Student Managed Investment Fund Annual Report

Page 9

SOLD POSITIONS by Current SMIF Analysts Date Sold

Price Sold

Date Purchased

Price Bought

Dividend

Gain/ Loss

Total Return

Synaptics (SYNA)

6/18/14

$83.76

4/28/14

$61.83

n/a

$2,163

35%

Hi-Crush LP (HCLP)

7/25/14

$68.29

2/5/14

$34.80

n/a

$5,591

93%

Conversant (CNVR)

9/12/14

$34.80

4/9/14

$20.99

n/a

$7,920

65%

L. Brands (LB)

10/28/14

$69.87

4/17/14

$54.27

2.7%

$1,856

31%

Las Vegas Sands (LVS)

10/28/14

$60.10

2/9/12

$47.78

2%

$2,866

46%

Visa Inc. (V)

11/17/14

$249.94

4/9/13

$165.62

.6%

$6.081

52%

Company

SOLD POSITIONS The Fund has put a bigger emphasis of selling our winning stocks or ones that the students do not believe will outperform the market in the next 3 - 5 years. Below is a brief description on why the above stocks were sold. Synaptics (SYNA) - The fund exited half of its position in Synaptics over the summer. This was because the stock saw a significant run up. On a relative valuation analysis the stock was overvalued at a price of $83. Therefore, the fund exited half of its position to gain a significant alpha and a return of 35%. High - Crush LP (HCLP) - The SMIF received its highest return from HCLP. This was a pure play on the fracking process. High - Crush makes the highest quality sand needed in the complex process. In 4 months the stock had a 93% return, the analysts saw this as a sell opportunity. Conversant (CNVR) - Another big winner for the fund was CNVR. Conversant (formerly Value Click) provides online advertising campaigns and programs for advertisers trying to reach consumers globally. The firm was bought out on 9/12/14 and the company paid a premium for the public advertising firm. This resulted in the SMIF receiving a 65% return over the investment period. L. Brands (LB) - L. Brands operates as a specialty retailer of women’s lingerie and other apparel, personal care and beauty products. Its stores include Victoria’s Secret, Bath & Body Works and PINK. LB is one of the best companies in women’s apparel. The fund exited its position in LB after the stock saw a significant run up. On a P/E and EV/EBITDA Multiple valuation the stock was overvalued and would see a multiple contraction. Therefore, the fund sold its position in LB and saw a 31% return from the stock. Las Vegas Sands (LVS) - LVS has been one of the longest held stocks by the SMIF. Purchased in 2012 as a pure play on gambling / casinos in China. With increased regulation and low GDP growth Sand’s high double digit growth was in jeopardy of falling. Furthermore, the stock was overvalued if it could not see 20% revenue growth year-over-year. This analysis led the fund to exit its position for a total return of 46% over the 2 year span. Visa (V) - Visa is a payments technology company operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. After the firm released earnings for the 3rd quarter the stock saw a significant run up. The student analysts saw this as an opportunity to seek a high alpha and reached the conclusion that at the current price Visa will not outperform the benchmark. The SMIF earned a total return of 52%.

University of South Florida Muma College of Business

8


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