 Good afternoon everybody. I'm Susan McTiernan and I have the great pleasure of serving as Dean of the Gebelli School of Business here at Roger Williams University and I want to extend to you a very warm welcome on behalf of my colleagues in the Gebelli School and my colleagues at Roger Williams University. This is always such a great event for us and as I was thinking about today I realized that I was actually here at the same time last year when I was interviewing for the position that I now hold and I remember going home after my visit to Roger Williams and attending this presentation last year and saying to my husband that I could not believe what these young people, these students were able to do with these investment funds. Their performance with the funds and their performance in terms of their presentation was amazing and I have since been pretty well even more impressed since I have had the pleasure of serving as Dean of the Gebelli School these last nine months. This program, the CAFE program is not only one of the most important and showcase programs within the Gebelli School but it is a terrific program that exhibits the kind of experiential learning that has been supported by our President Donald Farish who is with us this afternoon. Thanks for being with us President Farish and by those of us in the school and at the university it's a core of what we do to provide our students some exposure to the real world and ability to get out there and really do something so that when they get to the point where they're interviewing for their first job they can show an employer what they can do and our students can really do a lot. So I want to say welcome to all of you, thank you so much for taking the time to be with us and I will turn the program over now to our wonderful team of CAFE students to tell you about their performance. In esteemed guests for joining us today, being a part of this special occasion, we are very excited to present to you our growth portfolio for the first time in nearly four years. Before we get started I'd like to introduce myself, my name is Alex Barry and the student fund managers that stand before you. To my left we have Loreto Maldonado, Zach Gehring, Kyle Laughlin and Kagan Morse. To my right we have Scott Buhlman, Jacob Steinhoff, Amira Cubane, Thomas Abigard and Kyle Palank. Our success this semester would not have been possible if it weren't for our associate directors Molly Patron and Guthrie Carpenter, our managing director Susan Nguyen and of course our program director Dr. Michael Mellon. We would now like to tell you a little bit about the CAFE and how it truly is one of the top programs in the nation. When we secondly enter the CAFE room we stop being students and begin our transformation into financial analysts. We take on the role of student fund managers when we incorporate our top-down analysis approach all the way until we buy in and begin to actively manage our fund. Being a part of the CAFE program provides us with access to the latest financial analysis platforms which allows us to make decisions in real time. With six Bloomberg terminals as well as Quote Equity Plus we have access to tools that provide a great advantage in industry after graduation and this facility is a great privilege to us because everything we do is to replicate industry and considering that we manage two real-dollar portfolios worth over a quarter million dollars the CAFE is a perfect example of experiential learning. Another factor that separates us from other programs in the nation is we do not need to seek the approval from a board of directors. In order to execute a trade we simply need approval from our team, our management directors and our managing director to be obtained rather quickly through email or text. Our ability to execute trades in a quick and efficient manner allows us to capitalize an ideal entry and exit points and enables us to outperform in a constantly changing environment. Although this has been a learning process the CAFE is not solely taking notes and studying from textbooks rather we implement our teachings actively invest and make trades with the ultimate goal of outperforming the market on a risk-adjusted basis. You can travel across the country and I guarantee you that you will not find a program that can emulate the CAFE. We stand before you today and can honestly say that this has been a one of a kind opportunity. Typically the growth fund is liquidated to zero at the start of each semester in order to allow student fund managers the full investment experience however this will no longer be the case. Our fund has not only outperformed on a risk-adjusted basis to date but we are confident that it will continue to do so throughout 2015 and beyond. We would now like to explain what constitutes a growth objective for us as student fund managers. A growth objective means seeking returns within a short-term holding period which usually encompasses taking on more risk or volatility. This differs from the objective of our value fund which would typically be presented before you today. A value objective encompasses a long-term buy and hold strategy in which we student fund managers would seek promising outlook in a three to five year horizon. Although we have a growth objective we realize that we are managing real-dollar portfolios and for that reason we have targeted the proper portfolio metrics in order to maximize our returns while taking on minimal risk. As you can see in this chart behind me a few of the metrics that we focus on include price-to-earnings spread, price-to-earnings growth ratio as well as a beta less than that of the market. For further review we have provided these metrics in your packets as well as how we utilize them. The difference between our portfolio weighted trailing PE and our portfolio weighted forward PE indicates that our fund has substantial room for growth. Although it did not meet our ideal peg metric we are confident that with appropriate weightings in the holding of our portfolio we have significant room for growth. It is important to note that this growth is not simply the product of taking on undue risk. After all everybody our beta is exactly where we want it to be from the start of the process. Our performance has derived from constructing a portfolio that matches these metrics on a portfolio weighted basis. Through this and proper weightings we have ensured that we will outperform the market as well as our competition on a raw return and risk-adjusted basis. Alpha is the most widely used metric for measuring risk-adjusted performance. It takes the volatility of a portfolio and compares it against the risk-adjusted performance of a benchmark index. The index that we use to compare our portfolio against is the S&P 500 because 86% of our holdings fall within it. We managed to yield an alpha of 2.41 which indicates we are able to outperform the market on a risk-adjusted basis by 2.41%. So now that you have a pretty good understanding of our performance over our specific holding period you must be pretty curious as to the methodology and construction of such a successful portfolio. To further delve into this I would now like to invite Zach, Kyle and Jacob. No portfolio