The James Fund Investment Report May 6, 2016
Overview Background This organization provides Wofford students with real-life investment experience by managing a stock portfolio. Membership is open to Finance and Accounting majors and non-majors alike. The James Fund's first meeting was held on September 9, 2008. The fund is made possible by a $100,000 gift to the College by Wofford College Trustee R. Michael James (class of 1973) in honor of his classmate, Ed Wile. Proceeds earned from the fund are used to fund micro-credit initiatives in developing economies. For more information see http://www.wofford.edu/accounting/jamesfund/. Organization Members of the fund serve in one of three positions: managing partner, portfolio manager, or research associate. In these roles, students are assigned to one of the four research groups: (i) domestic equity & international, (ii) domestic equity & alternative, (iii) domestic equity & real estate, and (iv) domestic equity & fixed income. Joe Nelson 16 and the Real Estate group. 1
2015-2016 James Fund Members Al Kelly, 16 Managing Partner Dawson Atkinson, 16 Portfolio Manager Richard Fields, 17 Portfolio Manager Mason Huss, 16 Portfolio Manager Tyler Ratterree, 16 Portfolio Manager Kalen Alverson Fletcher, 16 Will Armstrong, 16 Doug Beckner, 17 Wood Britton, 17 Carlton Bunn, 17 Abbas Dalal, 17 Tanner DeFreitas, 16 2
2015-2016 James Fund Members Graham Duncan, 16 Holten Fields, 16 Jordon Goeway, 16 Angela Heinrich, 16 Jon Higbie, 17 Alex Michaels, 16 William Moody, 16 Joseph Nelson, 16 Not Pictured Tye Youngblood, 16 Palmer Salley, 17 Colton Smith, 16 3
Portfolio Performance 4-27-2016 Wofford College James Fund INVESTMENT Ticker Market Value Percent of Portfolio % Gain/Loss Inception % Gain/Loss TTM International 31,704.71 19.88% Vanguard FTSE xus VEU 7,813.75 4.90% 101.76% -11.53% PowerShares FTSE RAFI Dev Mkts PXF 4,467.60 2.80% 7.60% -11.80% ishares MSCI Mexico Capped Investable Mkt EWW 3,756.90 2.36% -20.95% -8.85% ishares Core MSCI Emerging Markets ETF IEMG 7,927.96 4.97% -9.91% -18.42% Copa Holdings SA CPA 2,943.60 1.85% -36.59% -38.56% Orbital ATK, Inc. OA 4,794.90 3.01% 21.23% 19.64% Domestic Equity 70,486.45 44.19% S & P 500 SPY 2,089.20 1.31% 154.38% 1.24% Vanguard Total Market VTI 25,641.60 16.07% 163.28% -0.29% Hillenbrand INC HI 3,357.20 2.10% 147.33% 3.95% Market Vectors Morningstar Wide Moat ETF MOAT 9,813.00 6.15% 65.12% 6.06% Xylem Inc. XYL 3,852.90 2.42% 62.10% 19.85% BlackRock, Inc. BLK 7,341.00 4.60% 27.45% 1.32% QUALCOMM Incorporated QCOM 4,224.00 2.65% -25.74% -21.05% Valero Energy Corporation VLO 3,278.05 2.05% 24.12% 7.29% Gilead Sciences Inc. GILD 5,033.50 3.16% 1.47% -0.56% Matson, Inc. MATX 5,856.00 3.67% -0.89% -5.59% Real Estate 17,365.96 10.89% Vanguard REIT VNQ 5,924.16 3.71% 333.51% 4.31% Omega Health Care OHI 2,070.60 1.30% 306.48% -4.03% Vanguard Global ex-us Real Estate ETF VNQI 2,748.50 1.72% 8.19% -5.03% HCP, Inc. HCP 2,625.70 1.65% -7.36% -14.56% Apartment Investment and Mgmnt Co. AIV 3,997.00 2.51% 6.79% 5.30% Alternative 12,602.70 7.90% Ishares GSCI Commodity GSG 3,727.50 2.34% -54.09% -29.27% ALPS Alerian MLP ETF (AMLP) AMLP 3,654.00 2.29% 7.50% -23.30% United States Natural Gas UNG 5,221.20 3.27% -53.23% -44.55% Fixed Income 23,177.63 14.53% Ishares IBOXX LQD 956.32 0.60% 79.46% 1.76% Vanguard High-Yield Corporate Inv VWEHX 4,017.05 2.52% 29.58% -0.18% Eaton Vance Floating-Rate Advantage A EAFAX 14,596.26 9.15% 329.30% -0.67% Templeton Global Income Fund GIM 3,608.00 2.26% 6.12% -6.29% Money Market 4,181.55 2.62% 0.70% 0.70% TOTAL PORTFOLIO 159,519.00 100% 127.24% -7.79% Benchmark 70.50% -3.41% 4
Target Asset Allocation Domestic Equity 45% Real Estate 10% Alternative 10% International 15% Money Market 5% Fixed Income 15% Asset Allocation Domestic Equity 44% Real Estate 11% Alternative 8% International 20% Money Market 3% Fixed Income 14% 5
Growth of Portfolio Value of a $1000 investment James Fund Benchmark 2200 2000 1800 1600 1400 1200 1000 800 600 6
Risk vs. Return Metrics Comparison Return Std Dev Beta Sharpe Treynor Alpha 1 Year James Fund -7.49% 13.68% 0.79-0.694-0.120-7.98% Benchmark -4.44% 11.02% 0.76-0.585-0.085-5.00% 3 Years James Fund 2.22% 8.51% 0.82 0.026 0.003-7.03% Benchmark 4.16% 8.19% 0.93 0.263 0.023-6.10% 5 Years James Fund 5.37% 7.41% 0.70 0.455 0.048-2.81% Benchmark 5.64% 6.25% 0.70 0.583 0.052-2.53% Inception (Oct. 2008) James Fund 9.71% 13.82% 0.72 0.558 10.76% 0.63% Benchmark 8.45% 15.95% 0.98 0.404 6.59% -3.22% Annual Endowment Contribution 1 Year 3 Years 5 Years 7 Years James Fund -7.49% 2.22% 5.37% 11.63% Wofford College Endowment -5.50% 2.40% 3.10% 8.70% 7
Wofford Micro-Credit Initiative Haiti and Dominican Republic Project Highlights Loans Made in Haiti 136 retail and services loans ($29,400) 280 agriculture loans ($35,200) Loans Made in the Dominican Republic 15 retail and services loan ($7000) REPAYMENT RATE > 98% SAVINGS ACCOUNTS FUNDING $3,384 Examining the loan collateral in Haiti. COMMUNITY PROJECT FUNDING $2,334 EDUCATION FUNDING FOR A YEAR Approximately 140 children SUPPLEMENTAL NUTRITION 105,000 PlumpyNut Bars used by Unicef and World Vision POSSIBLE PARTNERSHIP Investigating a new partnership with Writefully His of Spartanburg. 8
JAMES FUND PLACEMENT Jobs and Internships Goldman Sachs GE JP Morgan Deutsche Bank Lockheed Martin Barclays Bank PricewaterhouseCoopers Deloitte Consulting Ernst & Young Bank of America Wells Fargo Bank UBS BB&T SunTrust Bank Merrill Lynch 7 Mile Advisors Horizon Investments Edens Global Endowment Management First Citizens Bank TDBank Live Oak Bank Elliott Davis Graduate Schools: Duke Vanderbilt University of North Carolina University of Texas Wake Forest Clemson University of South Carolina University of Tennessee University of Georgia Notre Dame N. C. State 9