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April 6th , 2010
Investment Challenge
Brant Rumpel
John Brodsky
Mike Rennie
• Account Value (CAD) 108,916.24*
• Overall Return +8.91%*
• 5th place in “the game”
*Investopedia
How did we
do this?
No, we had
a plan.
Canada
Invest in what
does best.
What does
do best?
Natural Resources
Banking
Canada rated world’s soundest
bank system: Survey
U.S. And U.K. Sink in
World Economic Forum rat...
Long term
Buy and hold
Total Transactions: 13
What methods
did we use?
• Qualitative
• Quantitative
How did we
pick our
stocks?
Our Strategies
• Buy and hold
• Diversification
• Safe investments
• Well run companies
• Good track record
• Long term need
Qualitative
Choosing Stocks
• Speculation
• Sharpe Ratio
• C.A.P.M
• Historical Trend
Quantitative
Choosing Stocks
Choosing Energy Stocks
Compare Sharpe Ratios of:
• Canadian Natural Resources (CNQ.TO)
• Encanna Corporation (ECA.TO)
• Su...
Short Sale & Margin Buy
Margin
Use C.A.P.M to compare:
• Saputo
• ?
• ?
Short
Use C.A.P.M to compare:
• Telus
• ?
• ?
How did we
execute this
plan?
Execution
18%
9%
13%
40%
20%
Sector Diversification (by value)
Industrials
Financial
Consumer Staples
Energy
Telecommunica...
9%
9%
13%
9%
6%9%
9%
9%
5%
9%
8% 5%
Overall Contribution to Portfolio (by value)
TD Bank
Potash Corp.
Canadian Natural Res...
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
13.36%
15.89%
6.29%
30.46%
8.46%
6.76%
3.11%
8.92%
-4.04%
4.4...
What were
our top
performers?
Best Performers
Bridgewater Systems
Percent Change
+30.46%
Best Performers
Potash Corporation
Percent Change
+15.89%
Best Performers
Toronto Dominion Bank
Percent Change
+13.36%
Worst Performer
Canada Bread
Percent Change
- 4.04%
How did we
compare
to the market?
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
1 6 11 16 21 26
PercentageReturn Our Portfolio vs. TSX vs. Risk Free Investmen...
Conclusion
• Outperformed the market (by .53%)
• Qualitative measures are important
• Canadian strengths
Thanks
for listening
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Investment Challenge

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The slide show for the final Investment Challenge presentation for Comm. 367 on April 6th 2010.

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Investment Challenge

  1. 1. April 6th , 2010 Investment Challenge Brant Rumpel John Brodsky Mike Rennie
  2. 2. • Account Value (CAD) 108,916.24* • Overall Return +8.91%* • 5th place in “the game” *Investopedia
  3. 3. How did we do this?
  4. 4. No, we had a plan.
  5. 5. Canada Invest in what does best. What does do best?
  6. 6. Natural Resources Banking Canada rated world’s soundest bank system: Survey U.S. And U.K. Sink in World Economic Forum rating Rob Taylor, Reuters Published: Thursday, October 09, 2008 Natural ResourcesWorld class deposits of: • Potash • Uranium • Crude Oil • Natural Gas
  7. 7. Long term Buy and hold Total Transactions: 13
  8. 8. What methods did we use?
  9. 9. • Qualitative • Quantitative
  10. 10. How did we pick our stocks?
  11. 11. Our Strategies • Buy and hold • Diversification • Safe investments
  12. 12. • Well run companies • Good track record • Long term need Qualitative Choosing Stocks • Speculation
  13. 13. • Sharpe Ratio • C.A.P.M • Historical Trend Quantitative Choosing Stocks
  14. 14. Choosing Energy Stocks Compare Sharpe Ratios of: • Canadian Natural Resources (CNQ.TO) • Encanna Corporation (ECA.TO) • Suncor Energy (SU.TO) • Cameco Corporation (CCO.TO)
  15. 15. Short Sale & Margin Buy Margin Use C.A.P.M to compare: • Saputo • ? • ? Short Use C.A.P.M to compare: • Telus • ? • ?
  16. 16. How did we execute this plan?
  17. 17. Execution 18% 9% 13% 40% 20% Sector Diversification (by value) Industrials Financial Consumer Staples Energy Telecommunications Our Portfolio • TD Bank • Potash Corp • Canadian Natural Resources • Bridgewater Systems • Research in Motion • Encana • Canadian National Railway • Trans Canada Pipelines • Canada Bread • Cameco • Saputo (margin) • Telus (short)
  18. 18. 9% 9% 13% 9% 6%9% 9% 9% 5% 9% 8% 5% Overall Contribution to Portfolio (by value) TD Bank Potash Corp. Canadian Natural Resources Bridgewater Systems Research in Motion Transcanada Pipeline Encana Corp. Cadian National Railway Canada Bread Co. Ltd. Cameco Corp. Saputo Telus Corp.
  19. 19. -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 13.36% 15.89% 6.29% 30.46% 8.46% 6.76% 3.11% 8.92% -4.04% 4.41% -2.73% -0.14% Percent Change
  20. 20. What were our top performers?
  21. 21. Best Performers Bridgewater Systems Percent Change +30.46%
  22. 22. Best Performers Potash Corporation Percent Change +15.89%
  23. 23. Best Performers Toronto Dominion Bank Percent Change +13.36%
  24. 24. Worst Performer Canada Bread Percent Change - 4.04%
  25. 25. How did we compare to the market?
  26. 26. -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 1 6 11 16 21 26 PercentageReturn Our Portfolio vs. TSX vs. Risk Free Investment Risk Free Rate TSX Market Our Portfolio Period (days)
  27. 27. Conclusion • Outperformed the market (by .53%) • Qualitative measures are important • Canadian strengths
  28. 28. Thanks for listening

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