should ever be constructed without first understanding current and future economic conditions both around the world and in the United States. Since markets are global by nature we begin our investment strategy by analyzing over 40 economies and focus on the ones that will affect the United States the most. The major economies we focus on consist of Europe China and Japan is all of which are effected and are affected by our domestic market. We analyze these economies using key indicators such as GDP, stock market returns and more as seen on the slide behind me. First we took a look at Europe where we noted deflationary conditions, stagnant unemployment as well as some uncertainty surrounding Greece and their debt. For these reasons Mario Draghi and the ECB implemented a quantitative easing policy which was meant to stimulate growth as well as fight deflation. From this loose economic policy we discerned that the EU was actually in a recovery stage with an economic cycle experiencing a large amount of volatility due to Greece nearly defaulting on their debt. Next we take a look at the Chinese economy which is showing signs of an economic slowdown. With slowing industrial production and GDP growth rate we expect them to expand their balance sheets and implement stimulus in order to accelerate the economy. We've seen this most recently with the reduction of the reserve ratio by the central bank. Finally Japan will continue to benefit from low oil prices and a weaker yet. Due to the moderate success of Prime Minister Shinsu Abe's Abenomics policies Japan has begun to export aggressively and this has lifted them out of their most recent recessionary period. And although we see growth in many of these economies we still feel they're full of uncertainty and volatility. Thus pushing us more towards our domestic market where we understand that America is further along in the economic recovery cycle than these aforementioned economies. In regard to our domestic economic environment we maintain a moderately bullish outlook as we expect a moderate hike in late 2015 and early 2016 which is a clear signal of economic strength. Also supporting our moderately bullish outlook is a successful ending of quantitative easing. Consumer sentiment reaching all time high since 2008 and our continued positive GDP growth. Although recently we have seen some hiccups with missing economic indicators such as ISI manufacturing GDP and jobless claims. All of which we feel with this in mind the inflation rate is also not increasing at the rate Federal Reserve would like. This reinforces our belief that the interest rate will be pushed back close to 2016 allowing our equity market to continue its bullish run. From our analysis we determined that the United States is driving the world-wide recovery to be the safest and most rewarding place for our investments. After concluding our economic outlook we then utilize three main forms of analysis to select our companies. Fundamental, behavioral and technical analysis. At this point I would like to mention that fundamental is the most important and prices are about 65% of our analysis. Fundamental analysis is a foundation of investing. It is the analysis of the underlying business itself. With this in mind we analyze it using financial statements and financial ratios such as market, profitability, liquidity and activity ratios. Some blue market ratios we focus on are the price earnings both trailing forward, price earnings growth ratio or PEG and beta. We also focus on profitability ratios such as return on assets, return on equity and liquidity ratios such as the quick and current ratio. Fundamental analysis also incorporates the interpretation of income statements, balance sheets and most importantly cash flows. This doc always reminds us all roads lead back to cash flows. Conducting a fundamental analysis will help you better understand how your company will perform over your upcoming holding period. For your viewing pleasure we will provide a formal sheet in your packet that discusses all the ratios that we will talk about in our presentation today. Our next step to company evaluation is behavioral analysis. This comprises about 25% of the total analysis spent on each company. Behavioral analysis allows us to ensure that there is a growth catalyst present and we do this by analyzing current events and company news and we are able to do this by setting alerts on our phones modern Bloomberg terminals as well as keeping up to date on major news centers across the world. The general investing public thrives on news causing investors sentiment to sometimes be swayed by a relevant news story. This is for us as analysts to analyze sector, industry, company and even competitor news. Throughout this semester we as student fund managers have been able to wade our way through the relevant and irrelevant news stories. This ability to do such comes from the constant practice of our beloved daily reports. Every day student fund managers are required at four reports a day. At 4 am, a morning, a midday and a closing report. All of which encompasses domestic, foreign and holding news while keeping in mind informing our fellow student fund managers of what's going on within our fund. Our final step of analysis is technical analysis. This comprises about 10% of the total analysis spent on each company. Technical analysis or momentum investing is the interpretation of trade triggers to find the opportunity to buy or sell security. Some of the trade triggers we pay most attention to are relative strength index or RSI, stochastics and moving average convergence or divergence for MACD. RSI and stochastics are both the way to measure that a company is overbought or oversold. Well, MACD will show you the convergence and divergence to moving averages. These three technical triggers, along with more technical analysis, will discuss further on in our presentation. I'd now like to invite Okagan, Tom and Mierath to discuss our sector weightings. Now what truly differentiates a successful portfolio from a mediocre one? Based on the S&P 500 sector weightings, which reflect the percentage of GDP generated by each sector, we then developed our investment strategy to overweight, underweight and equal weight each individual sector while also keeping in mind our overall objective of being a domestic large cap growth fund. By allocating our portfolio like so, we were able to minimize risk, well excuse me, while also maximizing potential return. However we are worried about factors such as a market pullback due to the relative highs the market have been achieving and thus weight our sectors appropriately. For example, we underweighted both tech and health care because we thought that they are a more volatile sector. We also overweighted sectors such as consumer discretionary and consumer staples because they're more of a safe sector. This was done as an effort to protect ourselves against the possible technology or healthcare bubble popping. However, we still managed to find companies that would provide for ample return to compensate for the underway. Within the technology sectors, our holdings were able to return 10.90% year-to-date compared to the technology ETF that only