This document provides an overview of the Robert L. Kieschnick Endowed Student Investment Corporation fund for Fall 2014. Key points: - The graduate student fund manages $30,000 globally under Professor Tahar Mjigal. The fund aims to generate scholarships and provide practical investment experience to students. - The class of 13 students is divided into 5 research teams that analyze stocks and manage the portfolio. Teams purchased 5 stocks and exited 6 positions in Fall 2014. - The portfolio holdings include 13 stocks across various sectors. The portfolio aims to outperform benchmarks with less risk through diversification and rebalancing. - The investment policy outlines objectives, benchmarks, permitted investments, and risk guidelines.

1. FALL 2014 PERFORMANCE REPORT
Robert L. Kieschnick Endowed Student Investment Corporation

3. Table of Contents
Fund Overview....................................................................................................2
Class Experience.................................................................................................3
Stocks Purchased, Sold, and Considered............................................................4
Team biographies................................................................................................6
Advisory Board.................................................................................................11
Investment Policy Statement.............................................................................12
Portfolio Holdings.............................................................................................17
Portfolio Allocation by Asset Classes...............................................................18
Asset Classes Overview....................................................................................19
Graduate Fund’s Performance Overview..........................................................22
3

4. Fund Overview
The University of Texas at Dallas Student Investment Corporation, also known as the student
managed investment fund, was established in September 2012. The fund began with a $60,000
donation from the family of Dr. Robert Kieschnick, a finance professor at UT Dallas. The
donation was split equally amongst the graduate and undergraduate funds: $30,000 for the
undergraduate fund, which is focused on domestic equities, and $30,000 for the graduate fund,
which is focused on global market securities.
The graduate student analysts manage the fund under the supervision of Professor Tahar Mjigal.
Professor Mjigal teaches students to use a combination of fundamental and Technical analysis to
make investment decisions. The fund has four main objectives:
• Generating scholarships for deserving students financed by fund returns
• To offer practical, real world investment experience to students
• Providing students with practical knowledge of the security analysis process
• Enhancing ties between Jindal School of Management students and the
investment industry
In 2014, UT Dallas built a trading lab to the Jindal School of Management new addition. The
space is designed specifically for the fund, to aid in professional development, research, and
presentations. It is professionally equipped with an electronic ticker, a video wall, workstations,
Bloomberg terminals, and advanced trading software.
4

5. Class Experience
The current graduate fund is comprised of 5 investments Team and 13 selected students who
have particular interest in capital markets, investment management and are working towards the
Chartered Financial Analyst designation (CFA) and the Financial Risk Manager Designation
(FRM). The course has followed both practical and theoretical aspects of portfolio construction
and evaluation by providing opportunities for the students to practice investment management
concepts through class projects. As part of the program, students are expected to follow current
events in the financial industry and discuss the topics in class. Topics range from a variety of
items such as management decisions within institutions, debt/equity performance, asset
allocation among indices, and alternative investments.
The program gives students the chance to implement the knowledge learned in class to manage
the entire graduate portfolio.
The class also includes a guest speaker series, allowing the students to hear real-world strategies
employed by various investment funds, hedge funds and private equity firms across the CROCI
Strategy. This semester spoke to the analysts about short-selling stocks.
The class was divided into three groups:
Research Team 1: Rui Wang, Brandon Burgess
Research Team 2: Fan Li, Yanan Zhang
Research Team 3: Jipeng Li, Yi Li, Feifan Xiong
Research Team 4: Xiaoshu Wang, Haolan Zhang, Lu Zhou
Research Team 5: Ji Qi, Huaqian Qi, Xinliang Tang
5

