Qtr 4 2008-09 Haslam Fund Manager's Report.doc

1,480 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,480
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Qtr 4 2008-09 Haslam Fund Manager's Report.doc

  1. 1. TABLE OF CONTENTS EXECUTIVE SUMMARY.................................................................................................................................4 INVESTMENT THESIS....................................................................................................................................7 FUND PERFORMANCE METRICS...................................................................................................................8 Portfolio Gain/Loss Analysis.....................................................................................................................8 Portfolio Risk-Unadjusted Return*.........................................................................................................8 Risk Analysis.............................................................................................................................................8 Q4 Dividend Yield Analysis ......................................................................................................................8 Sector Allocation......................................................................................................................................9 .....................................................................................................................................................................9 INDIVIDUAL STOCK PERFORMANCE AND ANALYSIS..................................................................................10 Q4 TRANSACTION HISTORY.......................................................................................................................13 Q4 Dividends Received..........................................................................................................................13 Q4 Stock Dividends................................................................................................................................14 INDIVIDUAL STOCK SUMMARIES...............................................................................................................15 Consumer Discretionary........................................................................................................................15 John Wiley & Sons, Inc. (JWA)............................................................................................................15 Consumer Staples..................................................................................................................................15 Altria Group (MO)..............................................................................................................................15 Philip Morris International, Incorporated (PM).................................................................................16 Proctor and Gamble Company (PG)...................................................................................................16 Wal-Mart, Incorporated (WMT).........................................................................................................16 Energy....................................................................................................................................................17 Lufkin Industries (LUFK).....................................................................................................................17 Noble Corporation (NE).....................................................................................................................17 Valero Corporation (VLO)..................................................................................................................18 Financials...............................................................................................................................................18 American Capital Ltd. (ACAS).............................................................................................................18 Goldman Sachs Group (GS)................................................................................................................19 Visa, Incorporated (V)........................................................................................................................19 2
  2. 2. Healthcare.............................................................................................................................................19 Amgen, Incorporated (AMGN)...........................................................................................................19 Becton, Dickinson, and Company (BDX).............................................................................................20 Bristol-Myers Squibb Company (BMY)...............................................................................................20 Johnson & Johnson (JNJ)....................................................................................................................21 Novo Nordisk A/S (NVO)....................................................................................................................21 Pharmaceutical Product Development, Incorporated (PPDI).............................................................21 Industrials..............................................................................................................................................22 DryShips, Incorporated (DRYS)...........................................................................................................22 FedEx Corporation (FDX)....................................................................................................................22 General Electric Company (GE) .........................................................................................................22 Information Technology........................................................................................................................23 Accenture Ltd. (ACN) .........................................................................................................................23 Cisco Systems (CSCO) ........................................................................................................................23 Intel Corporation (INTC) ....................................................................................................................23 Materials................................................................................................................................................24 BHP Billiton, Ltd. (BHP)......................................................................................................................24 Celanese Corporation (CE).................................................................................................................24 ECONOMIC OVERVIEW..............................................................................................................................25 HASLAM FUND MANAGEMENT TEAM.......................................................................................................26 FUND CHARTER..........................................................................................................................................27 Addendum to Haslam Fund Charter......................................................................................................28 REFERENCES..............................................................................................................................................29 3
