David Nazarian College of Business and Economics

  • MBA Student Investment Fund

    2015–16 Academic Year-End Report

MBA Student Investment Fund

Table of Contents

Transactions
Portfolio Holdings
Return Performance

Dear Friends of CSUN’s Nazarian College Graduate Programs, 

Thank you for your interest in the investment outcomes realized by MBA students in the David Nazarian College of Business and Economics, charged with the management of a portion of the California State University, Northridge endowment. I have followed their strategies and results and am impressed, as I am confident you will be, with their ability to go head to head with (and often outperform) leading professional fund managers. Their finely tuned financial acumen stems from the opportunities they enjoy in the Nazarian College to receive instruction from internationally acclaimed faculty experts and top professionals, and to employ state-of-the-art analytical models and platforms. 

CSUN’s Nazarian College MBA is included among U.S. News & World Report’s Best Part-time MBA Programs, the college is consistently named as a Best Business School by Princeton Review and as a leading school for financial planners by Financial Planning Magazine, its undergraduate accounting program is ranked third in the nation by CollegeChoice, and its accreditation by the premier accrediting organization AACSB International places it within the top five percent of global business-degree-granting institutions. Students are earning Bloomberg certification and receiving instruction in financial modeling at a level never before seen at CSUN. 

I invite you to learn about the multiple ways in which you can engage with and support the efforts that underlie the growing contributions and impact of our students and alumni on our economy and society by visiting http://www.csun.edu/nazarian or emailing us at

Sincerely,

Kenneth R. Lord, Ph.D.
Dean 
David Nazarian College of Business and Economics  


 

FROM THE FACULTY ADVISOR

On behalf of the MBA Student Investment Management class of 2016 at California State University, Northridge, I am pleased to present the Academic Year 2015-16 Report.

The Student Investment Management class is one of the special opportunities for finance students at CSUN. In this class, students actively manage part of the university’s endowment, and through that, develop and sharpen their investing skills and knowledge. The class provides a number of other benefits to our students and the program such as, career opportunities for our students, closer ties to the financial community and increased awareness and brand name for our programs.

The students spent the first part of the semester acquiring the research tools and reviewing the existing portfolio, identifying over and underrepresented sectors, and familiarizing themselves with the capital markets’ conditions. Then they used stock screeners and thorough research to identify the stocks to be sold from, or added to, the portfolio. During the semester the students also went through rigorous and intensive training in equity valuation and portfolio management, based on topics covered in the CFA exams. 2015-16 was a challenging year for the financial markets around the world as well as the MBA Student Investment Fund.  On May 31, the value of the portfolio was $912,808, compared to $935,967 a year earlier, a drop of around 2.5% compared to a loss of 0.5% for the S&P 500.

The class would like to thank Mrs. Debbie Simon, president of Simon Financial and Mr. Andrew Crowell, president of Crowell Weedon Asset Management, for sharing their knowledge and experiences with the class this year. The Report acknowledges the support of the University Corporation, the Dean and Graduate offices, and CSUN Marketing for editing the report.                                                                        

Sincerely,

Vicentiu Covrig , Ph.D., CFA        

 

Investment Policy

Objectives

The class and the Student Investment Fund’s management have both educational and investment goals. The educational goal is to enrich the students’ education by applying the academic knowledge to a real-life investment management experience. The broad investment goal is to outperform the Standard and Poor’s 500 index, taking a risk level very close to the risk of the index. The investment strategy is a top-down asset allocation, beginning with the analysis of the current macroeconomics environment, followed by industry analysis and allocation, and finishing with the security analysis and selection. 

CONSTRAINTS AND SUGGESTED GUIDELINES

  • Investments in common equity or a limited number of narrow focused equity ETFs
  • More than 80% allocation to U.S. Equities
  • The majority of the portfolio invested in large capitalization stocks
  • Time horizon – 3-5 years
  • Taxes – Income and capital gains from the fund are not taxed
  • No short sales or derivatives allowed
  • No margin trading permitted
  • Students will make several buy/sell presentations to the class throughout the semester. The class will discuss the merits of the companies presented and then vote on the potential buys or sells. A stock will be bought or sold upon approval by a majority of the class’ students.

 


