Transcript 1990 - Columbia Business School
Value Investing Program: Student Information Session February 2, 2010 12:30- 2:00, Uris 301
Agenda
Introduction – who we are and what we do Investing at Columbia – something for everyone The VI program
Who should apply Disclaimers and fine print
The application process – what is entailed Recruiting advice Testimonials – advice from the second years
January 2010
Introduction: Heilbrunn Staff
Erin Bellissimo Kevin Oro-Hahn: 212-851-0237 Karen Entwistle: 212-854-1933 Contact Info:
Email: [email protected]
Offices – 3 rd floor of Uris 325 c, d & f Office Hours (Kevin): Call or email for appointment
Website: www.grahamanddodd.com
Linked In group: Value Investing Network of Heilbrunn Center at Columbia Business School
January 2010
Heilbrunn Center: Overview
Our mission is to lead the theory and practice of investing Our approach VI Program for MBA students 25+ investors teaching as adjunct faculty Education Research Initiatives & Special Projects
Walter Schloss Investing Archives / Library eNewsletter –
Graham & Doddsville
Research Consortium - joint research efforts Investment Ideas Club
Product development CIMA education series Outreach
Graham and Dodd Breakfast Class speakers
CIMA Conference
Networking events Sonkin prize Practitioner chair
Discussion forums Recruiting support – mentors, etc
January 2010
Recognition of excellence Industry Partnerships – CIMA, NYSSA, etc.
“Graham & Dodd” Investing
Approaches to Investing
Long Term Fundamental (Value) Levels Short Term Fundamental (Value) Efficient Markets
• Asset Allocation • Cost Minimization
Technical
• Momentum • Price/Volume Patterns
Changes We are here = “Graham & Dodd”
• Market Price vs. Intrinsic Value • Current Price + Forecast Change • Micro • Macro
Long only funds, Hedge funds, Mutual funds, Private Equity, separate accounts, etc.
January 2010
Value Investing Process
Graham & Dodd Investing Framework SEARCH VALUATION
Cheap, Ugly, Obscure
Otherwise Ignored
Areas where you have expertise / ‘edge’ (circle of competence)
Asset coverage
Earnings Power
Franchise & growth analysis REVIEW & RESEARCH RISK MANAGMENT
Key Issues
Collateral Evidence
Personal Biases
Portfolio management
Insurance positions Some Diversification
Margin of Safety
Patience – Default Strategy
January 2010
Investing Electives* – Something for Everyone 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Capital Markets requirement must be fulfilled Economics of Strategic Behavior will be in EMBA Turnarounds Security Analysis Applied Security Analysis I&II (Pershing Square) Earnings Quality Introduction to Value Investing (½ credit) Legends of Value Investing (½ credit) Distressed Value Investing Advanced Investment Research (separate application) Special Situations and Value Investing Applied Value Investing
*Courses in italics are not confirmed, all courses subject to change or be cancelled at any given time
January 2010
All open through bidding
Investment Curriculum
Fall Fall Applied Value Investing Value & Special Situations
Objective: S V R RM
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Provide hands on analyst experience
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Investing incubator S V R RM
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Search strategies – special situation
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More analyst practice Capacity:
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40-50 MBAs Instructors: 1.Blitzer/
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40 MBAs 1.Greenblatt
Shanon 1.Cooper
2.Gaines
3.Williams/ Quinn Admission:
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Application only
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Application only Bid points
if in VI program: •
1,000
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1,000
Fall/Sp Security Analysis
S V R RM
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Graham & Dodd approach
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Exposure to all levels in capital structure
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200+ MBAs S V R RM
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Evaluate competitive advantages (franchises)
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266 MBAs & EMBAs 1.Berg (summer) 2.Liang 3.Mauboussin
4.Nathani
5.Sonkin
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Bidding only
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NA
Sp Economics of Strategic Behavior
1.Greenwald
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Application
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Bidding
Sp Distressed Value Investing Sp Intro to VI Legends of VI
S V R RM
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Regulatory and other issues in distressed or bankruptcy investing S V R RM
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Modern Graham & Dodd framework
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Exposure to leading investors S V R RM
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Search Strategies & Valuation
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Pitching to a PM S V R RM
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Research skills
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Analyst edge
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40 MBAs 1.Krueger
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Application
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Bidding
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Market Rate
January 2010 •
2,000
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100 MBAs
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60 EMBAs 1.Greenwald
2.Ajdler (EMBA)
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Application
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Bidding
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1,000
Sp App. Sec. Analysis I App. Sec. Analysis II •
120 MBAs 1.Francfort/ Zweig
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Bidding only
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NA
Sp Advanced Investment Research •
~30 MBAs 1.Greenspan / Binder 2.Shubin Stein
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Application only
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1,000