returned 2.68% year-to-date. An ETF is a security that tracks a particular set of equities within the return index. We have a similar story within the healthcare sector as we were concerned with the risk attributed to the biotech industry as we felt a bubble might be forming. This then led us to seek out investment opportunities that were better positioned to outperform. Hence, we decided to underweight the healthcare sector while still returning a staggering 27.79% year-to-date. This is in comparison to the healthcare ETF which only returned 7.8%. Now due to the risk averse nature of our portfolio, we felt that necessary to overweight the consumer staples sector because it's more of a defensive sector. Now through our selected holdings, we were able to return 13.5% year-to-date which is significantly better than the ETF which only returned about 2.9%. During the early part of the year, we saw a rise in wages as well as favorable employment numbers which gave us a bullish outlook towards a consumer discretionary sector. Within our portfolio, our consumer discretionary holdings were able to return 10.59% compared to its ETF that only returned 6.83% year-to-date. Two sectors we also thought that would underperform was energy with a large drop in oil prices as well as volatility surrounding that sector and telecommunications due to its lagging performance and lack of ease of entry within that sector. Now after establishing which sectors we thought were strong and those we felt were weak, we then identified the strongest industries within their respective sectors. Following this, we then identified key drivers that would allow these industries to keep outperforming such as the Medicare provisions for the healthcare sector. This gave us a broad outlook on which companies we felt would make strong investments. Now that we have talked about our waiting symbols sector and industry, we would now like to show you our portfolio as a whole year-to-date. As you can see, because we overweighed the consumer discretionary and consumer staples, we were able to return 4.58% year-to-date. At this time, I would now like to welcome Lorenzo to join Amira as they will further discuss some of our holdings. I'd like to tell you the story behind how we found one of the most fundamentally strong companies using the top-down analysis approach. Swift Transportation Company is a top-ranked United States company within the truckload industry. After conducting our top-down analysis, we learned that US GDP was projected to increase by 3%. Knowing GDP is an industry driver for the trucking industry, we knew we saw this as a great investment opportunity within an industry that was poised to thrive throughout 2015. Upon further analysis, we ended the truckload rates were projected to increase by 5%, which would boost revenues for 2015 by 4%. This increase in revenue was then estimated to cause a spike of 16% in adjusted earnings per share. With these macroeconomic factors and industry drivers in place, we knew we needed to find the most fundamentally solid company within the trucking industry for our growth portfolio. That is when we encountered an ideal investment scenario with Swift Transportation Company. Behind me, Swift has a trailing PE of 20.54, an estimated 4PE of 14.39, indicating a growth in earnings of about 42.70%. Another metric we use when calculating growth for our holdings moving forward, as well as undervaluation, is the PEG ratio. The PEG formula is simply PE over growth. In its simplest form, the more growth the company possesses, or the higher the denominator's value, the lower the PEG ratio will be. On the table behind me, Swift's PEG ratio is significantly lower than both Old Dominion Freight, a direct competitor, as well as the industry average. Another ratio we used to examine whether Swift was overvalued was the price-to-free cash flow ratio. Generally, the higher this ratio, the more expensive a company is considered towards its intrinsic value. As you can see, Swift has a lower PE convert, sorry, excuse me, price-to-free cash flow ratio converts to a zero competitor and industry average. We also recognize that Swift was historically volatile, as indicated by the beta you see behind you. Considering the factors that we just mentioned, we still saw as a strong investment opportunity and hedged against its volatility through appropriate weightings. As mentioned earlier, these appropriate weightings for each holding were a crucial part of our fund's success. The concluding factor on our bullish outlook towards Swift Transportation Company is the higher return on equity, which measures our company's profitability. As you can see, it blow away its competitor and its industry average. Swift was able to post this impressive return on equity despite the lack in return on assets due to solid growth in revenue and earnings per share as demonstrated on these graphs. From these graphs, you can determine that there is a steady upward trend. Now, Swift's lagging return on assets is the product of increased investment in their dedicated business segment. This business segment is the largest growth driver for all trucking companies. As you can see in the graph behind each of the left, this increased investment paid off greatly. As you see great year-over-year growth in the segment's revenues as well as operating margins. We are further encouraged by Swift's increasing asset turnover ratio as this shows us they're beginning to utilize their assets more efficiently by generating more revenue per dollar of assets. Due to our top-down and fundamental analysis performed by the Swift Transportation Company, we find it to be the best company to invest in within its world acquisition industry due to our given investment objective. But now, I would like to invite Jacob and Kagan to give you another example of the fundamental stone company we hold in our portfolio. As mentioned earlier, we revised the income statement, the balance sheet, as well as the statement of cash flows. Behind me is Akamai Technologies, a company that provides services for both accelerating and improving the delivery of content and applications through the internet. Another key step of financial analysis is looking at trends. Behind me is Akamai's gross margin, operating margin, and profit margin, which all three can be located on a company's income statement. In the chart, it shows that Akamai displays strong, positive trends in all three of these, relating in fact to a company's efficiency and profitability. Now, as Doc always reminds us, all roads lead back to cash flows because they can never lie. Akamai is a strong example of this because they have solid cash flows even though they're in a sector that is both highly volatile and highly innovative. In fact, their free cash flows has increased by a total of 85% year over year since 2010. Akamai also saw a significant increase in their cash from financing activities, which went from negative $297 million at the end of 2010 to a positive $436 million by the end of 2014. This represents a growth of 268%. Now, Akamai was able to do this by issuing $500 million worth of convertible bonds at the beginning of 2014, which were used for both a $67 million share repurchase