Investment Management Club Kickoff Meeting September 27, 2007

Leadership Team Prior ExperienceSummer Internship James Rich Investment Banking Private Equity D.E. Shaw & Co. Ben Hockenberg Investment Banking Private Equity Venor Capital Management Scott Hartman Investment Banking Private Equity Sirios Capital Management Ed Lalanne Sales & Trading Hedge Fund Starting Hedge Fund Faculty Advisor: Professor Korajczyk

2 Role of the IMC Educating students about portfolio management and various styles of investing Providing students with the resources to obtain investment management internships and full-time positions Advancing the reputation of Kellogg as a top-tier investment management program Facilitating the exchange of investment ideas (for interview preparation or personal interest)

3 Investment Management Trends The investment management industry has undergone substantial change in the past several years The number of investment management firms has grown rapidly, driven primarily by hedge funds Firms are responding to the resulting increased competition for returns by enhancing research capabilities / intellectual capital Growth in assets under management has caused firms to expand beyond core strategies (debt/equity, private/public, domestic/international, real estate)

4 What Does This Mean For Recruiting? There is growing demand for MBAs in the investment management industry More firms are establishing formal internship programs The investment management recruiting process remains highly unstructured vis-à-vis banking or consulting Plenty of opportunities exist, but you should be prepared to have a lengthy recruiting process that could last well into the spring

5 Recruiting Prep 1.Start now! 2.Stay informed: follow the capital markets, read the Wall Street Journal, Barron’s and anything else you find useful, follow specific stocks/sectors, invest on your own… 3.Have a well thought out opinion: Why are you pitching a particular stock in an interview? Where is the market heading? Where is the price of oil heading? 4.Attend IMC Club meetings and pitch stocks 5.Take Finance and Accounting courses 6.Take advantage of everything Kellogg and the IMC has to offer: CMC library resources, resume review, mock interviews, speakers, alumni network, interactions with the Asset Management Practicum, lunch/meetings with 2 nd years…

6 Investment Management Firms Investment Banks  Sales & Trading  Private Wealth Management  Sell-Side Equity Research  Asset Management Divisions Mutual Funds Hedge Funds Fund of Funds Insurance Companies Pension Funds University & Non-Profit Endowments On-Campus Job Search Off-Campus Job Search

7 Sample Firms That Have Kellogg

8 Last Year’s Recruiting Environment ~200 positions in investment management were available to Kellogg students last year 27 first-year students reported to the CMC that they worked in IM during the summer Summer Internship Acceptances by Month

9 MBA Competitions Cornell Stock Pitch Competition - 11/2 – 11/3  Sponsored by Wellington, Fidelity, Barclays, UBS, TIAA-CREF  Resume book provided to recruiters  Application to Kellogg IMC due 10/1  More information available at Evergreen Investments Alpha UNC – 11/9  Sponsored by Evergreen Investments, Morgan Stanley, Fidelity, Chilton Investment Company  Application to Kellogg IMC due 10/1  More information available at

10 IMC Meetings and Events this Fall Club meetings consisting of stock pitches and other activities including:  A security analysis primer from Professor Vincent  2 nd Year internship panel  Industry speakers  Course registration advice First year mentorship program (details forthcoming) In addition to weekly meetings, the IMC is planning:  Resume review and mock interviews  Tour of CMC library resources  Outside speakers  Events with the Asset Management Program  Social events

11 Upcoming Events October 1 st, 10:00am: Deadline to register for stock pitch competitions October 3 rd, 7:00pm: David Kabiller – AQR Capital Management - “Demystifying Hedge Funds” October 4 th, 12:15pm: Careers in Finance 2 nd Year Panel October 11 th, 12:15pm: PIMCO – “Intro to Fixed Income Investing”

12 Leadership Opportunities for New Students We are offering several opportunities for 1 st Year and 1Y students to get involved in the IMC, including:  Media Club Coordinator  Alumni Relations Coordinator  Speaker / Events Coordinator  Admissions Coordinator  Webmaster If you are interested in applying for one of these positions, please sign up on the sheet in the front of the room

13 Media Club Media Club is a packet of investment management topical articles & media of interest sourced from all members of the IMC Please soft copies of articles of interest that pertain to the investment management industry; investment ideas; fund management & strategy; anything you read that you found interesting and feel club members would benefit from – Media Club’s success depends on its members – if you read something of interest, err on the side of sending Hard Copies of new Media Clubs will be available monthly at IMC meetings; we are working on sending Acrobat soft copies via Examples: articles from Barron’s, WSJ, McKinsey Quarterly, excerpts from books, industry interviews, articles from Forbes, Fortune, Business Week, etc

14 Asset Management Practicum New academic curriculum taught by Professor Korajczyk  Students manage a portion of Kellogg’s endowment (currently $2.5m)  Rotating roles: industry analysts, traders, portfolio managers, quantitative strategy analysts  Speakers and investment theory sessions also a part of the program 3 or 4 quarter program that begins in the spring of 1st year  Must take full sequence (3 or 4 quarters) to earn credit  Students admitted to program based on application with limited course bidding Full information session on AMP planned for November

15 Q&A