6. Stocks Purchased-Fall 2014
Listed alphabetically by security
Stock
Research
Team
Degree
Actavis PLC. (ACT) Team 5 MS in Finance
Ambarella, Inc. (AMBA) Team 3 MS in Finance
Infosys Ltd. (INFY) Team 1 MS in Finance
iShares MSCI Thailand Capped.(THD) Team 1 MS in Finance
ProShares Large Cap Core Plus.(CSM) Team 4 MS in Finance
Stock Positions Exited-Fall 2014
Listed alphabetically by security
Stock
Research
Team
Degree
AlphaClone Alternative Alpha ETF.(ALFA) Team 4 MS in Finance
EQT Corporation. (EQT) Team 2 MS in Finance
iShares Europe. (IEV) Team 1 MS in Finance
iShares Microcap ETF.(IWC) Team 3 MS in Finance
Mylan, Inc.(MYL) Team 5 MS in Finance
ProShares Large Cap Core Plus.(SYNA) Team 5 MS in Finance
Stocks Considered, Not Purchased-Fall 2014
Listed alphabetically by security
Stock
Research
Team
Degree
Ball Corporation.(BLL) Team 2 MS in Finance
Esterline Technologies Corp. (ESL) Team 3 MS in Finance
Health Net, Inc. (HNT) Team 3 MS in Finance
Highland long/short healthcare Fund.(HHCZX) Team 4 MS in Finance
Martin Marietta Materials Inc.(MLM) Team 2 MS in Finance
Trina Solar Ltd. (TSL) Team 1 MS in Finance
6

7. Valeant Pharmaceuticals International.(VRX) Team 4 MS in Finance
Current Holdings
Listed alphabetically by security
Stock Analysts Degree
Actavis PLC. (ACT) Team 5 MS in Finance
Ambarella, Inc.(AMBA) Team 3 MS in Finance
Annaly Capital Management, Inc. (NLY) Previous * MS in Finance
Baidu, Inc. (BIDU) Previous MS in Finance
Hennessy Gas Utility Index Fund.(GASFX) Previous MS in Finance
Infosys Ltd.(INFY) Team 1 MS in Finance
iShares MSCI Thailand Capped.(THD) Team 1 MS in Finance
Lockheed Martin Corporation.(LMT) Previous MS in Finance
Marriott international, Inc.(MAR) Previous MS in Finance
PowerShares ETF- PowerShares Buyback Achievers Portfolio.
(PKW)
Previous MS in Finance
ProShares Large Cap Core Plus.(CSM) Team 4 MS in Finance
Health Care Select Sector SPDR ETF.(XLV) Previous MS in Finance
Vanguard High Dividend Yield ETF.(VYM) Previous MS in Finance
Wells Fargo & Company.(WFC) Previous MS in Finance
(*) “Previous” represents for previous semester analysts.
7

8. Team Biographies
Research Team 1
Rui Wang
International Equity Analyst
Degree: MS in Finance
I am a graduate student in Finance and will graduate in
December 2014. I worked for a SAP Consulting company as
Financial Analyst for one year. I will be a PhD student in
Computer Science next semester. I achieved mathematics
bachelor in China. I hope that I can combine my math and
computer science knowledge to solve Finance problems in
the future.
Brandon Burgess
International Equity Analyst
Degree: MS in Finance
I am a graduate student in Finance and will graduate in
December of 2014. I received my undergraduate degree in
International Business from Tennessee Technological
University, and currently works as the controller for
ProSource Industries, a custom electrical component
manufacturer in Grand Prairie. I started the MS in Finance
degree with the hopes of learning more about my personal
finances while also furthering my career.
Research Team 2
8

9. Fan Li
Natural Recourse Analyst
Yanan Zhang
Natural Recourse Analyst
Degree: MS in Finance
I am a graduate student in Finance and will graduate
December 2014. I achieved the Mathematics Bachelor degree
in China. I show proficiency in financial analysis, modeling,
statistics software (such as excel, Matlab, R and SPSS) and
programming. I am seeking a position in Financial Analyst or
Investment Advisor.
Degree: MS in Finance
I will graduate in December 2014 and am actively looking
for a full-time job starting from January 2015. My career
goal is to become a professional financial analyst.
Research Team 3
Yi Li
9

