1. UNIVERSITY OF CONNECTICUT Student Managed Fund December 3rd, 2004 Undergraduate Portfolio Timur BrazilerJason BlissPaul Dobrynin Gigi GopalanDaniel HeyRyan MacNeil Adam PoussardNick Prastos Tanicka Ward Trevor Russo

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

3. Portfolio Objectives Outperform the S&P 500 index 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

4. Current Status Starting funds = $382,960 (9/1/04) Current balance= $409,124.79 (12/2/04) Return to date: 6.83%

5. S&P 500 vs. SMF

6. Equity Allocation

7. Portfolio Statistics TickerDateQuantity Purchase Price 12/02 CloseChange Total Change Current Value KO9/2450039.8640.401.4270.0020,200.00 KCP11/1887028.6831.19*8.82,183.7027,135.30 AMGN11/1030059.5062.985.81044.0018,894.00 LOW11/0140056.5057.722.2488.0023,088.00 VIA10/0475035.8037.033.4922.527,772.50 MSFT11/0171528.1630.26*7.51501.521,635.90 WMT11/0835056.5853.18-6.0-119018,613.00 VFINX9/08-103.48110.436.74-220,375.99 Cash------31,410.10 409,124.79 *Include dividend yields to be realized.

8. Portfolio Gains/Losses

9. Procedures for Allocation Small team research efforts Selection of companies based on potential growth and stability Screening of equities based on qualitative and quantitative analysis within the required objectives

10. Quantitave Analysis Monitor Portfolio Investment Process: A Disciplined Bottom-Up Approach Portfolio Qualitative Analysis Consensus Company Analysis

11. 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

12. Equity Analysis Begin analysis: –Company’s Past Past performance Historical data –Future Assumptions CF/Earnings Projections Growth Rate External forces Market Trend Future P/E –Competitive environment Competition Ratio Analysis –Management Effectiveness Ratios –Profit Ratios –Debt Ratios Value –Required rate of return –Intrinsic value –Yield –P/E –Growth Efficiency –ROI, ROE, Operating Profit Margin

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

14. Management Management objectives Board of directors –Invested interest Management Capital Allocation Strategy –Low debt Insider Trading SEC Filings

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

16. Monitor and Review Review –-10%, + 10% Stop loss –-15% Earning Announcements Headline News Market factors

17. Industry allocation

18. Looking Forward Diversify portfolio holdings Currently evaluating: –Nestle –Wrigley –Diageo –American Financial Realty

19. Conclusion Stock Selection and Market Conditions Stability and confidence gained through extensive research and analysis Surpass the S & P 500

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

21. QUESTIONS? & COMMENTS?