1. General Body Meeting 09.01.11

2. Mutual Investment Club of Cornell Agenda  Introduction to MICC  How to Get Involved  Future Events  Macro Update  Portfolio Update 2

3. Mutual Investment Club of Cornell MICC Organization 3

4. Mutual Investment Club of Cornell Introduction to MICC  $50,000 Mutual Fund  Dates back to 1998  Created through merger in Spring 2010 between two largest investment clubs at the time  Focus on Membership Education 4

5. Mutual Investment Club of Cornell General Body Meetings Every Thursday 5:15PM – 7:15PM (Malott 251)  5:15PM – 6:15PM: Education Series  6:15PM – 7:15PM: General Body Meeting  Club announcements  News updates  Investment pitches and decisions 5

6. Mutual Investment Club of Cornell Executive Board Introduction  President – John Yoshida  Vice President – Miles Moen  Portfolio Manager – Terence Hu  VP of Public Relations – David Kim  Senior Analysts 6

7. Mutual Investment Club of Cornell Sector Groups  Consumer – Andrew Schrichte  Energy – Mihir Patel  Financials – John Troncoso  Healthcare – Eric Hoffman  Industrials – Peter Cui  Macro – Zach Peskin  Media & Telecom – Dan Han  Quant – Ali Yazdi  Real Estate – Derek Creadore  Technology – Aleks Zvorinji 7

8. Mutual Investment Club of Cornell How to Get Involved? 8

9. Mutual Investment Club of Cornell Opportunities for Members  Junior Analyst Program  Newsletter Team  Education Series  MICC Events 9

10. Mutual Investment Club of Cornell Junior Analyst Program  Description  Work closely with senior analysts in covering a sector  Pitches to enhance our portfolio  Pay close attention to news within your sector  Apply online: cornell-micc.com/jobs/  Notifications will be made early next week 10

11. Mutual Investment Club of Cornell Newsletter Team  Description  Write about a topic relevant to financial markets or investing that you’re interested in  Be published in a newsletter that is distributed throughout campus (or even internationally!)  Write blog posts for our website  Talk to David Kim (sk852) 11

12. Mutual Investment Club of Cornell Education Series  Primary vehicle of learning basic concepts of investing and financial analysis  Selected Topics  What is a stock?  Presentation skills  Introduction to modeling 12

13. Mutual Investment Club of Cornell Future Events 13

14. Mutual Investment Club of Cornell Future Events  Cornell Undergraduate Stock Competition  NYSSA Investment Research Challenge  Various Recruiting Events  NYC Trip  Social Event: Poker? 14

15. Mutual Investment Club of Cornell 1 st Annual CUSC  Intercollegiate stock competition  Competition dates: 9/20 – 9/21  First Prize: $3,000. Second Prize: $1,500  Cornell internal competition  9/10 Presentation  Send email to StockPitchCU@gmail.com by 9/2StockPitchCU@gmail.com Include name, major and year 15

16. Mutual Investment Club of Cornell CFA Institute Investment Research Challenge  International research competition  Written report + Presentation  Team-based  First round: Mid-late January  Workshops throughout the Fall Semester  Contact John Yoshida (njy3) if interested 16

17. Mutual Investment Club of Cornell Macro Update Zach Peskin 17

18. Mutual Investment Club of Cornell Global Macro Update  Fed plans to keep interest rates low until 2013  Growth stalls in the U.S.  Debt Ceiling debate/downgrade/super- committee  Fiscal stalemate  Europe debt/growth crisis  Austerity in Europe  Consumer confidence at lowest levels since Carter administration 18

19. Mutual Investment Club of Cornell Global Macro Update  Global fixed income rally  Yield on 10yr US Treasury notes dropped below 2%  Negative real rates  Sell-off in global equity markets  Gold rally (bubble?)  Continued weakness in housing and financial industry  Sharp pullback in Oil (WTI/BRENT divergence)  Dramatic increases in volatility 19

20. Mutual Investment Club of Cornell Portfolio Review Terence Hu 20

21. Mutual Investment Club of Cornell Post Summer Portfolio Review 21 Comparison of past three month returns MICC return: -5.37% Dow Jones return: -8.02% S&P 500 return: -9.83% MICC’s performance over the summer was affected by the macro economic environment

22. Mutual Investment Club of Cornell CYB (Chinese Yuan ETF) Investment Thesis 22  Diversification benefits  Chinese Yuan definitely undervalued; momentum of appreciation  Political pressure to appreciate Yuan due to instability caused by inflation  Stable store of value; no downside risk  Chance of one-off Yuan appreciation

23. Mutual Investment Club of Cornell CYB Summer Performance 23 Return: 0.3%

24. Mutual Investment Club of Cornell Reasons to sell CYB 24  Although original thesis holds true, Chinese government likely to maintain slow and steady appreciation  Poor tracking performance  High opportunity cost

25. Mutual Investment Club of Cornell VXX (VIX ETF) Investment Thesis 25  Convenient hedge against volatility  Markets not entirely stable; several risks on horizon: Euro crisis Oil; middle east unrest Inflation in emerging markets US credit worries

26. Mutual Investment Club of Cornell VIX at lowest point since 07 26

27. Mutual Investment Club of Cornell VXX Summer Performance 27 Return: 68.2%

28. Mutual Investment Club of Cornell Reasons to sell VXX 28  Markets have stabilized  Sell when up to realize profits  Perhaps invest in VXX during a period of low volatility in the future

29. Mutual Investment Club of Cornell Thanks for coming by!  Junior Analyst Applications  Newsletter Team  Next Week: Portfolio Review 29