as well as a $370 million acquisition of Prolexic. And not only do they have strong free cash flows and strong cash financing activities, they also have strong cash from operating activities. This has increased in total 63.5% year over year since 2010. All three of these cash flows show that the company is maintaining a strong steady stream of revenue. Now, combined with their internal financial strength, they also have many catalysts that will continue to drive this company in the future. It's because of this that we felt it was not only a solid investment, but a perfect match for our portfolio. I'd now like to invite up Scott and Alex to discuss a company with behavioral analysis. One of the hottest stocks of the semester for us was Impact's Laboratories. In our holding period it posted a very strong price appreciation of 6.5%. Impact's is a technology-based specialty pharmaceutical company that produces both generic and branded drugs in the U.S. and abroad. Now Impact's is a company that is poised for growth moving forward. And one of the growth catalysts that we believe will drive their stock price further is the upcoming release of their first internally developed and branded drugs, Rydery. Rydery is a drug used to treat the harsh conditions of Parkinson's disease. This drug, which received FDA approval in January, has made huge strides in both the treatment and therapies of this disease. Rydery offers an extended release treatment in order to cut down on the time that the symptoms are not adequately controlled. Since Impact's released Rydery in its soft launch it has gained 2% market share within the United States. In just three short weeks it has been able to consistently increase its domestic prescriptions and compete with the big names such as Tivas as-elect. Now, if they can capture just 10% of the existing market share within the United States, analysts predict it will generate $160 million in annual sales which will add 90 to 95 cents of sustainable EPS. Rydery's full launch is next quarter and we believe that they will continue these trends of gaining market share and that Rydery will become the top drug of treating Parkinson's disease moving forward. And due to Medicare provisions and the nature of the healthcare sector overall, we have seen a lot of consolidation within this industry and we expect this to continue. And although Impact has aggressively been making acquisitions in the recent years its $3 billion market cap makes it a very attractive company to potentially be acquired in the near future. Now Scott brings up a great point but even if Impact is not acquired this company will stand strong on its own. After calculating the difference in its PE spread we realize that this company has a potential of 63% growth moving forward. Impact has a very strong pipeline a diverse product portfolio and as you can see in the chart behind me is backed by impressive fundamental ratios ensuring that this growth moving forward is sustainable. To discuss another example of behavioral analysis I would now like to invite up Kagan and Jacob. To further emphasize behavioral analysis we'd like to talk to you about how news can affect a company's stock price. However it must be noted that you cannot purchase a company solely based on behavioral analysis. It must also be backed up by strong fundamentals such as Apple. As you can see in the screen behind me Apple displays a healthy spread between their PE trailing and PE forward which represents growth in earnings. Apple also has an ROE that is well above their competitor in industry average as well as displaying a peg that is below one which represents slight undervaluation. Now after establishing that they're strong fundamentally we then look at the many catalysts that will continue to drive this company through the year Apple is one of the most talked about companies in early 2015 with the release of their iPhone 6 and 6 Plus as well as the recent release of their Apple Watch. Because Apple is consistently in the media this provided a stream of growth catalysts for the company. One such example of this is on February 10th when Apple announced that it reached a $700 billion market cap signifying the largest market cap any domestic company had ever reached before. This resulted in a 9% price appreciation over the next two weeks. Another example is on the 14th of April when Apple recently announced an acquired company called Lynx. Lynx develops multi aperture camera lenses for mobile platforms such as smartphones. This is important for Apple because now they can develop this in-house for their products which not only cuts costs but hurts companies such as Sony which is one of the primary producers of these camera lenses. This was important for two reasons. One it showed that Apple was willing to spend the immense amount of cash it had on hand to inorganically grow. And two it showed that Apple is already creating a supply for tomorrow's demand. Another example is when they recently announced that they are spending Apple pay to Canada coming this November. This is huge because this is the first expansion outside the United States for this new mobile payment solution. Apple is currently in talks with six Canadian banks that make up 90% of all bank accounts in the entire country. This announcement came on Friday, April 17th and in aftermarket trading Apple is up nearly 2.5%. Now that we have shown you a few examples of how news can affect the stock's price and Kyle to discuss our three technical triggers. We focus on three main technical indicators such as RSI, statistics and MACD. MACD is the convergence or divergence of two moving averages, a short term line and a long term line. When the short term line crosses the long term line from below that is a bullish signal indicating to us that the asset at hand could experience an upward price within the upcoming future. RSI or the Relative Strength Index measures the magnitude of price movement. RSI falls below 30, it shows the stock is oversold but if it is greater than 70 it shows the stock is overbought. Stochastic also measures the stock is oversold or overbought over the water from 20 and 80. There is no better illustration of technical analysis than buying cheap and watching it grow. Now that's growth. Now we use technical analysis within most of our trades but one in particular was our momentum play with Pandora. Now this was a great example of when we capitalized on an early trend, bought cheap and saw significant growth. When looking at Pandora we noticed a trend change as the price began to bottom out and began to rise and this was marked by technical indicators located behind me. Now we use technical analysis such as MACD to determine the best opportunity for us to buy. Now as you can see on the chart behind me that on March 27th the short term line crossed the long term line from below presenting us with the optimal opportunity for us to buy. We bought Pandora for $16.16 and on April 8th we sold for $17.18 which was about a 6% gain. We hold about 5% cash on hand which enables us to execute momentum trades in earning place. In conclusion this was a successful momentum trade backed by technicals which allowed us to secure substantial gains. Also