  3. 3. EXECUTIVE SUMMARY About the Cover “Un Dimanche Après-Midi à l'Île de la Grande Jatte” (“A Sunday Afternoon on the Island of la Grande Jatte”) is Georges Seurat’s 1884 landscape masterpiece, and one of the most famous examples of the pointillism movement. Pointillism focuses on the contrast of numerous painted dots which, through optical unification, are viewed together to form a single color. This masterwork provides ample commentary to the state of the current financial markets. When viewed from afar, it seems that the markets are poised for a strong (and early) recovery. However, when viewed up close, the granularity and contrast in the fundamentals may speak otherwise. The ability to assess the markets from a macro view while paying close attention to the details in fundamental quality is crucial to success as an investor. Results At the beginning of our tenure, October 1, 2008, the Haslam Torch Fund portfolio had a balance of $183,251.34 (at the close of trading on September 30, 2008). At the close of trading on September 30, 2009, the portfolio held $161,447.17, yielding a net loss of $21,804.17, or 11.90% through the fund’s 2008-2009 tenure. At the beginning of the fourth quarter, July 1, 2009, the portfolio held $140,322.76 (close of trading on June 30, 2009). The net gain for the fourth quarter was $21,124.41 or 15.05%. The S&P 500, our benchmark, returned 15.61% for the quarter, and had a net loss of 6.91% over our tenure (with dividends). On a non risk-adjusted basis, the fund has underperformed the S&P 500 by 4.99% for our tenure. On a risk adjusted basis, the fund has also underperformed the S&P 500. For further details, please refer to the “Risk Analysis” on page 5. Heaviest Weighted Sectors At the close of trading on September 30, 2009, the portfolio’s three heaviest weighted sectors, excluding dividends, were Healthcare (25.94%), Consumer Staples (19.07%), and Energy (12.87%). Least Weighted Sectors At the close of trading on September 30, 2009, the portfolio’s three least weighted sectors, excluding dividends, were Telecommunications (0.00%), Consumer Discretionary (2.15%), and Utilities (2.62%). Transactions On August 6, 2009 the fund liquidated its position in American Capital (ACAS), but the fund received a stock dividend of 49 shares from ACAS on August 7, 2009. On September 4, 2009 the fund liquidated its holdings in Vulcan Materials (VMC), Pinnacle Financial Partners (PNFP), and Amerigas Partners (APU). On September 9, 2009, the fund purchased 100 shares of BHP 4
  4. 4. Billiton (BHP) and 150 shares of NRG Energy (NRG). For complete transaction details, please refer to the Q4 Transaction and Individual Stock Summaries sections on page 11. 5
  5. 5. Best Performers Over our tenure, the three best performing stocks came from the Energy, Financials, and Healthcare sectors. They are: Visa (27.78%), Novo-Nordisk (25.90%), and Amerigas Partners (22.29%). The best performers over the fourth quarter came from the Industrial and Energy sectors. They were: General Electric (40.96%), FedEx (35.44%), and Lufkin (27.06%). Worst Performers Over our tenure, the three worst performing stocks came from the Industrials and Financials sectors. They are: DryShips (-80.19%), American Capital (-60.38%), and Pinnacle Financial Partners (-54.90%). In the fourth quarter, the fund’s three worst performing stocks came from the Financial and Healthcare sectors. They were: American Capital (-5.59%), Pharmaceutical Product Development (-4.87%), and Becton-Dickinson (-1.72%). 6
  6. 6. INVESTMENT THESIS With economic news turning in a positive direction this past quarter, investors are readying themselves for the economic expansion sure to follow as we exit the recession. In anticipation of accelerating equity markets, we have positioned the portfolio in a slightly more aggressive manner this past quarter, investing nearly all of the cash available to the fund. Our portfolio has already benefitted from the strong market recovery in the past quarter. We recommend that the incoming managers continue to shift investments to sectors likely to see the most immediate results as the economy slowly rights itself. Two additions were made to the portfolio in the fourth quarter in the form of NRG Energy Incorporated (NRG) and BHP Billiton Limited (BHP). NRG is a power generation wholesaler that primarily operates in the southern and northeastern United States. NRG owns brownfield and greenfield electicity producing assets, and is working on cleaner energy initiatives, including brownfield asset repowerings as well as a clean nuclear project expansion in Texas. There has been an uptick in existing home sales in many areas of the southwestern United States which shows that the economy is turning and the demand for power will be growing in NRG’s operating regions. BHP Billiton is a commodity producing conglomerate based in Australia. The managers decided to purchase BHP because they are one of the largest iron ore producers in the world and the company’s close proximity to China and India, which will benefit BHP through its ongoing mega-infrastructure projects. The managers believe that these two companies are well- positioned to prosper from the growth opportunities in their given markets. It is important to remember that even thought many economists have pronounced that the worldwide economy has reached a bottom, many fundamental problems remain in the economy. Perhaps most ominously, the U.S. unemployment rate remains uncomfortably high, signifying that domestic consumer demand will likely remain weak moving forward. For our tenure we held many low-beta, high dividend yield stocks, which provided cash flow and stability for the fund. As always, the fund remained committed to finding the best long term stocks by using fundamental analysis. 7
  7. 7. FUND PERFORMANCE METRICS Portfolio Gain/Loss Analysis Portfolio Gain/Loss for 4th Quarter Close of 9/30/2009 $161,447.17 Close of 6/30/2009 $140,322.76 Net Gain (Loss) for 2nd Quarter $21,124.41 Portfolio Gain/Loss for Tenure Close of 9/30/2009 $161,447.17 Close of 9/30/2008 $183,251.34 Net Gain (Loss) for Tenure ($21,804.17) Portfolio Risk-Unadjusted Return* Fourth Quarter Tenure Haslam Portfolio 15.05% -11.90% S&P 500 Index 15.61% -6.91% * Including Dividends Risk Analysis Fourth Quarter Tenure Haslam S&P 500 Haslam S&P 500 Beta .89529 1 .84255 1 Standard Deviation 1.692% 1.093% 2.456% 2.692% Sharpe (annualized) 2.15245 3.32201 -0.59320 -0.34261 Treynor (annualized) 0.77709 0.69395 -0.27830 -0.17619 Q4 Dividend Yield Analysis Dividend Yield* (%) Haslam Portfolio 2.43 % S&P 500 Index 2.05 % 8
  8. 8. * Annualized dividend yield Sector Allocation Sector Haslam Portfolio (%) S&P 500i (%) Consumer Discretionary 2.15% 9.20% Consumer Staples 19.07% 11.50% Energy 12.87% 11.70% Financials 7.80% 15.20% Healthcare 25.94% 13.10% Industrials 10.96% 10.20% Information Technology 9.53% 18.70% Materials 6.41% 3.50% Telecommunication Services 0.00% 3.20% Utilities 2.62% 3.70% Cash 2.65% - Total 100.00% 100.00% 9
  9. 9. INDIVIDUAL STOCK PERFORMANCE AND ANALYSIS Market Q4 Tenure Weight as Value as of Total Total Ticker of 9/30/09 9/30/09 Return Return Consumer Discretionary John Wiley & Sons, Inc. JWA 2.15% 3,478.00 5.02% 16.83% Total Consumer Discretionary 2.15% $ 3,478.00 Consumer Staples Altria Group, Inc. MO 2.21% 3,562.00 10.62% -3.78% Proctor and Gamble PG 7.18% 11,584.00 14.21% -14.48% Philip Morris International, Inc. PM 6.04% 9,748.00 12.98% 5.82% Wal-Mart Stores, Inc. WMT 3.65% 5,890.80 1.90% 0.23% Total Consumer Staples 19.07% $30,784.80 Energy Lufkin Industries, Inc. LUFK 3.29% 5,318.00 27.06% -31.72% Noble Corporation NE 7.05% 11,388.00 25.80% -13.13% Valero Corporation VLO 2.52% 4,071.90 15.69% -4.51% Total Energy 12.87% $20,777.90 Financials American Capital, Ltd. ACAS 0.10% 158.27 -5.59% 0.31% Goldman Sachs Group GS 3.43% 5,530.50 25.27% 13.79% Visa Corporation V 4.28% 6,911.00 11.17% 27.78% 10
