Student Managed Investment Fund

We want to welcome you and wish you the best of luck this year!

Samantha Camden ’20 pitched Cisco Systems (NASDAQ: CSCO) on February 24th, 2020. Cisco, which has dominated the market for internet protocol-based networking equipment, makes security devices, internet conferencing systems and other networking equipment for businesses and government agencies. The company has successfully identified and innovated in key secular growth areas in the upcoming 4-5 years, including 5G & Wi-Fi 6, security solutions, and networking for data and applications in multi-cloud environments. As part of Cisco’s capital allocation strategy, the company intends to return a minimum of 50% of its free cash flow annually to shareholders through cash dividends and repurchases of common stock. In its most recent quarterly filing, Cisco delivered on business transition goal, generating 72% of software revenues from subscriptions. The class voted to buy 900 shares of CSCO and sell 190 shares of the XLK. 

Matt Davis 20’ pitched T-Mobile (TMUS) to the Student Managed Investment Fund on February 24, 2020. T-Mobile provides wireless voice and data communication services to more than 81 million customers and is the third largest wireless carrier in the United States. T-Mobile prides itself in being an industry disruptor by offering exceptional services and products at lower prices. They are poised to capitalize on the 5G revolution and continue to increase their market share in the wireless industry. The class voted to sell a covered call on AT&T (T) and sell 200 shares of Verizon (VZ), to buy 155 shares of T-Mobile (TMUS).  

Liam Lawler ’20 pitched Delta Airlines (DAL) to the Monday section of the Student Managed Investment Fund on February 17th, 2020. Delta Airlines is one of the world’s largest passenger airlines, as it provides scheduled air transportation for passengers and cargo throughout the United States and the globe. Its 800-plus aircraft fleet serves more than 180 million customers each year in 300 destinations and 50 countries. In recent years, Delta has grown to be the world’s largest airline by total revenue. Delta’s exceptional customer service allows the company to grow brand loyalty and capitalize on unique product offerings. In addition, Delta has been able to grow geographically through strategic joint ventures with other airlines. Finally, Delta has a high free cash flow, relative to its competitors, which is allowing it to reinvest in long-term equipment and technology. The Student Managed Investment Fund voted to buy 270 shares of DAL and sell 150 shares of CSX. 

Michael Chen ’20 pitched Booking Holdings (BKNG) to the Monday section of the Student Managed Investment Fund on February 17th, 2020.  Booking Holdings is the world’s leading provider of online travel & related services, provided to consumers and local partners in more than 230 countries and territories through six primary brands: Booking.com, KAYAK, Priceline, Agoda, Rentalcars.com and OpenTable. The company has experienced an average 11.47% CAGR in revenue from 2014-2018 primarily through hotel accommodation services in Europe. It continues to invest in growing markets such as alternative accommodations and the Asia Pacific region. Through the recent acquisitions of OpenTable and FareHarbor, Booking Holdings is expanding with restaurant reservations and activities. These added offerings contribute to the company’s goal of becoming the “one-stop-shop” of travel. The class voted to buy 20 shares of BKNG and sell 600 shares of ELY. 

Logan Springer pitched TPI Composites to the Student Managed Investment Fund on February 3^rd, 2020. TPI Composites is an independent American wind blade manufacturer for wind turbines with manufacturing facilities in North America, Europe, and Asia. Currently the world has 580GW of wind capacity installed. In the next 10 years, the world is projected to add an additional 73GW of wind energy. The levelized cost of energy is continuing to downtrend, and now the marginal cost of wind energy is cheaper than additional gas and coal. The increased trend of turbine manufacturers outsourcing wind blades coupled with TPI Composites’ global manufacturing footprint will help the company take advantage of this tremendous growth in wind energy. Furthermore, with most active and passive flows entering into ESG / clean energy themed funds, TPI Composites should benefit from these flows. The class voted to purchase 1300 shares of TPI Composites and to sell completely out of XLE, Devon Energy, and Royal Dutch Shell.

John Romei ’20 pitched Duke Energy Corporation (DUK) to the Student Managed Investment Fund on February 3, 2020. Duke Energy provides electricity generation and distribution to 7.7 million customers and natural gas to over 1.6 million. Duke Energy operates primarily in 6 states in the Southeast and Midwest regions of The US. Since its inception in 1904, Duke Energy has provided utility services to the region driving economic and population growth, now shifting towards lower-emissions and renewable energy services. Management expects to continue steady growth to its high dividend payments and the company’s $37 Billion growth capital plan presents strong top line growth potential. The class voted to by 325 shares of Duke Energy and sell out entirely of the S&P 500 Utilities ETF SPDR (XLU) position of 235 shares. The remaining shares were purchased out of the portfolio’s money market holdings. 

Tyler Wincig ’20 pitched a Boeing (BA) add-on and put-onboarding strategy to the Student Managed Investment Fund on January 27th, 2020. Boeing is one of the world’s largest aerospace manufacturers. The company conducts business in four divisions: Commercial Airplanes, Defense Space and Security, Global Services, and Boeing Capital. Over the course of the past 18 months, Boeing has endured one of its worst economic and reputational stretches in its century long history. As a result of unfavorable events, most notably the two deadly Boeing 737 MAX crashes and the model’s subsequent worldwide grounding, Boeing’s share price has declined to the extent that the company has become undervalued. With a high probability that the 737 MAX grounding will be removed during the spring of 2020, Boeing’s insurmountable position in the aerospace industry, the health of Boeing’s backlog, Boeing’s new leadership, and the obstacles Airbus faces in terms of gaining more commercial aerospace market share, Boeing is in a position to recover from its mistakes and regain its title as the largest aircraft manufacturer in the world. On January 28th, 2020, the SMIF portfolio purchased 65 additional shares of Boeing at $315.00/share, and sold 1 BA 2/21/20 P325 for $16.74/share, funded by selling 300 shares of LUV at $57.21/share, 20 shares of SPY at $327.08/share, and 35 shares of XLI at $82.50/share.