this is just one of the many ways we here at the cafe create returns as well as maintain a successful portfolio. Now we're going to invite Lorenzo and we're going to discuss another technical analysis company. One of our holdings that had their solid fundamentals and behavior backed by promising technicals was the Walt Disney Company. Disney began demonstrating bullish trend channels from late January all the way into this day. In technical analysis trend channels are compromised of a lower tier called support level and an upper tier referred to as resistance level. As you can see from the initial trend channel Disney stock price traded between the support and the resistance level. As you can see behind me on January 30th Disney bottomed out hitting their level of support and saw a subsequent rebound in the following day. At Disney's level of support there was the potential for at least a 6.8% upside as indicated by the green arrow behind me. On February 3rd the company released and surprised even the most bullish outlooks for their earnings. This led to a portfolio seeing a 6.87% upside with the price breaking through the resistance level on the back of a serious increase in volume. This massive influx in trading volume supported our prediction that Disney would continue trading through these newly formed trend channels. But after about a month passed by we were proving correct as Disney continued to as I said before trade between the new trend channels. This upward trending channels are sustainable moving forward as demonstrated by the new levels of support and resistance being tested by the price before time without it breaking through. Moving forward we see Disney having at least a 2.66% upside as indicated by the room for a price level rally below the level of resistance. I would now like to invite up Scott and Kagan to give a little insight about diversification as well as our portfolio's back tested performance. Now how do we construct a portfolio such as this? It's through proper diversification. To exemplify this we use what's called a correlation matrix. Behind me is our year to date and 228 correlation matrices. The ideal green yellow companies either have negative correlation or very minimal correlation whereas the red represents companies that move in tandem with one another. Now ideally you want about 60% of your holdings up on any given day. What you don't want is all of your holdings up on any given day because they could all be down the next. In addition to making sure our holdings are not directly correlated we also incorporate Markowitz's portfolio theory into our construction. This method allows for minimum variance portfolios spread across industries and sectors in order to maximize returns while minimizing risks. But because this is a growth portfolio we ultimately decided not to lie directly on the MVP. Instead we elected to keep our current weightings and this is why we have been so successful. Now lastly we perform what's called back testing. This is where we take our current portfolio as it is and see how it would have performed in previous years. This allows us to see how efficient our portfolio really is. Now we calculate the beta standard deviations as well as the way to returns before that time frame. Now through back testing we are able to have greater returns while also minimizing risk both systematically and unsystematically since 2012. Now we know we can't base the future success of this portfolio on the past but at least we have a little reaffirmation and confirmation that we are doing something right. Believe it or not if we were to change the weightings for the weighting scheme we would have an entirely different return and alpha. We have just justified why this portfolio will be successful not only through proper diversification but through performance both present and historical. Now we also take a qualitative standpoint which Doc has instilled into us. It's our job to present all the scenarios that will make sure our fund is not only successful but protected against downside risks. We must always plan for the worst and hope for the best. Now to talk about this more, I'd like to bring up Jake, Tom, Alex, and Alenzo. We can talk about the future forecast and success of our portfolio. As analysts we are now able to form our own opinions regarding global factors, US markets as well as our portfolio's future success. This semester we focused on a few key factors. The continued low interest rate environment, the dramatic decrease in oil prices as well as many health care provisions. Next economic data release since mid-February forced the Fed to push back the anticipated interest rate hike. We predict this hike won't happen until late 2015 or even possibly early 2016. Poor jobless claims, excuse me, in combination with retail spending have shown the Fed the economy is not where they would like it to be before the anticipated interest rate hike. Our portfolio was positioned perfectly to benefit from any environment within the upcoming year. If interest rates remain unchanged throughout the summer, that would be optimal for our portfolio as it would continue the bullish rung within the market. However, if the Fed does decide to raise rates as early as June of this summer, it will cause turmoil in the markets. Fortunately for our portfolio, we understand that the financial sector would greatly benefit from a rate hike, which is why we have such a heavy weighting in this sector. Some of our holdings within the financial sector include Morgan Stanley, Visa, and Intercontinental Exchange. Another area of focus for us in the beginning of the semester was the drop in oil prices and the sustained low prices we saw so far this year. This was created through a surplus, which was then created by an increase in production levels from the United States as well as the Middle East. If oil prices remain low throughout next year, our fund will not be hurt due to this lagging sector as we do not have any holdings within energy. If you look at this chart behind me, this illustrates a 90-day future forecast of oil prices. Oil has the potential to reach around $67 a barrel, and if that's the case and we see signs of oil rising, we will act accordingly to ensure that we don't miss out on any potential profits within the energy sector. The health care sector played a tremendous role in our fund success thus far. With proposed Medicare provisions in mind, we decided as a group to have a substantial weighting within the health care sector. However, we ultimately decided to underweight it as we felt a bubble was forming on the back of the biotech industry. According to Obama's recent budget proposal, nearly 31% of the proposed savings are directly related to prescription drugs. Also, they have increased the co-payments for low-level income individuals making the generic market that much more attractive. Biologics dramatically decreased the lifespan of patents from 12 years to 7, again bolstering the generic market. For this reason, we looked at a few specific industries within health care that we believe will drive the sector as well as our portfolio over the upcoming year. First, we looked at biotechnology with their holding Gilead, pharmaceuticals