  10. 10. Total Financials 7.80% $12,599.77 Market Q4 Tenure Weight as Value as of Total Total Ticker of 9/30/09 9/30/09 Return Return Healthcare Amgen, Inc. AMGN 7.46% 12,046.00 13.77% 1.62% Becton-Dickinson and Company BDX 4.32% 6,975.00 -1.72% 8.94% Bristol-Myers Squibb BMY 4.18% 6,756.00 12.41% 13.96% Johnson and Johnson JNJ 4.71% 7,611.25 8.06% -9.37% Novo Nordisk A/S NVO 3.90% 6,295.00 15.59% 25.90% Pharmaceutical Product Dev., Inc. PPDI 1.36% 2,194.00 -4.87% -45.61% Total Healthcare 25.94% $41,877.25 Industrials Dryships, Inc. DRYS 0.51% 828.75 14.71% -80.19% Fedex Corporation FDX 5.36% 8,650.30 35.44% -4.42% General Electric Company GE 5.09% 8,210.00 40.96% -13.02% Total Industrials 10.96% $17,689.05 Information Technology Accenture, Ltd. ACN 3.46% 5,590.50 5.05% 0.71% Cisco Systems, Inc. CSCO 3.65% 5,885.00 26.22% 4.34% Intel Corporation INTC 2.42% 3,914.00 19.09% 7.47% Total Information Technology 9.53% $15,389.50 11
  11. 11. Market Q4 Tenure Weight as Value as of Total Total Ticker of 9/30/09 9/30/09 Return Return Materials BHP Billiton BHP 4.09% 6,601.00 1.73% 1.73% Celanese Corporation CE 2.32% 3,750.00 5.43% -9.85% Total Materials 6.41% $10,351.00 Utilities NRG Energy Inc. NRG 2.62% 4,228.50 5.27% 5.27% Total Utilities 2.62% $ 4,228.50 12
  12. 12. Q4 TRANSACTION HISTORY Q4 Acquisition Date Company Ticker Shares Price Cost Basis* 9/9/2009 NRG Energy Inc NRG 150 $26.7787 -$4,016.81 9/9/2009 BHP Billiton BHP 100 $64.89 -6,489.00 Total 250 -$10,505.81 Q4 Liquidations Date Company Ticker Shares Price Cash Flow* 8/6/2009 American Capital ACAS 150 $2.9504 $442.56 9/4/2009 Vulcan Materials VMC 100 $48.543 4,854.30 9/4/2009 Pinnacle Financial Partners PNFP 300 $13.8913 4,167.39 9/4/2009 Amerigas Partners APU 100 $34.422 3,442.20 Total 650 $12,906.45 *not including transaction fees Q4 Dividends Received Issued Company Ticker Dividend 7/1/2009 FedEx Corporation FDX $12.65 7/10/2009 Philip Morris PM 108.00 7/10/2009 Altria Group MO 64.00 7/14/2009 John Wiley & Sons JWA 14.00 7/27/2009 General Electric GE 50.00 8/3/2009 Celanese CE 6.00 8/3/2009 Bristol Myers Squibb BMY 93.00 Issued Company Ticker Dividend 13
  13. 13. 8/7/2009 American Capital ACAS 2.72 8/17/2009 Proctor & Gamble PG 88.00 8/18/2009 Amerigas Partners APU 67.00 8/18/2009 Amerigas Partners APU 17.00 8/26/2009 Noble NE 28.24 9/1/2009 Visa V 10.50 9/1/2009 Intel INTC 28.00 9/8/2009 Wal-Mart WMT 32.70 9/8/2009 Johnson & Johnson JNJ 61.25 9/10/2009 Vulcan Materials VMC 25.00 9/10/2009 Lufkin Industries LUFK 25.00 9/16/2009 Valero Energy VLO 31.50 9/24/2009 Goldman Sachs GS 10.50 9/29/2009 Pharmaceutical Product Development PPDI 15.00 9/30/2009 Becton Dickinson BDX 33.00 Total Dividends $823.06 Transaction Fees -66.05 Interest Earned on Cash Held 0.19 Total Change in Cash $3,157.84 Q4 Stock Dividends Issued Company Ticker Dividend 8/7/2009 American Capital ACAS 49.00 Shares Total Stock Dividends 49 Shares 14
  14. 14. INDIVIDUAL STOCK SUMMARIES Consumer Discretionary John Wiley & Sons, Inc. (JWA) John Wiley & Sons, Inc. (“Wiley”) is a global leader in the publishing sector. It offers both print and electronic media resources ranging from scientific, technical, medical, and scholarly journals to trade books and educational materials for undergraduate and graduate students. In 2007, JWA acquired U.K.-based Blackwell Publishing, the world’s foremost academic and professional publisher. Other well-known JWA brands include the “For Dummies” series, the Frommer’s travel guides, and CliffsNotes study guidesii. Although the economy is improving slowly, unemployment remains a concern (as of September 18, 2009, there are 16 states with unemployment rates of 9.9% or higher)iii. This is especially true among professional and financial service companies, many of which have undergone wholesale employment reductions in an effort to bring costs in line with revenues. Many of the unemployed will be returning to school in order to increase their knowledge base and professional skills in order to gain a competitive edge in the job market. Wiley’s standing in the education and professional development market positions the company to take advantage of the large influx of students during the recession. JWA gained 5.02% over the quarter, and has a total return of 16.83% over our tenure. Consumer Staples Altria Group (MO) Altria Group is a holding company. Through its various subsidiaries, it holds a portfolio of companies that manufacturer tobacco for cigarettes and other tobacco products. It also holds an interest in a company that brews beer.iv Unpredictable stock price returns have led the Haslam management team to look for strong value plays within the market. With a $0.54 quarterly payout, MO has an annualized dividend yield of 7.64% (based on closing price on 9/30/09). The addictive nature of the MO’s portfolio will ensure that sales of its products will be sustainable, even in light of recent tax increases, litigation settlements, and possible FDA regulation. Good executive stewardship through the market downturn has paid off through solid returns on capital and free cash flow for investors. Additionally, the company has shown great confidence in its product lines, its position in the market, and its future prospects by buying back portions of its outstanding stock. Consumer confidence in MO has manifested as a 10.62% gain over the quarter. Additionally, MO’s addition of US Tobacco and John Middleton has expanded its market through smokeless tobacco and cigars (Middleton owns the popular brand of low-end cigar Black & Mild). Through a combination of market leadership, earnings stability, and a favorable dividend payout, we view MO as a firm hold moving forward. Over our tenure MO has returned a net loss of 3.78%. 15
  15. 15. Philip Morris International, Incorporated (PM) Philip Morris International is a tobacco producer whose spinoff from Altria Group (MO) was completed on March 28, 2009. It produces, markets, and distributes a wide range of branded cigarettes, including: Benson & Hedges, Marlboro, Merit, Parliament, and Virginia Slims. Philip Morris Int’l is currently the largest publically traded manufacturer and marketer of tobacco products. Its return was 12.98% over the fourth quarter, and 5.82% over our tenure. Owner of the world’s premier cigarette portfolio with 7 of the 15 leading cigarette brands, PM’s brands have a wide international appeal. PM is second only to China’s state-owned China National Tobacco in global market share, which operates in near-monopoly conditions in China. Even though PM has a presence in over 160 countries, managers assert that further market penetration in large markets such as India and Southeast Asia is possible, as the company looks to take market share from its smaller local competitors. Future growth prospects and stability due to the addictive nature of its products are reasons that PM is viewed as a firm hold in the portfolio. Proctor and Gamble Company (PG) Proctor and Gamble is the leading household products company with 146 brands operating in more than 180 countries. The Company provides products in the laundry and cleaning, paper, beauty care, food and beverage, and health care segments.v PG gained 14.21% over the quarter, but lost 14.48% over our tenure. PG