The Archway Investment Fund Semi Annual Report, Fall 2014 Bryant University, Archway Investment Fund

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The Archway Investment Fund Semi Annual Report, Fall 2014 Bryant University, Archway Investment Fund Bryant University DigitalCommons@Bryant University Archway Investment Fund Archway Investment Fund Fall 2014 The Archway Investment Fund Semi Annual Report, Fall 2014 Bryant University, Archway Investment Fund Follow this and additional works at: http://digitalcommons.bryant.edu/archway_investment Part of the Finance and Financial Management Commons Recommended Citation Bryant University, Archway Investment Fund, "The Archway Investment Fund Semi Annual Report, Fall 2014" (2014). Archway Investment Fund. Paper 20. http://digitalcommons.bryant.edu/archway_investment/20 This Report is brought to you for free and open access by the Archway Investment Fund at DigitalCommons@Bryant University. It has been accepted for inclusion in Archway Investment Fund by an authorized administrator of DigitalCommons@Bryant University. For more information, please contact [email protected]. The Archway Investment Fund Semi-Annual Report • fall 2014 ARCHWAY INVESTMENT FUND The archway investment fund was established in Portfolio Management, in which students take on portfolio fall 2005 to provide Bryant University students with the management responsibilities and work with the Securities opportunity to manage real-world investments following Analysts to improve the future growth of the Fund. In principles used by investment managers around the globe. addition to managing the Fund, Portfolio Managers, hav- Students must apply for the two-part course and inter- ing just been through the course, mentor the Securities view for a position in the class, competing against other Analysts in the stock selection process. At semester’s students, much like the job search process. In the program, end, Portfolio Managers present their work to a panel of which is led by Professor David Louton, students develop professionals from the investments industry. the necessary skills and investment protocols to manage Through hands-on exposure to the best-of-class invest- more than $900,000 in assets. ment practices in the financial world, Bryant students gain The class is held in the C.V. Starr Financial Markets an important competitive advantage in the market place Center (FMC) in the George E. Bello Center for Informa- and establish the foundation for leadership throughout tion and Technology. The room, designed specifically for their careers. The Fund also hosts an annual conference, financial services students, receives real-time news and the Financial Services Forum, where regionally and nation- market data feeds. ally respected financial experts share their views on the developing financial world. Graduates know how well this Students begin the program as Securities Analysts, where program prepared them for their careers and support its they learn how to navigate Factset Research Systems continued success financially and by sharing knowledge and other resources available in the FMC to aid in con- with the classes as guest lecturers. ducting securities analysis and make informed stock recommendations. The second course in the program is TABLE OF CONTENTS Investment Advisory Board ........................ 2 Healthcare ................................ 16 Thoughts from the Professors ...................... 2 Industrials................................. 18 Portfolio Managers .............................. 4 Technology................................ 20 Securities Analysts ............................... 5 Historical Performance........................... 22 Letter from Executive Committee ................... 6 Current Archway Holdings........................ 24 Macroeconomic Outlook.......................... 7 Trades ....................................... 25 Investment Strategy.............................. 8 Summary of Sector Performance ................... 27 Portfolio Snapshot ............................... 9 Statement of Operations ......................... 28 Sector Overviews............................... 10 Administrative Committees ....................... 29 Consumer Staples and Discretionary............. 10 Friends of the Archway Investment Fund............. 32 Energy, Materials, Utilities..................... 12 Special Thanks...................... inside back cover Financials ................................. 