Hi SMIF Alumni! The new SMIF class of 2016-2017 wanted to introduce ourselves and update you all on our progress thus far. If you would like to learn a little about the new class, please click on “Meet the Analysts” at the top of our blog page. We are already off to a great start! So far, the class has decided on its Tactical Benchmark Allocation of 87.5% Equity, 12.5% Fixed Income, and 0% Cash. In addition, we have finalized our sector allocations, displaying our views on the market as a whole. We are looking forward to a great year and much learning ahead. Please reach out if you have any questions or concerns to Charlotte Clegg (firstname.lastname@example.org) or Zach Matarazzo (email@example.com.)
Guest Speaker David Silver, Bucknell Class of 1997, visited the Student Managed Investment Fund (SMIF) on September 16, 2015. Silver has over 17 years of corporate tax and accounting experience, and he is currently a Partner at McGladrey’s tax practice. After graduating from Bucknell, he became a Tax Senior at Arthur Andersen. He was there for three years before joining Ernst & Young as a Tax Senior Manager, where he worked for eight years. In his current role at McGladrey, he provides audit, consulting, and tax solutions for clients. Silver has twice won McGladrey’s National Achievement Award for Relationships & Excellence (2010 and 2012). He spoke to the class that day about various aspects of the tax footnote in a company’s annual report.
The Student Managed Investment Fund (SMIF) decided to buy, hold, and sell several equities in its current portfolio after the second round of Accumulate, Hold, Sell (AHS) presentations on September 9, 2015. The class voted on the following investment decisions:
Hold: Allison Transmission, Anadarko Petroleum, Bed Bath & Beyond, Boston Properties, Celgene, Chevron, Cummins, Google, Halliburton, Johnson & Johnson, J.P. Morgan, Procter & Gamble
Buy: Apple (50 shares), Boeing (100 shares), Gilead (100 shares)
Sell: Deere (150 shares)
On September 23, 2014, the Bucknell Student Managed Investment Fund (SMIF) was pleased to welcome back Ryan Foreman, Bucknell Class of 2013, and a member of SMIF during the 2012-2013 academic year. Ryan now works for Lord Abbett as a regional consultant, and shared with the class some information about bond markets and recent trends in the industry. He also took the time to answer questions and interact individually with students.
On October 1, 2014, the Bucknell Student Managed Investment Fund (SMIF) was pleased to welcome Frank Schreiner, Bucknell Class of 1983, Daniel Greenberg, Bucknell Class of 2007, and Katrina Schmaltz, Bucknell Class of 2010. Mr. Schreiner is a Managing Director at BlackRock, the world’s largest asset manager. After graduating from Bucknell with a degree in economics, Mr. Schreiner went on to obtain his MBA at Rutgers Business School and is a CFA. In his current position, Mr. Schreiner leads a group of 13 Portfolio Managers, Associate Portfolio Managers, and Portfolio Specialists, with approximately $5 billion of discretionary assets under management. With Mr. Schreiner that day was Daniel Greenberg, a Bucknell graduate, SMIF alumnus and CFA, who is currently an Associate Portfolio Manager at BlackRock. Also with Mr. Schreiner that day was Katrina Schmaltz, another Bucknell graduate, SMIF alumnus, and CPA, who currently works at BlackRock as well.
On October 16, 2014, the Bucknell Student Managed Investment Fund (SMIF) was fortunate enough to host Gene Gorab, CEO and President of Greenfield Partners, and Bucknell Class of 1985. He spoke about his firm and how it functions as a real estate private equity operation, along with some of the factors that have made him so successful over the years. He also explained the current macroeconomic backdrop in the United States, and offered insights into the world of private equity.
On October 15, 2014, Caleb Smith gave the first pitch of the semester, with Anadarko Petroleum Corporation (APC). APC is an oil and gas exploration and production company that he felt was the best company in the field, would outperform the energy sector, and would be a great addition to the portfolio. Between 2009 and 2013, APC has been able to increase proven reserves and daily production levels, and over that same time period, has never had a reserve replacement ratio below 100 percent, something no other company in its peer group can say. APC’s combination of domestic plays here in the United States and internationally, mainly in Africa, set it up for continued success. Additionally, given the recent drop in oil prices, and how the macroeconomic environment is positioned currently in the later part of the mid-business cycle, energy represents an attractive buying option. The class voted to purchase APC for the portfolio.
On October 22, 2014, Ethan Everett gave the second pitch of the semester, recommending shares of Bed Bath & Beyond Inc. (BBBY). BBBY is a specialty retailer that he finds to be significantly undervalued, and represents a great addition to SMIF’s holdings. BBBY’s remarkable consistency is evident when looking at its historical free cash flows. BBBY’s free cash flow has been positive every year since fiscal year 1996. As a result of its ability to bring in excess sums of cash for an extended period of time, management has consistently been able to execute strategic stock repurchases to enhance shareholder value. With future store growth both domestically and abroad that the market does not seem to factor into BBBY’s stock price, shares look especially attractive. The class voted to purchase BBBY for the portfolio.