maintains many of the category-leading brands through an innovative and expansive marketing initiative. The company was able to weather increasing commodities prices and hampered consumer spending power by strategic product pricing, cost saving programs, and increasing efficiencies in its operations, spearheaded by COO Robert McDonald, who has invigorated the company’s efforts towards operations. We believe that the company’s earnings stability, diverse and well-maintained portfolio, incorporation of newly acquired brands and product lines, and expansion into new markets instill confidence in its ability to generate strong value for its investors. We view PG as a hold for the Haslam fund. Wal-Mart, Incorporated (WMT) Wal-Mart is the largest retailer in the United States, operating discount stores, neighborhood markets, and supercenters. Their retail centers sell a range of goods, from apparel, small appliances, electronic goods, auto parts, hardware, as well as a full grocery store. WMT also has an international presence, operating over 3,600 stores internationally. WMT returned 1.90% over the fourth quarter and gained 0.23% over our tenure. Although the economy is improving, and many economists believe that we have moved past the recessionary period, we believe that consumers will still feel economic pressure, with employment uncertainty, and purchasing power reductions. Many consumers will trade down from higher-priced competitors and shop at WMT stores, due to their discount pricing strategy, and one-stop shopping convenience. Additionally, WMT also brands and sells its own grocery goods under the labels Sam’s Choice and Great Value. 16
  16. 16. Analysts believe that WMT still has room to grow within the domestic market, and will be able to increase its footprint with even more stores along the west coast, the northeast, and within many major metropolitan areas. Expansion into Central and South America has proven successful and has presented many opportunities for the firm. Foreign expansion will be even more prevalent in the near term if the recession proves to be mild. With much to gain from the contraction in household wealth, and constantly improving margins through its supply chain and operations initiatives, relationships with its numerous suppliers, and ability to create demand for its own branded products, we find WMT to be a good play for consumer staples during a slow recovery, and believe that the firm will provide great growth for the fund as the economy begins to accelerate. Energy Lufkin Industries (LUFK) Lufkin Industries designs, engineers, manufactures, sells, installs and services high quality and high value-added oil field equipment and power transmission products across the globe.vi It designs, manufactures, sells, refurbishes, services, and automates standard conventional “Mark II” and other rod lift pumping units that are used to extract oil from wells. It also provides engineering consulting and solutions for field equipment and transmission products worldwide. LUFK gained 27.06% over the fourth quarter but lost 31.72% over our tenure. EIA expects the price of West Texas Intermediate (WTI) crude oil to average about $70 per barrel this winter (October-March), a $19 increase over last winter. The forecast for average WTI prices rises gradually to about $75 per barrel by December 2010 as U.S. and world economic conditions improve.vii Currently, domestic inventories are unusually high, but analysts are expecting a rebound in demand through the second half of 2009, easing pressure on crude prices. Additionally, we believe that recent activity from OPEC, including a considerable production pullback will see some invigoration in oil and gas exploration and production companies, which will benefit LUFK as we see more capital expenditure in exploration and production, especially from domestic companies, maintaining our hold position in LUFK. Noble Corporation (NE) Noble Corporation is a leading provider of diversified services for the oil and gas industry. The Company performs contract drilling services with its fleet of 63 mobile offshore drilling units located in key markets worldwide, including the U.S. Gulf of Mexico, Middle East, Mexico, the North Sea, Brazil, West Africa and India.viii NE also provides labor contract drilling services, well site and project management services, and engineering services.ix The recent quarter saw some modest recovery in commodity prices, with oil rebounding back to the $70-75/bbl range. The discovery of huge deposits off of the coast of Brazil has played into NE’s favor. NE, the operator of one of the best-maintained deep-water drilling fleets, is heavily integrated into Petrobras’s production plans with $9.6 billion in secure contract backlog through 2016. With $2 billion in additional contract backlog, we view that NE’s room for stock price growth makes the stock a strong hold in the portfolio. NE returned 25.80% in the fourth quarter but lost 13.13% over our tenure. 17
  17. 17. Valero Corporation (VLO) Valero is the largest oil refiner in North America, one of the largest independent U.S. refined petroleum products retailers, and operates refineries that can process sour and acidic crude oils.x In its first full quarter in our portfolio, VLO returned 15.69%, but lost 4.51% over our tenure. Just a year ago, oil prices were climbing steadily to a July 2008 peak of over $147/bbl. Since then, demand for oil has precipitated a drop of 77%, and a V-shaped recovery (Front Month NYMEX crude futures were priced at$71.77 on October 1, 2009).xi However, the oil bubble helped push through legislation that would lead to a mandate for increased “clean” energy alternatives to oil – namely in the form of ethanol. VLO moved into the ethanol industry with the $477 million acquisition of seven ethanol plants from bankrupt VeraSun. The plants that VLO acquired are flexible – mirroring its high-fidelity, flexible crude processing facilities – and are able to process multiple inputs, including cellulose from tree bark, switchgrass, corn, etc. The second Bush Administration pushed for an increase in the ethanol mandate from 7.5 billion gallons by 2012 to 35 billion by 2017. Although it is uncertain that the high mandate will be upheld by the current Obama Administration, the President has made it clear that alternative fuels and initiatives to reduce reliance on foreign oil will be maintained at a high level. With current government projects, funding, and mandates pushing ethanol production, as well as the need to reduce foreign-sourced oil, we believe that VLO is strategically position in a manner to benefit and produce great yields for the Fund. With currently low oil demand, and low levels of production from domestic oil fields, we believe that VLO is a great growth play in the energy sector. Financials American Capital Ltd. (ACAS) American Capital Ltd. is an alternative asset manager. The Company, directly and through its global asset management business, invests in employee and management buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides debt and equity to fund growth, acquisitions, recapitalizations, and securitizations. The Haslam fund managers made the decision to liquidate the fund holding in ACAS on August 6, 2009. The managers felt that ACAS was in jeopardy of having to file bankruptcy after the company reported dismal second quarter 2009 operating results. The company recorded a loss for the last 4 quarters reported and is facing pressure from creditors who had accelerated $393 million in privately placed notes.xii On August 7, 2009 the fund received 49 shares of ACAS as a dividend from the company. Since receiving the 49 shares ACAS has entered in to forbearance agreements with creditors and has sold two businesses for a combined $517 million sales price and gains of $66 million over purchase price, somewhat easing bankruptcy fears.xiii,xiv,xv The managers decided to hold the 49 shares because the downside risk is so limited due to low share price and tax implications. The 49 shares had a value of $157.58 when the fund received them. With such a limited downside and conceptually unlimited upside the managers have decided to hold the 49 shares and will continue closely monitor the firm. 18
