loyola Marymount University
Chun Lee, PhD
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PARTICIPATING TEAMS (CFAOC)
University
Faculty Advisor
California Polytechnic, Pomona
Majed Muhtaseb, CFA
California State University, Long Beach
Peter Ammermann, PhD
Chapman University
Fadel Lawandy
Claremont McKenna College
Eric Hughson
University of California, Irvine
Todd Richey, CFA
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COMPETITION TIMELINE
Today
Kick-Off
TBD (Nov./Dec.)
Company Presentation
24 January 2013
Register with CFA Institute
N/A*
1st Draft Due to Mentor
31 January 2014
Final Report Due
21 February 2014
Local Final Presentations
18-19 March 2014
Regional Final (Denver, CO)
25 April 2014
Global Final (Bangkok, Thailand)
*This date is at the discretion of both the team and mentor.
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RULES OVERVIEW
• Each team consists of 3-5 students
(undergraduate or graduate)
• Mentors and faculty may NOT contact
the company
• Only one team may represent each
university
• Mentors, faculty, and subject company
may NOT provide material non-public
information
• Students must be enrolled in the
university they represent and
registered for at least a part-time
course load at the time of the kickoff
meeting
• Reports and presentations must be the
students’ original work
• Students may not have contact with
the subject company outside of
organized events
• Students may not enlist the help of
any professionals other than the
mentor or faculty advisor
• Written reports must conform to the
guidelines set forth by CFA Institute
and include the cover and back pages
provided by CFA Institute
• Teams may not use props in their oral
presentations
• Students, mentors, and faculty must all
agree to abide by the CFA Institute
Code of Ethics and Standards of
Professional Conduct
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ADVISOR AND MENTOR INVOLVEMENT
Faculty Advisor
Industry Mentor
• Insight and guidance on research
methods and tools as taught in
academia
• Insight and guidance on industry
practice
• 10 hours maximum of productive
time
• Face to face or virtual
• Access to faculty for other projects
unrelated to the Research Challenge
is permitted
• All work must be the original work of
the students
• 6 hours maximum of productive time
• Company management question
development
• Review first draft of research report
• Presentation development
assistance
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ETHICS RESOURCES
• Ethical Standards for Investment
Professionals: An Interactive CaseBased Course
• Ethics Course Module 2: Standard
II—Integrity of Capital Markets
• Ethics Course Module 3: Standard
III—Duties to Clients
• Ethics Course Module 6: Standard
VI—Conflicts of Interest
• Ethics Course Module 7: Standard
VII—Responsibilities as a CFA
Institute Member or CFA Candidate
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SAMPLE REPORT
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REPORT SCORING
Research Report Evaluation Form
Maximum
Points Comments
Section
Business Description
5
Industry Overview &
Competitive Positioning
15
Lack of sufficient information to support recommendation.
Not a comprehensive understanding of the company's positioning and/or competitors. No
understanding of company's economic advantage, Overstated company's advantage - not
grounded in facts.
Investment Summary
20
Not logical. No or insufficient summary of salient points. Strategy is not grounded in financials.
Valuation
20
Method is flawed. Not substantiated with industry information.
Financial Analysis
20
Flawed assumptions. Too many errors in financial analysis. Financial analysis does not support
conclusion.
Investment Risks
15
Missed too many important risk items. Risk and conclusion are not logical.
Other Headings
5
Missed important information available.
Total
100
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PRESENTATION SCORING
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SUBJECT COMPANY : MATTEL INC TICKER: MAT
Mattel, Inc., together with its subsidiaries, designs, manufactures, and markets various toy products. The
company operates in three segments: North America, International, and American Girl. Its products comprise
fashion dolls and accessories, vehicles and play sets, and games and puzzles. The company also publishes
advice and activity books, as well as magazines. It offers its products under the Mattel Girls and Boys brands,
including Barbie, Polly Pocket, Little Mommy, Disney Classics, Monster High, Hot Wheels, Matchbox, Tyco
R/C, CARS, Radica, Toy Story, Max Steel, WWE Wrestling, Batman, and Superman; Fisher-Price brands
comprising Fisher-Price, Little People, BabyGear, Imaginext, Dora the Explorer, Go Diego Go!, Bubble Guppies,
Thomas & Friends, Mike The Knight, Octonauts, Mickey Mouse Clubhouse, Disney’s Jake and the Never Land
Pirates, See ‘N Say, and Power Wheels; and American Girl Brands, such as My American Girl, Bitty Baby,
McKenna, and the newest Girl of the Year. The company sells its American Girl products directly to consumers
through catalog, Website, and proprietary retail stores in the United States and Canada. Mattel sells its other
products directly to retailers, including discount and free-standing toy stores, chain stores, department stores,
and other retail outlets; to wholesalers; and through agents and distributors worldwide. The company was
founded in 1945 and is headquartered in El Segundo, California.
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SUBJECT COMPANY (CFAOC)
Reed’s, Inc. (NYSE: REED) makes the top-selling natural sodas in the natural foods
industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six
award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being
brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process
that predates commercial soft drinks. The Company owns the top-selling root beer line in
natural foods, the Virgil’s Root Beer product line, and a top-selling cola line in natural
foods, the China Cola product line. In 2012, the Company launched Reed’s Culture Club
Kombucha line of organic live beverages. Other product lines include: Reed’s Ginger
Candies and Reed’s Ginger Ice Creams. In 2009, Reed’s started producing private label
natural beverages for select national chains. Reed’s products are sold through specialty
gourmet and natural food stores, mainstream supermarket chains, retail stores and
restaurants nationwide, and in Canada, as well as through private label relationships with
major supermarket chains.
Website: http://www.reedsinc.com
Founded: 1987
Total Worldwide Employees: Approx. 61
Chairman and CEO: Christopher J. Reed
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WHERE TO BEGIN
• Visit the CFA Institute Research
Challenge website:
www.cfainstitute.org/researchchallenge
• Register for the competition
- Peruse educational materials
selected specifically for
participants
- Watch videos of past
presentations
- View past reports from winning
teams
• Students MUST register on the CFA
Institute website using the
registration form provided by the
local host.
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QUESTIONS?
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