General Body Meeting 9/15/10

1. General Body Meeting 9/15/10

2. Agenda • Announcements • Junior analysts • Upcoming info sessions • Financial regulation headline • Portfolio review • General Growth Properties Update • Brain teaser answer • Conclusion

3. Junior analysts • Tech: David Kim, Zach Peskin, Josh Lyons, Nicole Kim • Media: • Macro: Duane Mitchell, Larry Kogos, Mollie Maher • Financial Institutions: Phil Crawford, Adam Nicoletti, Albert Esteves, Jessica Zapas • Real Estate: James Bosco, Wen Jun Wong, Brian Hong • Energy: StephMenke, Andrew Schoen, Stephen Lane, Andrew Kugler • Consumer/Retail: Philip Gatto, James Rockas, Andrew Schrichte • Industrials/Basic Materials:

4. Buying shares • All members participating in the management of the fund must purchase a minimum of 3 shares • Investments will be collected next week

5. What to do next • If you are a junior analyst • Reach out to your senior analyst and await instructions • Attendance at general body meetings is mandatory • If you are not a junior analyst • Highly encouraged to attend education sessions (5:00-6:00pm)

6. Basel III • Banks will have to keep more capital on hand to protect against huge investment losses • They have to hold common equity to the value of 4.5% of their assets by 2015 up from 2% • By 2019, need a 2.5% capital conservation buffer of common equity to be run down during financial stress • Tier 1 leverage ratio of 3% • Bank stocks led gains for Europe’s stock markets • The euro gained 0.7% against the dollar

7. Credit Suisse Group(CS) • P/E ratio 9.2 compared to industry 10.7 • CHF 14 million net inflows of new assets • Increase in market share in AM and IB • Industry-leading capital strength; Tier 1 of 16% • Continued movement to a more conservative risk profile • Hiring up 5% • Q2 EPS of $1.12 with share price of $46.91 • Recommendation: Hold

8. Technology Sector Holdings • Cisco Systems, Inc. (CSCO) • Consumer electronics, networking and communications • Hewlett-Packard (HPQ) • Computing, data storage, and networking hardware • iGo, Inc (IGOI) • Power products for electronic devices

9. Cisco and HP

10. iGo, Inc • Different story from Cisco and HP • Short-term play

11. América Móvil (NYSE: AMX)

12. AMX- Overview • Leading provider of wireless telecommunications in Mexico, owned by Carlos Slim • Fifth largest mobile operator (number of subscribers) in the world • Largest company in Latin America: operates throughout Latin America, U.S.A., and South America

13. AMX – Recent News • Performance since summer: up 3% • Fixed line expansion to compete with telefonica • Acquires Telmex, Mexico’s largest carrier of telephone and Internet service • Partially owns NETC, largest cable operator in Brazil • Q2 Earning • Subscribers up 30.7% • Revenue up 12% YOY

14. AMX - Analysis • Bullish on Latin America • Control over Mexico telecom market • Growth in fixed line operation • Strong liquidity position • Some concern over 3G competition

15. GLD • Current Price: 123.99

16. GLD (continued) • Falling value of the USD • Against Euro, CAD, AUD, Asian currencies • Growth and strong demand from China and India • Consistent fear of inflation (though experienced volatility along the way)

17. Union Pacific Corp (UNP) • Recommendation: Hold • Thesis: • Best way to play recovering economy • Efficient method of transportation • Undervalued • Great business with a durable competitive advantage

18. Major Events Since Purchase • Post purchase drop • Bad outlook by management • Rebound • Warren Buffett: BNI • Reports earlier this year of higher car loadings.

19. Recent Events • Q2 Earnings • Record EPS of $1.40 • 52% improvement yoy. • Total revenue growth of 27% yoy • All segments • Operating Ratio of 69.4% • Best ever

20. Occidental Petroleum (OXY) • Recommendation: Hold • Oil and gas producer • Small chemical business • Strong balance sheet • Debt/Equity .08 • Steady production gains • Primarily onshore

21. Original Thesis • Oil was undervalued • Good reserve replacement ratio • Well run company

22. Second Quarter Earnings • Q2 2010 net income $1.1 billion ($1.31 per diluted share). • Quarterly yoy production volume growth of over 3 ½ percent. • Management style

23. Boardwalk Pipeline Partners (BWP) • Simple: Gas transportation and Storage in Southeast Region • Tax advantaged set-up • Dividend of 6.5%

24. Thesis • Take the yield • Natural gas supply growth  pipeline demand increase. • Profit and yield will rise. • Barriers to competition • If market range bound, profit comes from dividends

25. Recent events • Q2 Earnings • Revenue disappoints • Likely temporary • Joint anomalies • Basis spreads on interruptibles • Macroeconomic weakness • Treasury yields dropping • Range bound market

26. Procter & Gamble • The Procter & Gamble Company manufactures and markets consumer products in countries throughout the world. • The Company provides products in the laundry and cleaning, paper, beauty care, food and beverage, and health care segments. • Procter & Gamble's products are sold primarily through mass merchandisers, grocery stores, membership club stores, drug stores, and neighborhood stores.

27. Original Thesis • Portfolio of strong billion dollar brands • Consumer preference for quality and strong value in tough economic environment • Consistent strong performance throughout all markets • Trading at a discount due to fearful market sentiment despite stronger fundamentals • Low risk play on economic recovery

28. Flat Performance, Currently at $60.64

29. Updates • New Environmentally Friendly Compacted Laundry Detergent Formula to join Future Friendly Portfolio of Products • P&G reaffirmed expected organic sales growth of 4-6% • P&G investing $1 billion over 5 years in China to develop research and manufacturing centers closer to consumers • Look for PG to beat analyst estimates and for the stock price to bump up