  18. 18. Goldman Sachs Group (GS) Goldman Sachs is one of the world’s foremost investment banking and securities companies. It specializes in investment banking, trading and principal investments, asset management and securities services. On September 21, Goldman changed its business structure into a bank- holding company. GS enjoyed a very strong quarter, appreciating in price by $36.91 per share, or 25.27% dividend adjusted. For our tenure GS has appreciated by 13.79% dividend adjusted. The strong quarter was spurred by the reporting of strong earnings for the second quarter of 2009 and forecasts that the firm is on pace to earn $2.3 billion in the third quarter of 2009.xvi The consolidation in the investment banking market, shrewd trading strategies and GS’s repayment of TARP funds have positioned the company to continue to post strong profits in the short term. The managers see GS a solid holding for fund. The company has seen strong performance as the country has fought and recession and is in great position to take advantage of future economic growth. The stock price has seen a significant run up in value, but still has room for further advancement. Visa, Incorporated (V) Visa Inc. operates a retail electronic payments network and manages global financial services. The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities. Visa enjoyed a strong quarter closing at a quarterly high of $74.41 on September 22, 2009, before retreating to close at $69.11 on September 30, 2009. For the quarter Visa appreciate by 11.17% and enjoyed appreciation of 27.78% for our tenure. Visa has seen strong performance during our tenure led by increased use of Visa branded debit cards that has offset the decrease in credit card usage. The increase in debit card usage has kept Visa’s total transactions numbers moving a in a positive direction.xvii The biggest concern facing Visa is the threat of constant legal action, as illustrated by the fine recently levied by the Hungarian anti-trust organization, and the recent petitions submitted to the U.S. congress asking them to investigate anti-trust action against Visa.xviii The managers feel that V is a very strong company with a great business model and is in a strong position for the future. The managers will closely monitor any legal action taken against V, but as the economy turns V should continue to be a solid holding with great potential. Healthcare Amgen, Incorporated (AMGN) Amgen specializes in the development, manufacture, and delivery of human therapeutics based on advances in cellular and molecular biology. Focusing on ground-breaking treatments for more serious illnesses, AMGN offers a range of products treating diseases from rheumatoid arthritis to cancer. 19
  19. 19. Despite having difficult fiscal quarter, AMGN gained 13.77% in the fund’s fourth quarter. Revenue declined 1% to $3.7 billion with negative foreign exchange impacts. Total product sales decreased 2%, dragged down by Aranesp, which fell 16% from the second quarter of 2008. The company saw mixed results of its premier pipeline drug, demosumab. The drug, used to treat osteoporosis, was shown to be more effective than its competitor, Novartis’ Zometa. Although it continues to show positive Phase 3 results, demosumab continues to draw scrutiny from FDA advisory panels regarding its use to treat osteoporosis in bone cancer patients. We still view AMGN as a hold for the near-term but cautiously view the company’s future. The company’s future rests largely on the success of demosumab. An FDA approval is necessary to boost revenues as AMGN stands to lose revenue from its dialysis therapy drug Epogen. New Medicare payment rules will likely curb use of Epogen, which accounts for 17% of AMGN’s revenues.xix AMGN gained 1.62% over our tenure. Becton, Dickinson, and Company (BDX) Becton, Dickinson and Company (BDX) manufactures and sells a variety of medical supplies and devices and diagnostic systems. The company’s products are used by healthcare professionals, medical research institutions, and the general consuming public. Foreign exchange negatively impacted BDX’s quarterly earnings. The company saw revenue fall 1.6% to $1.82 billion. Without the impact of foreign exchange, revenues would have increased 5%. The medical and biosciences segments were down 3% and 4% respectively. BDX’s diagnostics revenues rose 2%, buoyed by demand for cancer diagnostics and fly testing products. BDX received an order for $52 million worth of flu-related products from the U.S., as government officials ramped up its H1N1 immunization campaign. The order will continue through 2010. Despite this positive news, our holding in BDX lost 1.72% for the fourth quarter We also view BDX as a firm hold for the future. Berkshire Hathaway has been slowly buying up the company’s stock, holding approximately 1.2 million shares as of June 30, 2009. The company is well-diversified and will face minimal, if any, negative impact from stricter FDA testing guidelines for medical devices.xx BDX has gained 8.94% over our tenure. Bristol-Myers Squibb Company (BMY) Bristol-Myers Squibb is a multi-faceted healthcare company, specializing in the development, manufacture, and distribution of various pharmaceutical products worldwide. Its product offering includes well-known drugs such as Plavix and Erbitux. BMY was a bright spot in our healthcare holdings. The stock gained 12.41% in the fourth quarter as BMY’s fiscal second quarter revenues increased 3.5% to $5.4 billion. Profit rose 36% as the company successfully implemented cost-cutting measures and sales of Abilify and Plavix continued to increase. BMY announced it will acquire Medarex for $2.4 billion. The acquisition is a strategic move to increase BMY’s presence in the cancer-treatment sector and will help to offset revenue losses when BMY loses patent protection on Plavix in 2012. BMY is a firm hold for the portfolio at this time, as the company has been active in finding alternative revenue sources to replace Plavix revenues. Additionally, the company has less exposure to overseas markets (only one-third of its revenue), so foreign exchange effects have had minimal impact on earnings.xxi For our tenure, BMY has gained 13.96%. 20
