UNIVERSITY OF CONNECTICUT Student Managed Fund March 11, 2004 Undergraduate Portfolio Timothy BlaisPatrick MastanEmeka Okafor Kristen CandellaDaniel McCarthyTodd Shrier Edmund ChungPhilip OdackalTimothy Sweeney Julia Yelevich George Kruglov

Mission To employ a systematic approach consisting of both quantitative and qualitative fundamentals to identify companies that possess strong growth potential and above average return.

Portfolio Objectives Outperform the S&P 500 index Develop a well-diversified portfolio Invest consistently with market forecast

Industry Selection Quantitative Analysis Qualitative Analysis Valuation Models Portfolio Monitoring Re-optimization Stop Loss/Review Analysis Stock Selection Process Portfolio Discussion Group Vote

Value

Performance Period Return on SMF Return on S&P Outperform (09/04/03-02/24/04)15.43%11.11%4.32% (12/08/04-02/24/04)9.53%6.81%2.72%

Performance

Risk Assessment (As of 12/8/03) Symbol Beta of (12/8/04) Percentage of PortfolioWeighted Average Beta ANF %0.152 BUD % CSG %0.003 EAT %0.013 HDI %0.079 MO %0.024 MSFT %0.162 PAYX %0.056 PFE %0.041 TJX %0.066 S&P %0.236 Portfolio Beta *Beta as of 12/8/03 obtained from

Risk Adjusted Performance (12/8/03-02/24/04) Return on Portfolio (Rp) Return on S&P (Rsp) Risk Free Rate (Rfr) (12/8/03-02/24/04) 9.53%6.81% 3.28% Excess Return (Rp-Rfr) 6.25%3.53% Risk (Weighted Average Beta) yr T-Bond Treynor Index 7.56%3.53% (12/8/03) T=[(Rp-Rfr)/B]

Attribution Analysis Allocation Effect Selection Effect

Sector Allocation Effect (12/8/03-2/06/04) SectorSMFS&P 500 Sector return (12/8/03- 02/6/04) Excess returns S&P Sector - **Overall S&P Sector allocation Contribution Information Technology Consumer Discretionary Consumer Staples Health Care Utilities Financials Energy Materials Industrials Telecommunications Services Total **S&P performance from 12/08/ /06/2004 was 6.87%

Security Selection Effect (12/08/03-02/06/04) Overall Return Difference = ***SMF Performance - **S&P 500 =.0070 or 70 Basis Points Security Selection Effect = (.0070) – (-.0099) = or Basis Points **S&P performance from 12/08/ /06/2004 was 6.87% ***SMF performance from 12/08/ /06/2004 was 7.57%

Current Holdings Company Name Current Value (As of 02/24//04) Holding Period Return (As of 02/24/04) Cadbury Schweppes$19, % Altria$18, % Pfizer$24, % Brinker$9, % Abercrombie & Fitch$23, % Tj Maxx$17, % Harley Davidson$17, % Anheuser-Busch$10, % Microsoft$21, % Fossil$20, % Mattel$20, % Paychex$13, %

Holdings Returns

Forward Expectations Market Outlook –Historical Return –Value of Dollar –Inflation –GDP Risks –Credit Risk (S/T vs. L/T) –Unemployment –Budget Deficit

Conclusion Retrospection Self-Analysis

Thank You The Foundation The Advisory Board Faculty –Patrick Terrion, Professor Ghosh, Steering Committee

QUESTIONS? QUESTIONS?