UNIVERSITY OF CONNECTICUT Student Managed Fund April 22nd, 2005 Undergraduate Portfolio Timur BrazilerJason BlissPaul Dobrynin Gigi GopalanDaniel HeyRyan MacNeil Adam PoussardNick Prastos Tanicka Ward Trevor Russo

Mission To employ a systematic approach that consists of both quantitative and qualitative elements in order to identify companies in which to invest

Portfolio Objectives Outperform the S&P 500 index over a 5-10 yr. period Develop a well-diversified portfolio within a fluctuating market environment Select holdings with low-medium risk Invest in companies with greater than 10% required rate of return over a 5-10 yr. period

Current Status Starting funds = $382,960 (9/24/04) Current balance= $902, (4/12/05) Return (as of 4/12/05): 2.53%

S&P 500 vs. SMF

PHILOSOPHY

Quantitative Analysis Monitor Portfolio Investment Process: A Disciplined Bottom-Up Approach Portfolio Qualitative Analysis Consensus Company Analysis Industry Overview

Procedures for Allocation Small team research efforts Select companies based on potential growth and stability Screen equities based on qualitative and quantitative analysis within the required objectives

Equity Analysis Historical Information Annual Reports Future Projections Financial Statements Competition Management Efficiency Ratio Analysis Value Analysis Equity Analysis

Equity Selection Criteria Perform a historical and current analysis of information disclosed in financial statements and analyst reports Financial Strength –Companies who generate excess cash –Companies who are repurchasing stock –Companies that operate with low debt Accounting Practices –Scrutinize accounting and reporting practices Probability of future projections

Financial Models Capital Growth Model –Estimate of FV of equity in 10 years, discounted using our required rate of return to find our buy price Discounted Cash Flow Model –Growth is analyzed to determine today’s stock price based upon projected Cash Flows Earnings Yield Model –Measures yield power with earnings’ growth

Monitor and Review Review – (10%), + 10% Stop loss – (15%) Earnings Announcements Headline News Market factors

PERFORMANCE

Equity Allocation SJM

Company NameShares Purchase Price Current Price Total ReturnTotal GainTotal Value % of Portfolio The Coca-Cola Company $ %1, , % Viacom Inc $ %(569.40)51, % Microsoft Corporation $ %(1,453.50)64, % Lowes Co $ %(476.00)22, % Wal-Mart $ %(2,782.50)17, % Amgen $ %1, , % Kenneth Cole Production $ % , % Smuckers $ %2, , % Cendant $ %(1,970.00)20, % American Financial Realty $ %(90.00)22, % First Data $ %(1,117.80)54, % Berkshire Hathaway $2, %(836.28)67, % NOKIA $ %(740.00)30, % PORTFOLIO STATISTICS

Barrick Gold $ %3, , % Alltel $ %1, , % PHH Corp50 $ , % Diageo $ %1, , % Winnebago $ %(4,015.00)34, % Home Depot $ % , % Gladstone $ %1, , % British Petroleum $ %(24.15)50, % Heinken $ %(152.25)35, % Totals 817, % Continued……. Company NameShares Purchase Price Current Price Total ReturnTotal GainTotal Value % of Portfolio

Portfolio Gains/Losses

Industry Allocation

Values & Returns September 24, 2004April 12th, 2005 Total Portfolio$383,991.56$902, Equity$327,131.56$817, Money Market$56,860$84, PeriodReturn on SMFReturn on S&P (09/24/04-04/12/05)2.53%5.11% Total trading costs= 13 basis points

Under Performers Wal-Mart –Struggle with same store sales growth –Labor problems Unions Class action sexual discrimination suit Winnebago –Gas prices –Missed earnings by 1.5 million –Commodity prices have risen

Best Performers Barrick Gold –Commodities up due to falling dollar price –Expanding mining production –De-hedging policy to increase shareholder value Smuckers –Acquisition of Multifoods –Growth of new products (Pillsbury, Hungry Jack, etc.)

RECENT DEVELOPMENTS

New Positions Diversification –Added position in Energy with British Petroleum –Added position in Telecom with Alltel –Reinforced investment in Financials with Gladstone Capital and Berkshire Hathaway Reinvested in companies that we feel were even further undervalued

LESSONS LEARNED

Professional Development Acquired fundamental skills of equity valuation Enhanced skills in quantitative and qualitative analysis Gained knowledge of research techniques

Group Dynamics Team based research efforts Understand the sacrifices and compromises associated with a team effort “You’re only as strong as your weakest link” “Synergy”

Conclusion Our portfolio is positioned for a strong ten year outlook The Student Managed Fund has provided us with the essential business and social skills that will benefit our professional and personal development

Thank You The Foundation The Investment Advisory Board The Steering Committee Faculty –Patrick Terrion –Chinmoy Ghosh

QUESTIONS & COMMENTS