  20. 20. Johnson & Johnson (JNJ) Johnson & Johnson manufactures healthcare products and provides related services for the consumer, pharmaceutical, and medical devices and diagnostics markets. The company sells products such as skin and hair products, acetaminophen products, pharmaceuticals, diagnostic equipment, and surgical equipment in countries throughout the world. JNJ’s second quarter profit fell 3.6% as the company struggled to compete against generic and private label brands. EPS estimates beat earnings estimates, however, as sales of Listerine, Neutrogena, and JNJ’s artificial hips offset some revenue losses. Revenue was down 7.4% to $15.24 billion as sales of Risperdal and Topamax, unable to compete with generic drugs, dropped by a combined $1 billion. For the fund’s fourth quarter, JNJ saw an 8/06% return, We continue to view JNJ as a hold for the portfolio. The company remains flush with cash, even after announcing two large acquisitions of Elan Corporation (for Alzheimer’s treatment) and Crucell NV (vaccine producer) to diversify company holdings. Additionally, the company’s artificial hips sector continues to perform well, as an FDA advisory panel approved for use a ceramic-on-metal hip replacement, the first of its kind in the United States.xxii The stock lost a cumulative 9.37% over our tenure. Novo Nordisk A/S (NVO) Novo Nordisk A/S (NVO) develops, produces, and markets pharmaceutical products. The company focuses on diabetes care and offers insulin delivery systems and other diabetes products. Novo Nordisk also works in areas such as haemostatis management, growth disorders, and hormone replacement therapy. Another bright spot in the healthcare sector, NVO saw second quarter earnings rise 21% driven by sales of its expensive hormone insulin products. Overall sales increased 17%, boosted by demand for Levemir and NovoRapid. Demand for NVO’s insulin products grew after a competing drug, Sanofi’s Lantus was linked to cancer. The company also increased its share repurchase program by an additional DK 500 million. A strong quarter for NVO resulted in a 15.59% increase in the fund’s fourth quarter. Demand for NVO’s insulin products remains strong, and we continue to view the stock as a hold for the portfolio. We are monitoring the progress of the company’s Phase 3 drug, Liraglutide. The drug has shown positive results in clinical trials, especially among African Americans, but the FDA announced it will delay its ruling on the drug until the fourth quarter. Liraglutide is currently sold in Europe as Victoza.xxiii Overall, NVO has gained 25.90% over our tenure. Pharmaceutical Product Development, Incorporated (PPDI) Pharmaceutical Product Development is a leading global contract research organization providing discovery, development, and post-approval services as well as compound partnering programs. Working with pharmaceutical, biotechnology, medical device, academic, and government organizations, PPDI applies innovative technologies to deliver safe and effective therapeutics to patients. In its fiscal second quarter, PPDI’s revenues fell $50 million to $355.2 million. Revenue losses in the development segment were partially offset by revenue gains in PPDI’s discovery sciences’ 21
  21. 21. segment. The second quarter also marked the beginning of new royalties from PPDI’s drug Prilogy in Europe. Our holding lost 4.87% in the fourth quarter. We will continue to hold PPDI in the portfolio for the near future. Despite losing 45.61% during our tenure, we remain upbeat on the company. PPDI recently opened a new central lab facility in Singapore to better service its pharmaceutical clients in Asia, a fast-growing area of clinical research. At the quarter’s end, new business authorizations were $465.9 million, contract cancellations totaled $212.9 million, and the backlog stood at $3.2 billion.xxiv Industrials DryShips, Incorporated (DRYS) DryShips, Incorporated is a dry bulk shipping company, operating a fleet of 42 vessels worldwide. It ships commodities used in production of other products, such as bauxite or coal. DRYS earned a reasonable return of 14.71% this quarter, but over the entire term of our investment it has yielded a significant loss for the portfolio of -80.19% DRYS posted a slightly better than expected earnings report for the quarter ending in June, with the results partly driven by stimulus-related demand for Chinese steel.xxv One factor leading to this stock’s poor performance is the Baltic Dry Index, the measure of the daily spot rate for dry bulk shipping capacity, which is still down 80% from its peak in June 2008.xxvi We have held on to this stock primarily because so much value was lost on it during the first month of our tenure that there was very little left to recover or lose on it. FedEx Corporation (FDX) FedEx Corporation is primarily known for its established U.S. and international package and freight delivery services. The company also has a significant IT segment, offering supply chain and office solutions to businesses. FDX was one of the best stocks in our portfolio this quarter, appreciating by 35.44% during the period. It returned a loss of 4.42% over our tenure. The company earned $0.58 per share in the quarter ending August, and CEO Alan Graf predicted that the company would see year-over-year growth in the domestic package business moving forward.xxvii FDX has benefitted from decreased fuel costs as the economy slowed, and was aggressive in cost cutting this past year. We continue to feel FDX is the strongest company in the profitable third party logistics industry. General Electric Company (GE) General Electric Co. is a large industrial conglomerate, encompassing significant segments in the media, energy infrastructure, technology infrastructure, and financial sectors. GE performed very well for our portfolio this quarter, increasing in value by 40.96%. Over our term, however, the stock has lost much of its value, declining -13.02%. Nearly all of the decline in GE’s value is attributable to the performance of GE Capital, its financial division, which might see losses and impairments on its portfolio as high as $13 billion this year.xxviii There is 22
  22. 22. also the possibility that new government regulations may require GE to spin off GE Capital, though this is looking less likely to occur. GE still stands to gain from increased investment in energy production through government stimulus spending, as it produces 50% of new wind turbines installed in the U.S.xxix Information Technology Accenture Ltd. (ACN) Accenture is a consulting and information technology firm covering a wide array of business functions. Its largest segment is management consulting, but ACN also offers IT consulting, financial solutions, outsourcing and risk management. ACN performed strongly this past quarter, earning a return of 5.05% over the period, and a return of 0.71% over our tenure. ACN announced restructuring this quarter to reduce unneeded real estate and cut executive workforce by 7%, moves aimed to cut costs in a tough economic environment.xxx Towards the end of September, a major acquisition in the business services industry occurred, as Xerox purchased Affiliated Computing Services.xxxi This signaled to investors that the sector was undervalued, and ACN’s stock price appreciated 4.9% on the news. ACN saw a decline in revenues from consulting, as companies cut back on new project spending. This decline was offset by increases in outsourcing revenue, showing that ACN’s services continue to be in demand as companies attempt to cut costs during the recession. Going forward, we expect this stock to perform very well as demand for its consulting services return with the recovering global economy. Cisco Systems (CSCO) Cisco Systems is a technology company focusing on the hardware necessary to connect computers via Internet protocols. This includes routers, switches, servers, modems, and network storage devices. The company has also moved towards developing and selling teleconferencing technology and services to business customers. Our CSCO holding performed very well over the quarter, appreciating in value by 26.22%, and yielding a return of 4.34% over our tenure. CSCO CEO John Chambers stated in August and again in September that he feels the economy has started its recovery, and the rate at which CSCO receives orders has increased over the past quarter.xxxii Results for the quarter ending in July show an adjusted income of $0.31 per share, down from the previous year but still exceeding analyst expectations.xxxiii We feel CSCO’s switches, routers, and servers are likely to continue benefiting from the increased amount of services that are becoming available through internet networking. We have been cautiously observing the company’s forays into lower-priced home and office video conferencing products. Intel Corporation (INTC) Intel Corporation manufactures and sells the microprocessors used in personal computers. Its chips can also be found in industrial equipment, digital music players, and flash memory devices. 23