with their holding impacts, medical devices with their holding Boston Sciences, and finally, retail pharmaceuticals with their holding CVS. With that said, we chose to allocate 13% of our portfolio to the health care sector. As Tom mentioned earlier, this strategy has paid off immensely. Our health care holdings have yielded a nearly 28% return compared to the spider ETF of health care that has only returned 7.8%. Our health care holdings have yielded a tremendous return due to the faster sentiment being up due to the health care sector. After concluding our economic outlook at the beginning of the semester, due to these constantly changing conditions, we were required to actively manage our portfolio to ensure its future success. At this time to talk about some of our experiences within the cafe, I would like to invite up Kyle, Zach, Amira, and Kyle. Before I take this presentation, we would now like to take this time to really show you how far we have come together as a group. Before coming into cafe, we knew it was going to be hard and a long journey, but worthwhile at the end. What we did not know was how truly how physically and mentally demanding the cafe program really is. On day one, Doc makes it clear it doesn't teach students, it trains analysts. Because cafe is more than a class, it is a job. We can take many lessons from cafe, from analyzing equity markets to constructing a portfolio to actively managing a fund. But another important lesson we can truly take away with us wherever we go is always ask yourself the question why. Docs is the silliest question in our minds since day one. Every day no matter what question concerning the market or company, we would always ask why. Why is the market moving the way it is? We learned that once you can answer the question why, you can truly understand the meaning behind how everything works. By doing so, our critical thinking improved tenfold giving us the opportunity to apply this crisis skill wherever life takes us. Another one of the many lessons to take away from cafe is to always trust yourself. Doc constantly tries to make us doubt ourselves, but he does this in order to test our knowledge and for us to prove him wrong. As long as you do your due diligence and find out every core aspect of every company, you have the ability to defend your beliefs. With this in mind, it is always important to do a good job the first time around because if you do not, it will always take twice as much time and effort to redo the same task. An example of this is when we had to do our company pitches. We didn't know what was expected of us. So we had to redo them multiple times until we reached perfection. With that said, it is essential to take pride in your effort because the amount of effort you put into it is always the result. One of the most important things we can take away from cafe this semester is what are deadlines? After working long hours and seeing the clock start at 4am, we realized there was no such thing as soft deadlines. We knew the difference between soft and hard deadline by how quickly Doc responded to us. There was one time that he expected something from us due at 4am that arrived seconds to minutes late. He had a chat with us and after that we knew that there is no such thing as a soft deadline in the business world. Now that we have taken you through our top down investment approach and some of the lessons we have learned from the cafe program, I would like to invite Alex to conclude our presentation. The cafe program truly has turned the students that stand before you into analysts ready for industry. Now typically the way this program works, new student fund managers liquidate the growth portfolio entirely and start from scratch. However next semester that process is not necessary. Why? Because the portfolio that we constructed passes the sleep test. And by that, I mean you can check on it in the winter and even next spring and it will continue to outperform the market on a risk adjusted basis. So now that you all have a pretty good understanding as to what we do in the cafe and the roots for our success, please note that this is only half of what we do. I would now like to invite up Guthrie, Susan and Molly to briefly discuss our National Championship Value Fund. Thank you Alex. So many of you may have heard our value fund won two national champions back in the spring of 2014. So now I'd like to take a little bit of time to talk about our successes over the academic year of 2014 and the beginning of 2015 as well as some of the fun things we had also in that time. One of the best opportunities that we had, that was an absolute blast, was the opportunity to go to Tokyo Japan. I'd like to take this opportunity to express our appreciation to Mr. Hans Christensen, the CEO of MJX Assets Management Management. You have been a great support and great sponsor to us and you have given us the chance of a lifetime to not only travel to Japan to learn about that culture and the economy, but also to present our portfolio methodology in front of industry professionals specifically at Mizuho Financials and the Nikai Press. We also presented our portfolio methodology to students and faculty members at the graduate level at University of Tokyo. Coming back from the trip, we learned a tremendous amount of knowledge from what we saw and also from what we learned from the audience feedback. So this semester we got the opportunity to go to Hong Kong, which was just like Tokyo a great opportunity. We were able to attend seminars at the Hong Kong Monetary Authority as well as at the Hong Kong Exchange. We even got the opportunity to present at City University to their graduate students and their faculty there and get their kind of feedback on what our portfolio methodology was and what they kind of told us about theirs and it was a really good way to interact between the cultures and get feedback on their economy directly from them because they're the ones living in it and we're just kind of trying to view it from a computer and kind of get an insight in on it but they were really helpful. So now I'd like to talk about what we call March Madness where all these student fund managers lost hours of sleep we gained something of frequent flyer miles. So from March 4th until March 11th we spent in Hong Kong absolutely fantastic opportunity. We had six days to turn around and put together a presentation for the Quinnipiac Game Form which last spring we were able to take a national championship home. Once there we worked hard, we were able to perform for the school and then we got back on the bus and we came back up school. We had four days following that and then we got on a plane and we went up to Michigan in Detroit to compete on the national level at the engage competition. So like I said quick turn around but it was very hectic for us. No, the Quinnipiac Game Form was a great experience. We were able to attend several seminars not only on economic activities but also market conditions and investment strategies. We participated as well in the post award presentation where we presented our portfolio methodology to students and faculty members of other programs along 150 universities and colleges participated