10. Venture Capital Analyst
Degree: MS in Finance
I am a highly motivated MSF student at UT Dallas. I actively
participated in the Student Run Investment Fund (SRIF) and
acquired advanced fundamental and technical analysis skills.
My study puts emphasis on financial analysis and investment
management Competent to lead teams in challenging
situations and highly communicative and detail-oriented.
Jipeng Li
Venture Capital Analyst
Degree: MS in Finance.
CFA Level II candidate.
BS in Chemistry and Economics.
Current position: Business Analyst at an IT consulting
company (intern).
Prior: ICBC, Citi China, etc. (intern)
Graduation: May 2015. (Seeking full-time job)
Area of interest: Investment Banking, Portfolio Management,
Hedge Fund, etc.
Contact me: 972-977-0090, lijipeng1990@gmail.com
LinkedIn: www.linkedin.com/in/li972jipeng977jp0090/
Feifan Xiong
Venture Capital Analyst
Degree: MS in Finance
I am going to get my MS finance degree in the University of
Texas at Dallas in Fall 2014. I worked in SPD Bank as
Internship in 2013, which inspired my interests in finance.
After graduation, I will find a job mainly concerned about
the investment finance and risk management.
Research Team 4
Lu Zhou
10

11. Hedge Fund Analyst
Degree: MS in Finance (Investment Management
Concentration)
I will graduate in December 2014 from University of Texas
at Dallas. I collaborated positively with professors to help do
financial researches in banking and asset pricing during both
undergraduate and graduate studies. I am willing to pursue a
PhD in Financial Engineering after graduation.
Haolan Zhang
Hedge Fund Analyst
Degree: MS in Finance (Investment Management
Concentration)
I will graduate in December 2014 from University of Texas
at Dallas. I collaborated with my team to manage the Student
Run Investment Fund and had a passion for investment
management. I am seeking a position in Financial Analyst.
Xiaoshu Wang
Hedge Fund Analyst
Degree: MS in Finance (Investment Management
Concentration)
I will graduate in May 2015 from University of Texas at
Dallas. I am willing to engage in investment after graduate,
and now working on CFA exam levelⅡ and CMA exam.
Research Team 5
Ji(Ivy) Qi
11

12. US Equity Analyst
Degree: MS in Finance
I am a second-year graduate student major in Finance. I am
selected by Dr. Kieschnick as a Finance Teaching Assistant
in JSOM and will launch career as a financial analyst. I
believe, when there is a will, there is a way.
Huaqian Qi
US Equity Analyst
Degree: MS in Finance
I got my Bachelor degree at Saint Louis University. I am
graduating in fall 2014 at MS in Finance in University of
Texas at Dallas. After graduation, I am going back to China
and looking for a job in Finance.
Xinliang Tang
US Equity Analyst
Degree: MS in Finance
I am currently a graduate student specializing in Finance in
the university of Texas at Dallas, and I will be graduating
2015 May. I am highly motivated and enthusiastic about
what I am learning. I am seeking for a 2015 Spring/Summer
internship and planning to obtain practical working
experiences before I going back to China.
Advisory Board
Collin Carter Charles Norton
12

13. Portfolio Manager, Presidio Portfolio Manager, Wells Fargo
Jonathan Deweese Rob Peters
Portfolio Manager, Luther King Capital Portfolio Manager, Palogic Value Fund
Jonathan Fite Jon Poglitsch
Portfolio Manager, KMF Investments Portfolio Manager, Highland Capital
Andy Foskey Stephen Raggio
Managing Director, Transition Capital Partners Portfolio Manager, Caelus Oil
Mike Fox Jason Safran
CIO, Park City Capital Analyst, TCU
Marc Haggar Stan Stevenson
Portfolio Manager, UBS Portfolio Manager, Northern Trust
Stephen Hammond Ryan Smith
Managing Director, FTI Consulting Portfolio Manager, Texas Capital Bank
Nathan Jacks Charles Taylor
Portfolio Manager, Bank of America Director, Schroder Investment Management
Andrew Johnson Chris Terry
Analyst, Lee Financial Analyst, Hodges Capital
Stephanie Jones Brandon Troegle
Portfolio Manager, Smith Group Portfolio Manager, Hillcrest Asset Management
John Kvale Bradley Troutman
CEO, JK Financial CFO, Celanese
Paul Laherty Ryan Vardeman
Principal, Travelocity.com Portfolio Manager, Palogic Value Fund
Ham Lee Jim Webb
Investment Consultant, Cambridge Portfolio Manager, Edward Jones
Fred Lehman Lyndon Westerberg
Portfolio Manager, Morgan Stanley Portfolio Manager, JP Morgan
Chris Mawn Dave Wiley
Portfolio Manager, Highland Capital Advisory, Wiley Advisory
Investment Policy Statement
13