  23. 23. Our shares in INTC appreciated well this quarter, earning a return of 19.09%. It has returned 7.47% over our tenure. Earnings for the quarter ending June exceeded analyst estimates, with adjusted income of $0.18 per share. There is some controversy over whether the increased chip sales are being driven by inventory restocking or a genuine rebounding in end user demand.xxxiv The company appealed the record $1.45 billion fine levied on it by EU anti-trust regulators.xxxv This appeal process may take up to two years. Overall, INTC remains the dominant player in the chip fabrication industry, and we feel its impressive R&D expenditures make it very unlikely any competitor will be able to overtake this position. Materials BHP Billiton, Ltd. (BHP) BHP Billiton Limited is an international resources company headquartered in Australia and the United Kingdom. The company’s primary customer sector groups include mineral exploration and production of coal, iron ore, gold, titanium, ferroalloys, nickel, and copper concentrate, as well as petroleum exploration, production, and refining. In September, we voted to purchase 100 shares of BHP to further diversify the portfolio. Macroeconomic signals indicate that emerging markets may be a driver in the global economic recovery, particularly growth in China. BHP operates in the entire value chain of aluminum steel production and is geographically well-positioned to serve the BRIC countries. Additionally, BHP has made a significant investment in potash reservoir in Canada to take advantage of the growing global demand for fertilizer. BHP is a highly diversified conglomerate, and we believe it is a strong addition to the portfolio and will offer positive growth both in the near and long terms. The stock has returned 1.73% since our investment. Celanese Corporation (CE) Celanese Corporation is a global industrial chemicals company. Its business involves processing chemical raw materials, such as ethylene and propylene, and natural products, including natural gas and wood pulp, into chemicals and chemical-based products. CE price appreciated by 5.43% for quarter, but for our tenure the stock decreased in value by 9.85%. CE’s price appreciation for the quarter was driven by better than expected earnings for the second quarter of 2009. While CE saw a decrease in earnings per share from $.80 a share to $.66 from same period in the previous year, these results exceeded Wall Street estimates.xxxvi Forecasts of the U.S. economy reaching a bottom from fellow chemical industry players also provided a boost for the stock.xxxvii The managers feel that CE is well placed to see strong price appreciation as the economy comes off of the bottom. To prepare for the possible future economic growth CE has announced that it will raise prices on several chemicals effective October 1st, to combat the slim margins that have recently plagued the company.xxxviii CE should produce strong results in the future and the fund is well positioned to benefit from this. 24
  24. 24. ECONOMIC OVERVIEW The final quarter of our tenure brought mixed economic results. The September FOMC meeting revealed some hope for the U.S. economy, but the Board of Governors kept the Federal Funds Target at 0.00-0.25%, remarking that the recovery will “take some time.”.xxxix The government’s “Cash for Clunkers” proved successful in stimulating automotive demand, so much so, that in early August, legislators had to scramble to pump an additional $2 billion into the program to keep it afloatxl. Automobile sales reached their highest point of 2009 and fueled a 2.7% increase in retail sales for the month of August. Excluding autos, retail sales saw a 1.1% increase.xli Employment data continued to buck the upward stock market trends. At the end of September, unemployment stood at 9.8%, a level not seen since 1983. Non-farm payrolls fell 301,000, 201,000, and 263,000 in July, August, and September, respectively. September’s numbers were much worse than forecast. Since December 2007, payrolls have fallen by 7.2 million.xlii The Bureau of Labor Statistics released an employment summary stating that the number of job openings in the U.S. stood at 2.4 million, down 50% from June 2007.xliii After promising numbers in August, consumer confidence fell from 54.5 to 53.1 as consumers continued to worry about the American labor market. Additionally, the CPI jumped 0.4% in August after holding steady in July. Spikes in energy prices (up 4.6%) contributed to the unexpected increase. Core inflation, however, held steady at 0.1%.xliv Housing and manufacturing reported relatively weak but steady results. The ISM Manufacturing Index stood at 52.6 for September, only minimally changed from its July level of 52.9. Economists had expected 53.5. August new home sales increased a less-than-forecast 429,000 while the median new home price fell 9.5% to $195,200. Although the housing numbers have remained relatively steady, analysts remain concerned about the upcoming end to the $8,000 first-time homebuyer tax credit. If the program is not renewed, demand for homes may decrease.xlv Our final quarter as fund managers also saw a new precedent set in international banking. In August, the U.S. Justice Department and Internal Revenue Service reached an agreement with Swiss-based UBS regarding its “ultra-secret” banking practices. UBS agreed to release the 4,450 names of American account holders suspected of tax evasion, the first “breach” of the secretive Swiss banking community. Almost immediately, UBS experienced the outflow of many of its larger accounts, both American and non-American.xlvi 25
  25. 25. HASLAM FUND MANAGEMENT TEAM Emily M. Edwards Emily Michelle Edwards is a native Tennessean who graduated in 2007 from Washington and Lee University with a degree in Economics. Her internship experience includes two summers with Duncan-Williams, a Memphis-based fixed income broker dealer. She is currently a graduate assistant with the Finance Department at the University of Tennessee. Jonathan K. Epperson Jonathan Kent Epperson is a native Ohioan. He was a member of the NCAA men’s Division I soccer program at the Houston Baptist University, where he graduated with degrees in Business Administration and Finance. He is a former wealth management and investment analyst at Merrill Lynch and is currently studying Finance and Logistics. Thomas P. Newman Thomas Perry Newman a native of Chicago, Illinois. He graduated from the University of Illinois at Urbana-Champaign with a degree in humanities. He is a former recruitment manager with Alcoa Inc. He is currently studying Finance and Logistics. Michael T. Schachleiter Michael Tod Schachleiter is a native of Cincinnati, Ohio. He graduated Magna Cum Laude from Lees-McRae College, where he was a member of the men’s intercollegiate basketball team. He is a former commercial financial analyst with Fifth Third Bank in Cincinnati, Ohio, and is studying Finance and Marketing. 26
