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.
Joe Quintilian, Bucknell Class of 2003, joined the Student Managed Investment Fund (SMIF) for lunch on September 25, 2015. Quintilian cofounded Axiom Markets in 2005 with two other partners. The company provides liquidity in all futures and commodities markets. In 2012, he developed an equity hedge fund with a partner. Quintilian currently sits on the board of Concord 51 and AWCCF charity board. He has also been past board members of the Bucknell University Alumni Association Board of Directors and NewMark School fundraising. He is very active with Catholic charities, and recently sponsored two breakfasts with Jeb Bush and John Boehner for Catholic elementary schools in the Bronx. Quintilian spoke to the class about macroeconomic conditions and their effects on the securities within the portfolio.
Bucknell University alumni Frank Schreiner ’83, Dan Greenberg ’07, and Katrina Schmaltz ’10 visited the Student Managed Investment Fund (SMIF) as guest speakers on September 23, 2015. Schreiner worked at BlackRock as a Managing Director for 28 years. After graduating from Bucknell, he obtained his MBA from Rutgers Business School. At BlackRock, he led a team of 13 Portfolio Managers, Associate Portfolio Managers, and Portfolio Specialists. Greenberg and Schmaltz are both SMIF alumni. Greenberg is currently an Associate Portfolio Manager at BlackRock. He implements BlackRock Private Investors’ investment process in separately managed accounts for ultra high-net-worth clients, and he also customizes portfolios to reflect client objectives and constraints. Schmaltz is a CPA and had experience working in audit before joining BlackRock. She currently works in separately managed account marketing at the company. Schreiner, Greenberg, and Schmaltz provided the class with insight into the portfolio management process as well as their outlook on the macroeconomy.
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)