1. FIN 422: Student Managed Investment Fund
Topic 1: Introduction
Larry Schrenk, Instructor

2. Today’s Outline
Some Syllabus Details
Fund Management
Introduction

3. 1. Syllabus: The Boring Part

4. Introduction FIN 422: Student Managed Investment Fund
Larry Schrenk, Instructor
Course Page
Syllabus (Next Class)

5. Contact Information
Office: Somsen 319F
Telephone
Webpage

6. Office Hours Office Hours On Campus Policy 8:00-10:00 AM MWF
12:00-1:00 PM MWF
Somsen 319F
On Campus Policy

7. Textbook No Required Textbook Main Resources: Copies on reserve.
Aswath Damodaran. Investment Philosophies: Successful Strategies and the Investors Who Made Them Work. 2nd ed. Wiley, 2012.
Aswath Damodaran. Investment Valuation: Tools and Techniques for Determining the Value of any Asset. 3rd ed. Wiley, 2012.
Copies on reserve.

8. Evaluation
Exams 30% each) 60%
Report(s) %

9. Exams Two Exams (30% each) No Crib Sheets, Formulae Sheets, Etc.
Due dates are on the Schedule Page

10. Exam Format Format Not Cumulative TBA
But Later Material Builds on Earlier!

11. Assignments Firm Report
Analyst’s Report Evaluating a Firm as Possible Investment
Groups
CFA Format

12. Schedule Introduction Investment Philosophies
Financial Statement Analysis
Estimating Input Factors
Valuation Techniques

13. Schedule: Introduction

14. Schedule: Investment Philosophies

15. Schedule: Financial Statement Analysis

16. Schedule: Estimating Input Factors

17. Schedule: Valuation Techniques

18. Course Sequences Intro to Finance Investments Security Valuation
Portfolio Theory
SMIF
Intro to Finance
Investments
Security Valuation + Portfolio Theory + SMIF

19. 3 vs. 1 Credit 3 Credit All Classes Exams Report 1 Credit Friday Class
Report(s)

20. Course Evolution Shift to Practical Applications
Shift to ‘Nuts and Bolts’ versus Theory

21. 3. Fund Management

22. Fund Management ‘Foundation’ Fund
Consulting Role
$200,000
Investment Policy Statement
Individual Analysts’ Report Presentation
Date: TBA

23. Fund Reports Reevaluation of Positions New Positions
Portfolio Analysis

24. Tools CRSP/Compustat (CRSPSift) Mergent Financial Resources Page
CRSP/Compustat Page
Mergent
Online
Intellect
Archives
Financial Resources Page

25. Opportunities
CFA Research Challenge
SMIFC Conference

26. 4. Introduction

27. Readings
IV 1 (Aswath Damodaran. Investment Valuation: Tools and Techniques for Determining the Value of any Asset. 3rd ed. Wiley, 2012.)
V 1 (Tim Koller, Marc Goedhart, and David Wessels. Valuation: Measuring and Managing the Value of Companies. 6th ed. Wiley, 2015.) 

28. Valuation Approaches Fundamental Analysis Technical Analysis
Market Timing
Efficient Markets

29. The Key Question
What is the prime characteristic to look for in an investment?
Growing Firm?
Strong Firm?
Growth Potential?
Bad Firm?

30. The Key Question
What is the prime characteristic to look for in an investment?
A Mispriced Firm

31. What is Mispricing?
Market Price ≠
Intrinsic/True Value

32. Sources of Mispricing Only Some Examples Miscalculation of Growth
Product
Firm
Industry
Market Imperfections
Unpriced Subsidy
Unpriced Tax Advantage
Modelling Error

33. Criteria for Successful Investment
Identify Mispricing
Market must Correct Itself
Active
Passive
NOTE: Time Horizon