TABLE 23:
ASSET EVOLUTION IN THE SECTOR
Value as of 12/31/2019
$202,263.83
+ Buys and Transfers In
$59,426.07
- Sells and Transfers Out
-$51,891.49
+/- Performance Value as of 12/31/2020
$39,780.36 $249,578.77
SPRING 2020 PORTFOLIO MANAGERS
(L-R): Mateo Laverde, Elizabeth Surabian, Michael O’Brien, Andrew Nolan, Erica Burke
INDIVIDUAL EQUITY SPOTLIGHT
Merck and Co. (NYSE: MRK) We pitched the company Merck and Co. and added it to the portfolio on October 14, 2020. We purchased 160 shares at $80.50 and added another 100 shares of Merck and Co. at the price of $80.62 in November. The company operates a pharmaceutical business that develops and provides human health pharmaceutical and vaccine products, and animal health products for prevention, treatment, and control of disease in livestock and companion animal species. We included this stock in our portfolio to bring the sector’s target weight in line with the Macroeconomic Committee recommendation for the fall semester. We also wanted to raise the portfolio’s exposure to the pharmaceutical industry, in light of the potential opportunity from the COVID-19 pandemic and the fact that we were underweight compared to our benchmark, XLV. Merck and Co. was chosen for its strong fundamentals: steady sales growth, strong free cash flows, and an increasing trend in ROE and ROA. The company has a strong global presence and continuous sales growth in international markets, especially China, which had 32% year-over-year growth in 2019. The company also had a better ESG focus compared to its peers. Our valuation work indicated that the stock had upside potential, and we set a price target of $91.80. At the end of December, we held 260 shares for a total valuation of $21,268, which represented 1.18% of the overall portfolio.
FALL 2020 PORTFOLIO MANAGERS
(L-R): Zachary Babineau, Yuan Yao
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