14. The UTD Student Investment Corporation was founded in September 2012 and was split into
two funds: a UTD undergraduate fund that has a focus on North American investment
opportunities and a UTD graduate fund that seeks out global investment opportunities. The
funds intend to grow to a size that can support student scholarships at the Jindal School of
Management. The funds will also enhance the student learning experience at UTD. The
Directors of the UTD Student Funds anticipate that growth of capital as well as income
producing securities will provide the returns sought to further the goals of the funds.
Goals of the UTD Student Investment Funds
• Provide student scholarships
• Offer practical, real world investment experience to students
• Offer practical knowledge of security analysis process to students
• Enhance ties between SOM students and the investment industry
Investment Committee
The Directors have authorized an Investment Committee to supervise and assist the student
managers to better achieve the goals of the Funds. The Investment Committee will transmit trade
orders to the custodial firm for the funds and confirm that the proposed trades meet the risk and
allocation guidelines.
Permitted Investments
The Investment Committee defines appropriate investments to have several characteristics:
• Foreign or domestic securities that are traded on a major US exchange
• Foreign or domestic securities that file SEC disclosures
• Securities issued by firms with low or moderate risk of financial distress
• Securities that do not have excessive leverage
• ETFs, ETNs, REITs, MLPs, Mutual Funds, MM funds, and bonds are permitted.
• Short selling and margin trading are not permitted unless approved by the
committee.
Benchmarks
14

15. One of the first duties of each student management team is to adopt an Investment Committee
approved benchmark appropriate to its mission. See table below for equity benchmark.
Asset Class Asset Class Index Proxy
Money Markets Bank of America Merrill Lynch 1-3 month U.S. Treasury Index
U.S Fixed Income Barclays Aggregate Bond
International Fixed Income Lipper International Income Funds Average
U.S Equity Wilshire 5000 Equity Index
International Equity MSCI EAFE NR Index
High Yield BOA Merrill Lynch High Yield Master II Index
Multi-Strategy HFRI Hedge Funds Composite Index
Real Estate FTSE EPRA/NARAIT Global Real Estate Index
Natural Resources Dow Jones UBS Commodity Index
Venture Russell Microcap Index
Trades and Custody of Securities
The student managers will transmit their trades to the Investment Committee, in writing or
electronically. The Investment Committee will convey the trades for execution. The student
managers will not take custody of fund assets or resources.
Investment Return Objectives
The Directors anticipate that the fund will adopt a total return approach to wealth generation. The
student fund managers will seek to add value by growth in capital, income generation, and
capital preservation.
The fund return should provide a return sufficient to pay scholarship targets as well as cover
inflation and expenses. A likely expected minimum return over the long-term is 4% with
appropriate target returns of 8%. The benchmark adopted by the fund should be an approximate
measure due to the nature of the portfolio allocation.
Investment Risk Tolerance
15