Value Investing Faculty
Arnaud Ajdler Gavin Albert Avi Berg Ethan Binder Mike Blitzer Jeff Cino Mark Cooper Greg Francfort Brian Gaines Joel Greenblatt David Greenspan Bruce Greenwald
Dan Krueger John Liang Michael Mauboussin Neal Nathani T. Charlie Quinn Tano Santos Guy Shanon Ken Shubin-Stein Tom Tryforos Artie Williams Caryn Zweig
Value Investing (Spring – EMBA) Security Analysis (Fall – EMBA) Security Analysis (Summer) AIR; Case Studies Investment Frameworks (IS) Applied Value Investing (Fall w/ Shanon) Case Studies Investment Frameworks (IS) Security Analysis (Fall) Applied Security Analysis I & II (Spring) Applied Value Investing (Fall w/ Rabinowitz) Value & Special Situations Investing (Fall) Advanced Investment Research (Spring) Introduction to Value Investing + Legends in Value Investing (Spring) Economics of Strategic Behavior (Spring in EMBA) Distressed Value Investing (Fall) Security Analysis (Summer) Security Analysis (Spring) Security Analysis (Fall) Applied Value Investing (Fall w/ Williams) Introduction to Value Investing + Legends in Value Investing (Spring) Applied Value Investing (Fall w/ Blitzer) Advanced Investment Research (Spring) Applied Value Investing (Fall & Spring in EMBA) Applied Value Investing (Fall) Applied Security Analysis I & II (Spring)
January 2010 9
Application Process
Preparation: Now Interviews: April Written Applications: May 12 Notification: June
January 2010
VI Sequence – Administrative Details
Enrollment capacity ≤ 40 students Application process for Applied Value Investing (AVI), Special Situations & Distressed Value Investing
Interview required in late April/early May (sign up schedule will be posted after info session outside Heilbrunn offices) Written applications due by Wed, May 12, 2010 to faculty & administration Applicants chosen based on: interest in the subject matter, aptitude for investing, and demonstrated commitment to the industry 1.
2.
3.
A cover letter or one page essay explaining why you want to take this class Submit resume Investment idea (2 pages) January 2010
Application Procedure for Fall 2010: Class of 2011
Deadline - submit electronically, by May 12th at 5pm EST (no exceptions).
Professor request – does not come into play until the class has been selected By completing this application, you are ALSO applying to Value & Special Situations Investing with Joel Greenblatt, for Fall 2010 Interview. You must sign-up for and attend a mandatory interview with the Heilbrunn Center staff. There will be interview slots on the following days: April 20th, 21st, 26th, 27th, May 5th Starting February 2
nd
you can sign up for an interview slot on the sign-up sheets outside Uris Hall Room 325F. Time slots will be filled on a first come first serve basis. Be sure to sign up by April 1
st .
Notification - June 9, 2010 via email on application
(Application Procedure continued on next slide
)
January 2010
Application Procedure: Administrative
Your full application should consist of the following:
Completed interview. 15 minute interviews will be scheduled with Heilbrunn staff.
Completed “Applicant Information” form. Including relevant contact information for notification in June.
Resume. Include your summer position.
Cover Letter or One-page Essay.
Investment write up January 2010
Application Procedure: Investment Idea
Investment Write-Up. Choose a company that you believe is a compelling short or long investment idea and write a two-page memo analyzing your idea, including:
How you found the idea, your search strategy, etc. (this is critical) What value do you assign to the company and why What makes this idea compelling Competitive situation of the company (industry or peers) Please limit the text and financial analysis (charts, tables, etc) to two pages (single-sided) January 2010
Application Review Process:
Consideration will be given to interest level, preparation (books read, knowledge of industry, value techniques, etc.), and demonstrated commitment to investing courses. Application review - Applied Value Investing professors and at least one member of the Heilbrunn Center staff.
At the professor's discretion, phone interviews may also be scheduled.
The review/selection process is conducted with our best efforts to match instructor/student preferences.
By submitting this application, you agree to the process and will accept the final decisions of the professors reviewing the applications.
By submitting this application, you agree to have 1,000 bid points deducted for Applied Value Investing and Special Situations. For additional classes offered to you in the spring, you will have approximately 2,000 bid points deducted per class that you chose to pre-enroll in.
January 2010
Disclaimers and Fine Print
The courses offered are subject to change at any time without advance notice due to unforeseen circumstances or changes in teaching schedules or adjunct availability Bid point deductions may be adjusted as we learn from the bidding system (currently = 1,000 for AVI, SS, & AIR; TBD for rest) We promise to do our very best to get you the information you need for your course selection in a timely manner If you have suggestions or concerns about this process – raise these issues NOW. Feedback provided to us at a later date will not be incorporated into this year’s application process Recognizing that there are no ‘perfect solutions’ in life and in Business school, we have done our best to construct a process that is both fair to our students and incorporates the demands of our faculty January 2010
Section
Blitzer/ Shanon Cooper Gaines
AVI Sections: Valuation & Search Course Distinctives
Special Situations: spinoffs, distressed, bankruptcy, rights offerings
Focus
Equity & Debt No shorting Become analyst on a specific sector ; search techniques within an industry General & opportunistic; include some portfolio management & decision making Equities only Shorting Equities only Shorting
Assignments
Whole class preps a live case study each week; final presentation is your own idea 4 presentations during semester Prep assigned idea each week (½ historical and ½ new ideas); final presentation is your own idea) Williams/ Quinn Find, understand, value a wide variety of businesses; identifying franchise vs. “bad” businesses Equities only Pitch assigned idea every 2 weeks; some group work; pitch own ideas by end of semester