  26. 26. FUND CHARTER The Haslam Fund is a long-equity fund actively managed for our client, Mr. James Haslam. As fund managers, we strive for the proper stewardship of our client’s funds as well as the long-term capital appreciation for the fund. We aim to maximize portfolio performance by making investment decisions founded on strong fundamentals, selecting companies with solid financials, sound operational conditions, and tolerable risk levels. In light of current market conditions, we have chosen to approach security selection using a top-down approach, assessing the economy and market conditions before proceeding to select individual companies. Thus, we measure risk: systematic risk in terms of beta; and total risk in terms of standard deviation. Returns to our client’s funds will be measured against the returns of the market – in our case, the Standard and Poor’s 500 Index. Returns against the S&P 500 will be assessed on an absolute, positive basis, in line with our objective of maximizing the returns on our client’s funds. The management team will operate under the following conditions: (1) decisions leading to the acquisition or liquidation of assets must be made on a majority basis, in that 3 out of the 4 managers must be in agreement; (2) in the case of a dissenting opinion, the dissenting manager(s) may prepare a case as to why they disagree, leading up to a second vote; (3) the second vote must maintain a three-fourths vote in order to proceed with the acquisition/liquidation; (4) during the academic term, mandatory meetings will be held weekly; (5) during academic recess (holidays and summer breaks), the group will meet weekly via videoconferencing, conference calls, Internet chat discussion, however the conditions may allow; (6) in the case of an emergency liquidation scenario, a manager may discuss the proper course of action with faculty advisor Dr. Deborah Murphy as they disseminate essential information to the other managers. The Haslam management team maintains a long-term perspective in decision-making. As a team, we are unified in our decision-making, and believe that our asset selection process is based on sound fundamentals, which will translate into long-term capital appreciation for our client. With the greatest respect and dedication, ____________________________ ____________________________ Emily M. Edwards Thomas P. Newman ____________________________ ____________________________ Jonathan K. Epperson Michael T. Schachleiter 27
  27. 27. Addendum to Haslam Fund Charter This Addendum to the Haslam Torch Fund Management Charter ("Addendum") is entered to confirm proper meeting practices, which were unforeseen during initial drafting. Words and terms have the same meaning in this Addendum as in the Charter. Provisions Added March 4, 2009: 1. In the case of an advanced-notice absence from a meeting that involves a transaction vote, the absent member must send his or her vote along with substantive rationale to the team members no sooner than 12 hours before the start of the meeting. 2. During meetings with a transaction event, the manager who proposed the transaction will document the reasons and risks behind the purchase or liquidation of stock, thus capturing the thesis behind the transaction. 28
  28. 28. REFERENCES 29
  29. 29. i http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_500/2,3,2,2,0,0,0,0,0,1,11,0,0,0,0,0.html ii John Wiley Investor Relations Website iii Monthly Unemployment Rates for States, Monthly Rankings, Seasonally Adjusted; August 2009. Retrieved on October 12, 2009 from http://www.bls.gov/web/laumstrk/ iv Altria Group Website. Retrieved on January 5, 2009 from http://www.altria.com/. v Proctor and Gamble. Bloomberg Analytics. Retrieved on January 7, 2009 vi Lufkin Industries. Retrieved on January 4, 2009 from http://www.lufkin.com/. vii Short Term Energy and Winter Fuels Outlook. U.S. Department of Energy. Retrieved on October 8th, 2009 from http://www.eia.doe.gov/emeu/steo/pub/contents.html. viii Noble Corporation: Investor Relations. Retrieved on January 5, 2009 from http://phx.corporate-ir.net/phoenix.zhtml? c=98046&p=irol-irhome. ix Noble Corp. Bloomberg Analytics. Retrieved on January 7, 2009. x Standard and Poors. xi The Energy Information Administration. Official Energy Statistics of the U.S. Government: International Energy Price Information – Crude Oil. Accessed from http://www.eia.doe.gov/emeu/international/prices.html#Crude on July 12, 2009. xii http://www.reuters.com/article/marketsNews/idAFN1644022120090916?rpc=44 xiii http://finance.yahoo.com/news/IAC-to-pay-80M-for-People-apf-1828932187.html?x=0&.v=1 xiv http://finance.yahoo.com/news/American-Capital-sells-apf-1832060732.html?x=0&.v=1 xv http://finance.yahoo.com/news/American-Capital-Receives-182-prnews-1234375226.html?x=0&.v=1 xvi http://www.marketwatch.com/story/goldman-may-earn-23-billion-in-quarter-analyst-2009-09-18?siteid=yhoof xvii http://www.thestreet.com/_yahoo/story/10598135/1/visas-debit-card-usage-spikes.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA xviii http://www.foxbusiness.com/story/markets/industries/finance/visa-mastercard-fined-hungary/ xix Bloomberg LP xx Bloomberg LP xxi Bloomberg LP xxii Bloomberg LP xxiii Bloomberg LP xxiv Bloomberg LP xxv Dryships Squeaks Past Estimates. Retrieved on 10/6/09 from http://www.thestreet.com/_yahoo/story/10559000/1/dryships-squeaks-past-estimates.html? cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA xxvi Baltic Dry Index Chart. Retrieved on 10/6/09 from http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND xxvii Fedex 1Q Profit Falls, Sees Improving Economy. Retrieved on 10/6/09 from http://finance.yahoo.com/news/FedEx-1Q- profit-falls-sees-apf-1099751800.html?x=0&.v=16 xxviii GE Says GE Capital Improving, Bad Loans to Linger. Retrieved on 10/6/09 from http://finance.yahoo.com/news/GE- says-GE-Capital-improving-apf-1771080025.html?x=0&.v=16 xxix GE to Manufacture Offshore Wind Turbines. Retrieved on 10/6/09 from http://www.alternative-energy-news.info/ge-to- manufacture-offshore-wind-turbines/ xxx Accenture Streamlines Real Estate and Realigns Workforce to Position Company for Future Growth. Retrieved on 10/5/09 from http://finance.yahoo.com/news/Accenture-Streamlines-Real-bw-3403553560.html?x=0&.v=1
  30. 30. xxxi Xerox to Buy ACS to Expand back Office Services. Retrieved on 10/5/09 from http://finance.yahoo.com/news/Xerox-to- buy-ACS-to-expand-rb-1225165860.html?x=0&.v=9 xxxii Cisco CEO Optimistic About the Economy. Retrieved on 10/6/09 from http://blogs.wsj.com/digits/2009/09/23/cisco- ceo-optimistic-about-the-economy/ xxxiii Cisco Shares Stage Comeback. Retrieved on 10/6/09 from http://www.marketwatch.com/story/cisco-reports-46-net-fall- sees-tipping-point-2009-08-06?siteid=yhoof xxxiv Intel Rallies on Results, Upbeat Outlook. Retrieved on 10/6/09 from http://www.marketwatch.com/story/intel-rallies- on-results-upbeat-outlook?pagenumber=1 xxxv Intel on Offensive in EU Case. Retrieved on 10/6/09 from http://news.bbc.co.uk/2/hi/technology/8270035.stm xxxvi http://finance.yahoo.com/news/Celanese-2Q-profit-falls-but-apf-4223344346.html?x=0&.v=1 xxxvii http://www.fool.com/investing/general/2009/07/31/dow-chemical-calls-us-economys-bottom.aspx xxxviii http://finance.yahoo.com/news/Celanese-raises-prices-on-apf-2651755805.html?x=0&.v=1 xxxix Bloomberg LP xl http://abcnews.go.com/GMA/story?id=8218841&page=1 xli Bloomberg LP xlii Bloomberg LP xliii http://www.bls.gov/news.release/jolts.nr0.htm xliv Bloomberg LP xlv Bloomberg LP xlvi http://www.marketwatch.com/story/some-ubs-clients-reportedly-to-face-us-charges-2009-08-19

×