Will Stockwell ’16 pitched Facebook (FB) to the Student Managed Investment Fund (SMIF) on December 2, 2015. Founded in 2004, FB’s mission is to give people the power to share and make the world more open and connected. With over one billion active users worldwide, FB has an enormous global influence. The company focuses on creating value for people, marketers, and developers. FB’s products currently consist of Facebook, Instagram, Messenger, and WhatsApp. Numerous opportunities for growth will allow FB to continue to be sustainable. Instagram and WhatsApp have yet to be monetized, and the company recently announced the acquisition of Oculus Rift, a virtual reality platform that has yet to be implemented. The majority of revenue is generated from advertisements, and FB has 2.5 million advertising partners. FB released exceptional financial results for the third quarter of 2015, with a 41 percent increase in revenue. The class voted to buy 392 shares of FB.
Bobby Le Blanc ’88 joined the SMIF class for lunch on November 19, 2015. Le Blanc is currently a Senior Managing Director at Onex Corporation, a private equity firm. Since joining Onex, Le Blanc has led all of the company’s acquisitions within the Healthcare and Financial Services sectors. He focuses on the Media, Technology, Telecom, and Real Estate industries as well. He has been with the company since 1999. Prior to joining Onex, Le Blanc has worked at Berkshire Hathaway and General Electric. He also serves on the Board of Directors of many different organizations, including ResCare, Carestream Health, and First Berkshire Hathaway Life. Le Blanc holds an MBA from NYU Stern School of Business.
Tim Howard ’16 pitched Brunswick Corporation (BC) to the Student Managed Investment Fund (SMIF) on November 19, 2015. BC is a global designer, manufacturer, and marketer of recreational Marine and Fitness products. The company’s product portfolio consists of leading brands that have been increasing their market share. Its product offerings are diversified through three key segments: Engines, Boats, and Fitness. One big differentiating factor about BC is that it is the only company to be a leader across both the Marine market and Fitness industry. The company has experienced a gradual but perceptible recovery since the financial crisis in 2008. Revenue has continued to increase since 2012, and BC exceeded analyst expectations eight times within the past nine quarters. Additionally, ever since the company divested its Bowling business in 2014, it has boosted their cash and given them the ability to pursue other acquisitions. The class voted to purchase 600 shares of BC.
Dimitri Drone ’90 joined the Student Managed Investment Fund (SMIF) for lunch on November 17, 2015. He is currently a Partner at PricewaterhouseCoopers (PwC), and leads PwC’s Deals business for the Pharmaceutical and Life Sciences sector. Dimitri advises corporate and private equity clients on the structure of M&A transactions, and he is also a leading advisor on valuation principles within the life sciences industries, which includes pharmaceuticals, biotechnology, and medical devices companies, among many others. Dimitri has been with PwC his entire career. He has his CPA and CFA certifications, and he received his MBA from the University of Chicago. He presented an overview of the biotechnology industry and talked about valuation methods for biotechnology companies.
Anders Velischek ’16 pitched CarMax (KMX) to the Student Managed Investment Fund (SMIF) on November 11, 2015. KMX is a used-car retailer in the Consumer Discretionary sector, within the Specialty Retail industry and the Automobile Retail sub-industry. The company was founded with a vision to simplify the used-car buying experience. Their customer-focused business model encompasses low, no haggle prices and guaranteed appraisals. KMX’s strong executive leadership, share repurchase program, and continued domestic expansion illustrate its enormous growth potential. However, some risks that the company faces include a drop in used-vehicle sales prices, a decrease in consumer spending, a rise in delinquency rates, and a rise in gas prices. Furthermore, the company’s auto loan financing program, CarMax Auto Finance (CAF), is risky as well.
Emily Dafilou ’16 pitched Restoration Hardware (RH) to the Student Managed Investment Fund (SMIF) on November 4, 2015. RH is a leading luxury retailer in the home furnishings marketplace within the Consumer Discretionary sector. Their product offering includes furniture, lighting, textiles, bath ware, décor, outdoor and garden, and children’s furnishings. Emily highlighted the company’s competitive strategy, which includes its positioning as a high-end luxury brand, brand image, pricing model, multi-channel sales, and real estate platform. RH’s unique business model includes its next-generation Design Galleries, which is a growth strategy that many specialty retail stores are not able to do. The company has also demonstrated stellar financial performance, showing consistent revenue growth at a rate of over 20 percent for the fifth consecutive year. The launch of RH Teen and RH Modern will add to the company’s top and bottom line. As a company that was near bankruptcy in 2001, RH has since recovered and continues to show promising growth within a niche market. The class voted to buy 300 shares of RH.
Guest Speaker Mike Cattano joined the Student Managed Investment Fund (SMIF) for lunch on October 29, 2015. Cattano graduated from Bucknell in 1989 and attended NYU Stern School of Business. He is currently a Managing Director at Bank of America Merrill Lynch. He is also the senior Latin American Credit trader in their Emerging Markets Fixed Income group. Cattano joined BofA in 2014 after he spent 17 years in global credit trading at Lehman Brothers, and then Barclays, in both London and New York City. He spent the first seven years of his career at J.P. Morgan, also in credit trading. Cattano gave the SMIF class an overview of the fixed income market and emerging market performance.
Bucknell University alumni Keith Lockwood ’96 and Jaspinder Kanwal ’11 joined the Student Managed Investment Fund (SMIF) as guest speakers on October 21, 2015. Lockwood is currently a Managing Director in Healthcare Investment Banking at Jefferies. He has been with the company for the past six years. Before joining Jefferies, he was an Executive Director at UBS Investment Bank, where he worked for 11 years. Kanwal is a SMIF alumnus and started his career as an Investment Banking Analyst at Jefferies. He is currently an Associate. Lockwood and Kanwal presented two valuation cases during their visit and also stayed to answer questions from the class.