Investment Performance*

graduate portfolio graph

* Investment performance=Portfolio value/Portfolio value at inception

Investment Performance*

combine portfolio graph

* Investment performance=Portfolio value/Portfolio value at inception

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Transactions
Sales # of shares transacted Price per share Transaction date
Occidental Petroleum 150 $74.34 October 16, 2015
Haliburton 400 $37.81 October 16, 2015
Linkedin 90 $117.43 March 3, 2016
California Resources 60 $11.90 March 3, 2016
Yum Brands 150 $76.39 March 3, 2016
Simon Property 100 $197.41 March 3, 2016
Ambarella 200 $37.50 May 17, 2016
Bank of America 800 $13.97 May 17, 2016
Purchases
Arista Networks 250 $66.82 March 3, 2016
Chipotle Mexican 30 $546.76 December 8, 2016
GW Pharmaceuticals 200 $81.78 May 17, 2016
Kimco Realty 700 $27.75 March 3, 2016
Telekom Indonesia 400 $56.54 May 17, 2016
Telekom Indonesia 400 $56.54 May 17, 2016
Stryker 200 $112.59 MAY 17, 2016
Charles Schwab 50 $35.50 December 8, 2015
Starbucks 300 $60.33 October 16, 2015
Volkswagen 600 $27.81 October 16, 2015
Lockheed Martin 100 $221.27 December 8, 2015
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Portfolio Holdings 5/31/2015 5/31/2016
Category Ticker Shares Values Shares Values
AKAMAI AKAM 200 $15,254 200 $10,916
AMAZON AMZN 50 $21,461 50 $36,139
AMBARELLA AMBA 200 $18,042
APPLE INC AAPL 630 $82,076 630 $62,912
ARISTA NETWORKS ANET 250 $18,322
AUTOMATIC DATA ADP 300 $25,653 300 $26,352
BAIDU BIDU 90 $17,786 90 $16,068
BANK OF AMERICA BAC 800 $13,200
CALIFORNIA RESOURCES CRC 60 $471
CDK GLOBAL CDK 100 $5,329 100 $5,530
CHEVRON CVX 200 $20,600 200 $20,200
CHIPOTLE MEXICAN CMG 30 $13,259
COSTCO WHSL COST 500 $71,295 500 $74,385
CVS CVS 200 $20,476 200 $19,290
DISNEY DIS 400 $44,148 400 $39,688
GILEAD SCIENCES GLD 600 $67,362 600 $52,236
GOLDMAN SACHS GS 200 $41,238 200 $31,896
GW PHARMA GWPH 200 $17,824
HALLIBURTON HAL 400 $18,160
HOME DEPOT HD 400 $44,568 400 $52,848
INTEL INTC 500 $17,230 500 $15,795
KIMCO REALTY KIM Shares Values 900 $19,726
KYTHERA KYTH 400 $20,148
LINKEDIN LNKD 90 $17,544
LOCKHEED MARTIN LMT 100 $23,623
MASTERCARD MA 500 $46,130 500 $47,950
NIKE NKE 150 $15,256 150 $16,566
TELEKOM INDONESIA TLK 400 $21,980
OCCIDENTAL PETROLEUM OXY 150 $11,728
RAYTHEON RTN 150 $15,489 150 $19,451
ROSS STORES INC ROST 600 $58,002 600 $64,080
SCHWAB CHARLES SCHW 50 $1,529
SIMON PROPERTY SPG 100 $18,140
STARBUCKS SBUX 300 $16,467
STRYKER SYK 200 $22,232
UNDER ARMOUR UA 600 $23,523 600 $21,810
Union Pacific UNP $30,273 300 $25,257 300
VOLKSWAKEN AG VLKAY 600 $18,522
3M MMM 300 $47,724 300 $50,496
YUM! YUM 150 $13,517
Total Equity Value $861,798 $883,349
Cash $74.169 $29,459
TOTAL PORTFOLIO VALUE $935,967 $912,808
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Return Performance
CompanyBeta1Return YTD (%)2Return 1 YR (%)Return 3 YR (%)3Risk 3 YR STD (%)4Shape Ration 3 YR5
3M1.0516.24%8.74%18.63%16.46%1.08
Akamai Technologies1.184.34%-27.67%7.20%33.36%0.19
Amazon.com1.6513.47%67.70%39.34%32.73%1.17
Apple1.49-4.12%-21.59%18.65%24.82%0.71
Arista NetworksN/A-5.31%2.35%15.23%48.16%0.30
ADP0.817.70%5.35%16.60%16.55%0.95
Baidu Inc ADR2.23-2.98%-12.20%23.43%38.45%0.59
CDK GlobalN/A24.05%15.67%N/AN/AN/A
Charles Schwab Corp1.56-3.89%-2.48%18.24%29.21%0.59
Chevron Corp1.2816.33%3.28%-2.18%22.84%-0.14
Chipotle Mexican0.30-1.53%-27.62%7.78%38.35%0.18
Costco Wholesale0.85-6.22%6.37%13.30%16.49%0.75
CVS Health0.960.85%-3.84%20.78%17.18%1.16
Gilead Sciences1.24-10.74%-22.31%20.88%30.19%0.66
Goldman Sachs1.32-9.21%-21.55%1.63%21.66%0.03
GW Pharmaceuticals3.0330.18%-25.92%114.90%96.20%1.18
Home Depot0.971.88%20.81%23.24%18.63%1.20
Intel1.06-5.43%-1.90%12.12%23.07%0.49
Kimco Realty0.6610.42%21.93%14.14%18.80%0.70
Lockheed Martin0.6412.40%27.48%35.86%16.76%2.09
MasterCard1.331.56%3.70%20.43%22.07%0.88
Nike0.51-10.01%8.98%22.67%21.81%1.00
PT Telekomunikasi0.7626.55%30.86%10.83%28.76%0.34
Raytheon0.626.39%29.29%28.79%19.02%1.47
Ross Stores Inc1.03-1.55%11.17%19.83%23.12%0.82
Starbucks Corp0.72-5.15%7.47%22.40%21.21%1.01
Stryker Corp0.7623.93%17.39%20.96%16.80%1.19
Under Armour Inc Cla0.00-5.27%-3.13%36.27%37.49%0.94
Union Pacific Corp0.728.06%-14.90%5.81%22.09%0.22
Volkswagen AG ADR1.892.56%-35.86%-8.42%32.24%-0.29
Walt Disney Co1.44-3.65%-9.31%17.72%20.19%0.83
Yum Brands Inc0.8815.08%-6.50%8.78%25.91%0.30
MBA Portfolio [equal weighted]1.104.22%1.39%20.24%27.81%0.72
S&P 500 2.59%-0.70%8.73%13.43%0.58
  • [1] Beta data from Yahoo.Finance.
  • [2] YTD calculated to the report cutoff date of May 31, 2015.
  • [3] Annual geometric average (Cumulative Growth Annual Rates)
  • [4] Standard deviation of returns.
  • [5] Sharpe ratio is (3yr Ret - 3yr Treasury Yield)/ Standard deviation. Average 3 yr Treasury Yield was 0.91%

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