14 THOUGHTS FROM THE PROFESSORS Peter R. Phillips Securities Analysis I’ve had the pleasure and honor to be involved with the Archway Investment Fund in some capacity since near its beginning— from guest speaker, mentor, board member, and now as instructor for Finance 450-Securities Analysis. Being an instructor is by far the most challenging role I have played, but also the most rewarding. Peter R. Phillips, CFA The Challenge The Reward I have the time equivalent of about one work week to teach Finance 450 students all they need to know about how to research, At the start of the semester in the front of the classroom I look analyze, and develop an investment opinion on a company and its out at twenty-eight Finance 450 students and wonder to myself stock. In the ‘real world’ developing this skill set can take months how this will turn out. It typically starts out a little slow—some or even years—and that is following a formal finance education. blank stares and me wondering whether my lesson was well received—but as I read the students’ first research assignment As a result, I have no other option than to put forward an and certainly by the end of the semester, I am always pleasantly aggressive syllabus and semester timeline. We start the semester surprised by the students’ quality of work and development into with industry analysis, move quickly towards individual securi- analysts. However, maybe it should not come as a ‘surprise’. ties analysis, and finish with student stock pitch presentations. After all, not every student gets the opportunity to participate in We spend quite a bit of time developing both the quantitative the Archway Fund. Archway students distinguished themselves and qualitative skills needed in the analysis process—and we prior to enrolling in Finance 450—and continue on to do so in also work on how to think like an analyst and have confidence in Finance 454 and beyond Bryant. expressing investment opinions. INVESTMENT ADVISORY BOARD Rodney Baillargeon ’76 Jonathan Burke ’03 J. Steven Cowen ’69 Andrew Goldberg ’03 Senior Vice President, Senior Investment Officer Owner and Principal Executive Director, Portfolio Manager Amica Mutual Insurance Co. Cowen & Associates Global Market Strategist Bank of America J.P. Morgan Todd Carey ’00 mba Joseph Fazzino ’02 Asset Management Henry Becker ’94 Senior Vice President Senior Manager, Managing Director UBS Financial Services, Inc. Pension Investments Kristen Goldberg ’05 Hayman Capital Private Wealth Management United Technologies M.A. Candidate in Education Management, LP University of London, U.K. Robert Covino ’92 Michael Fisher ’67 Nicholas Bohnsack ’00 President Managing Director Frank Guest ’06 President and COO SSARIS Advisors (Retired) Senior Financial Analyst Strategas Securities Barclays Global Investors Hartford Investment Management Company 2 David Louton Portfolio Management Like all previous semesters, this semester had its share of ups and downs. But as always, the market has been a great teaching assistant. We started the Archway Investment Fund in the Fall of 2005 and it has been a full and very interesting 10 years—or will be by the end of the Spring semester. Although the person- alities have varied, sometimes quite radically, from semester to David Louton, Ph.D. semester, the market has never failed to deliver a full measure of value as our living case study and the centerpiece of the Archway Investment Fund courses. Each semester, aided and abetted by from their own class; ii) a desire to connect with students who policy makers, regulators, and a rich cast of characters from the graduated in other years and learn what they are doing; and iii) a world of investing, the market has contrived ways to bless and burn desire to provide investment guidance or career assistance to the the Archway Investment Fund and its student managers. It has current managers of the Fund. The consistency of the level of always provided an abundance of opportunities to see where invest- interest and commitment has been deeply gratifying and I take it ment theory works, where it seems to break down, and where there as an indication that it is time to put in place a more structured just doesn’t seem to be any road map. Students have certainly gained format for alumni to volunteer as guest speakers, mentors, or in technical knowledge from the experience of managing the Archway other capacities. In the meantime, with the 10 year anniversary Investment Fund, but they have also gained judgment and a of the Archway Investment Fund approaching, we would like to healthy degree of respect for the complexities of a market that always plan a reunion of some sort. If you could help with the planning has surprises in store. Although the Fund has sometimes delivered of such an event, or contacting other members of your class, weak investment returns, it has consistently produced very strong please contact me. I would be very grateful for your assistance. returns in the form of the learning and development experience We will keep you posted as plans develop. that it has provided for everyone involved—myself included. In Thank you for your interest in the Archway Investment Fund. If you that sense, this semester has been no different from past semesters. have questions or suggestions, please email archwayfund@bryant.
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