in the competition. We placed six out of that under the undergraduate growth strategy category. So then we went to the Engage Symposium which is the first time ever we got to attend seminars again like at Quinnipiac as well as do the portfolio methodology competition and present our post award. What was really cool about this one is we got to do a stock fish competition and get real feedback from judges and this was the first time it ever been done. It kind of showed that we weren't just more of like a quantitative thing but we also were able to do a qualitative and talk with people and show people. We didn't just sit in front of computers and just kind of screen things. We actually did our research we were able to show them our methodology and how we actually went about selecting a stock. Now as you saw during our construction process of our portfolio the student fund manager is so well presented. Doc teach us to be very quantitative in nature so we know all the numbers we know what's going into our portfolio. This stock fish competition gave us a really unique opportunity to be able to explore the qualitative stock. The qualitative side and kind of take accountability for our own solo performance as when we pitched on the intercontinental exchange at Detroit we were able to pitch our stock and show our own program off to television personalities like Pete Najarian and also multi-billion dollar asset management members. Now what was great about this stock fish competition as Molly and Gabrielle mentioned is the judges feedback to us. They have let us know that we have done something right to be able to do in depth analysis and gain in depth knowledge are not only the company's strong potentials but also the risks associated with them both quantitatively and qualitatively. I also wanted to mention that being able to run among the top programs in the nation we placed second next to the home team Michigan State University Aside from that we also participated in the poster board presentation as we did in Quinnipiac in foreign and we placed second out of 140 universities that participated in the competition. For any questions or comments you guys can give. Congratulations you guys did a great job so did you guys on a wonderful presentation. Debbie said you guys touched base on ratings in your portfolio and how performance would have been different had you had different ratings for each position. Talk about the caps that you put on individual equities within those certain sectors that you may have overweated. If there were caps I guess that would be sorry. So we base our ratings of each company based on how volatile we think it is as well as the sector itself. For example with technology I'll go into a few specific examples Apple is a much more less volatile company as opposed to some of our other buildings so it deserves a greater rating while a more volatile company will get a smaller rating as to dramatically affect our company if it were to have a negative reaction to the stock market. Thank you. So with a company like Apple someone pitched the idea how did you guys determine whether or not as a group you wanted to purchase that stock or not have enough chances. We did an in-depth stock pitch. We had actually a full weekend where all we did that weekend was spend a lot of time with each other. Pitch stock breakers a great time. A little bit of sleep but it was definitely a good time. So we actually had a ranking system where we would rank one through ten being strong by one being I don't want to be anywhere near this holding. Fortunately none of those were ever brought to our attention and we'd also have comments and feedback from each member justifying whether or not it would be a good purchase. So with that in mind if we got the final score between 7.5 and 8 we felt confident enough in order to go in and purchase the stock according to the ratings we had set aside with the company into that sector. How did you guys come to the conclusion of running a growth portfolio versus a value portfolio. What made you decide you wanted to do top down analysis versus bottom up. Top down analysis it's crucial we feel it's crucial to understand what's going on around the world because markets are global by nature they are all connected and if you first don't understand that there's really nowhere to start. So we use the top down analysis to figure out where we want to start with our investments and then we go from there find the right sectors that we want to put them in then from there find the right industries and if we kind of find all those things there's no reason we can't find good companies in those industries that will change in the future. To that we actually hope to we will money portfolio the growth fund and the value fund. So we do both sides. So like I mentioned in the future success these conditions are constantly changing so the interest rate could change in 6 months it could change in 12 months just like oil prices so these constantly changing conditions require us to actively manage it. Now we would love to see all of our companies still in there in the fall but we understand that you know this is real money it's not just about our ego it's about managing wealth. With the biotech sector being so volatile how do you find the next success story are you continually looking to see what metrics should get who would be have the next new drug who would be the next target of acquisition so we understand that this is a very volatile industry and with having a growth objective we wanted to be a part of that but we did it in an intelligent manner. So what we did was we found the most fundamentally strong company and then what from there and that was what they're holding Gilead. So as of now it's been performing great and there's no need to get rid of it but obviously we actively managed this portfolio and if any news were to come out we would act accordingly. Again great presentation. I just wanted to talk a little bit about sweets. I mean obviously you didn't have the same picks as you did at the beginning of the semester and things have changed and we've talked a little bit about that. Every time when we come into cafe we see the past growth and value funds. We see the companies that they hold and after that we go through each company we see how the economy has been performing and if the economy has been performing in a bad way towards the company we hold we find the best we possible with strong fundamentals and good behaviors to put it in place. And Doc also challenges us to find sweeps and you said that if one of us finds a sweep we can actually skip it all night doing good to sleep that night. It's kind of a little bit of a motivation for us to find a way. If I may add as well I really have to give it to these guys but it's not just bringing 15 to 20 companies to each sector to bring it. It's bringing 15 to 20 on top of doing the companies that we already hold as well. So it's an in-depth analysis of our current holdings as well to identify strength. See if you want to hold on to it, if it's over value, if it's fully value if we can still expect growth and at the same time bring our new opportunities and then we both together collectively. Because you did the weekend and had 7's, 8's, 9's and 10's what happened when an 8 didn't turn out? What was the decision to actually, I will say as an analyst when you love a company selling is the hardest thing you do and it is the most important. You can sleep at night, I am guarantee you the market isn't going to sleep at night. It is getting out whether it's stock loss, having triggers in place referred to as key performance indicators. What was your strategy giving, what was the best example you can give of the worst investment? Good question, great question. Never judge a question, it was just a question. Alright, so we had, we initially pitched Green Mountain Coffee Roasters, I felt too. So we pitched them, we felt that everything going around them, behaviorally it was perfect, their departments were set up perfectly and then we kind of moved into it, they got poor results on their one cup, the version 2.0 release. They got poor results from that as well as some other difficult indicators from the commodity pricing of coffee. So unfortunately they stopped out because we had set a 10% stop loss on them, so we avoided any more risk that we could have taken off with that, so we definitely placed the trend in stop losses to make sure that we don't. Do you have much stop losses across the board? No, we base them based off of at least greater than two standard deviations from the mean of the company's standard deviation. So that one was about 10% based off of that. In the last 10 years ago, we were only allowed to purchase stocks at that point. What do you guys allow to purchase now? Is it still just stocks? Do you purchase futures, options, mutual funds? What do you want to do? Coach, I don't like playing me off. I was going to say that as of now we only focus in on equities. We don't really like to go into futures and derivatives and all that really complicated stuff. We stick more to the equities so we make sure that they're perfect for a board boil. With that being said as well, we've had a much higher analysis on some of the other different asset classes to see how some of our holdings might work as well. One of the oil slides that we had had an open interest graph on it to show movement within derivatives to see specific calls versus puts, so within that derivatives trading we can engage investor sentiment and how it might judge or move our equities. How do you all engage in momentum plays? Have you guys ever played earnings? Did the selection process change or did you focus more on behavioral or did you stick to your guns with fundamentals? We made, I think it was three, total momentum plays. The most important one was Pandora and that was strictly based on behaviors as well as technical sessions. They strictly based on but for the most part we don't like to just throw around money because like we mentioned earlier, although we are at growth and we like seeing growth we are wealth management and we have a fiduciary responsibility to dock in this program to not lose money. So yes we make a few momentum plays that we are sure will trade instead of profit. Hello. How do you guys decide to sell winners? You've had target prices and what's the rationale there? So a lot of what we do is we look at the fundamentals of the company. Is it going to maintain its strength? Are there still growth catalysts, positive growth catalysts or are there more negative growth catalysts? Then we look at the charts. So after doing those two fundamental behavioral analysis, we decide if we're going to sell it then we'll look at the technical charts and find the optimal time to sell based off of those three technical triggers that we had. If we're not then we'll just continue to hold it if we believe that there's still room for growth within the company. Some international equities have done well. Europe especially some have not like Latin America. In your group sessions did you ever explore some of the assumptions you made earlier and either re-evaluate or say I should have perhaps widened? Well in regard to Europe we did see obviously saw the quantitative easing program starting. Equity markets used to respond really well to that but on the other side there's a lot of political turmoil with Russia taking from Crimea and also their monopolization of the oil going into Europe. We felt that was a political risk that we didn't want to take on. And also Greece who keeps coming up in the news pretty much every week about how they're about to default on their debt. That's something else that we're not risk takers and we didn't want to have that extra risk in our equity markets. What about a hindsight looking at the DAX and seeing how well it's done or the cap or the FTSE? Are you looking at those indices and saying darn it? Or are you saying we're glad we didn't take on that risk? I think that a lot of the way that we were able to have such success with our portfolio as well was kind of diversifying across some of the growth opportunities but also smart and more safe kind of opportunities. We identified an extreme amount of falling and volatility where the DAX has run and done extremely well but it kind of the pockets of more volatile or taking on some undue risk that we weren't prepared to put in. Well on those lines, I'm curious about energy was there ever a point where you guys were considering adding any kind of energy exposure? Certain, maybe midstream or something like that with you don't have as much modernity exposure? Yes, well as far as midstream we're not allowed to hold MLPs which are obviously part of the best returning companies within energy. And we have struggled with putting energy in throughout the semester but as we've said many times like we're all about preserving risk and the large risk attributed to energy within itself we thought we could stay out of at this period in time but moving forward within the summer you can definitely see us adding an energy company within our fund. And we definitely prepared for a lower oil scenario with our utilities waiting to ensure that the companies that are going to benefit the most from low oil is utilities because it's service they're providing through that cheap oil they're able to take. So that's kind of where we kind of sat on that with energy utilities. I'm so far over my head. I would just like to say I continue to be enormously proud of this program and I would like to leave the audience and give these people a round of applause. I would like to also applaud your efforts, you guys are just amazing and I'd also like to thank Dr. Michael Melton for all of the efforts I know that he exerts on this program 24-7 pretty much 365 days a year. So thank you for your reception. Following this right outside in the area just outside this room the students will be with us. Maybe you can give us some stock tips while they're still here. I'm ready to write them a check as I usually am after I've heard from them. So we hope you can please stay for a little while and join us in some refreshments outside. Thank you again all for coming. We hope we will see you with the next presentation. Thank you for your time and your support. Especially as Christensen, who has been a great supporter of as Susan said of the cafe program. So thank you again.