16. The student fund managers should stress diversification as their primary means of risk control
over the long-term. During periods of excessive short-term volatility, fund managers may
consider capital preservation as a primary goal and recommend appropriate action, tactical
allocation to take advantage of opportunistic investment within asset classes. The fund is
expected to outperform the world equity index with less volatility due to the nature of the
portfolio allocation and the implementation of strategic and tactical allocation.
The fund managers should monitor individual security volatility and asset category volatility and
take action to reduce excessive risks. The risks may be quantified by a drawdown rule, standard
deviation rule, or other appropriate measure to assess deviation from normal performance. As
part of diversification and risk control, the fund managers should rebalance the fund to the
targeted allocation as the positions and the asset classes deviate more or less than 5% from its
targeted allocation.
Constraints
Liquidity: Appropriate to the payout policy of the Directors and donors
Time Horizon:Long-term, infinite
Taxation: No taxation issues for the student funds
Legal: Fiduciary laws may apply, so managers will act appropriately
Asset Allocation
The fund will diversify across assets, sectors, and industries. The permitted investments include:
• Cash
• Equities
• Fixed Income
Alternative Assets:
• Hedge Funds
• Natural Resources
• Real Estate
• Venture
16

17. The fund managers will set Strategic Asset Allocation with the Investment Committee’s
participation and adopt a benchmark appropriate to their SAA. Tactical Asset Allocation
decisions will also include the Investment Committee’s participation. TAA decisions will be
motivated to either exploit return opportunities presented by market volatility or risk reduction
opportunities given the capital preservation guidelines of the funds.
Portfolio Rebalancing
The fund managers should discuss with the Investment Committee rebalancing assets quarterly
or more frequently if needed. Portfolios require rebalancing due to security returns, cash flows
of the fund, and relative asset movements. Managers should file with the Investment Committee
a brief report on their recommended actions, if any.
Portfolio Measurement
Portfolio performance and return assessment should be conducted on a regular, frequent basis.
Those reports should be given to the Investment Committee monthly or weekly if possible.
These reports will identify successes and failures in strategy, tactics, risk control, and security
selection. Information that may be included would be current month, trailing months, YTD, and
trailing yearly returns as well as cumulative percentage gains and losses by position. The fund
managers can include any additional information (benchmarks, volatility, etc.) that assists in the
performance and assessment of the fund.
Mission of the UTD Student Fund
To build the wealth of the fund by practicing sound long-term investment processes while
increasing student knowledge of the investment process, financial markets, and the investment
profession.
Distributions
It is anticipated that the Funds will make periodic distributions in the form of scholarships.
Scholarships are expected to be awarded in the amount of $1,000 and only payable from growth
in the Funds, whether through appreciation or in the form of stock dividends. In addition, the
17

18. graduate investment fund will fund graduate student scholarships and the undergraduate
investment fund will fund undergraduate scholarships.
Global Fund Benchmark
The S&P 500 is widely regarded as the best single gauge of the U.S. equities market. This world-
renowned index includes 500 leading companies in leading industries of the U.S. economy.
Although the S&P 500 focuses on the large cap segment of the market, with approximately 75%
coverage of U.S. equities, it is not the ideal proxy for the Grad’s Student Run Investment Fund.
An approximate proxy is the total world equity Index (ACWI).
18

19. Portfolio Holdings
As of 11/30/2014
Sector Symbol Current Exposure Target Exposure
Money Markets Total 4.12% 0%
Cash FCASH 4.12%
U.S Fixed Income Total 0.00% 0%
International Fixed Income Total 0.00% 0%
High Yield Total 10.84% 10%
Annaly Capital Management, Inc, NLY 5.06%
Vanguard High Dividend Yield Index ETF VYM 5.77%
U.S Equity Total 28.30% 30%
Actavis plc ACT 5.20%
Lockheed Martin Corporation LMT 5.26%
Marriott International, Inc. MAR 6.49%
Wells Fargo & Company WFC 5.24%
Health Care Select Sector SPDR XLV 6.12%
International Equity Total 20.95% 25%
Baidu, Inc. BIDU 6.73%
Infosys Ltd. INFY 6.90%
iShares MSCI Thailand Capped THD 7.31%
Multi-Strategy Total 14.98% 15%
ProShares Large Cap Core Plus CSM 7.51%
Power shares Buy Back Achievers PKW 7.47%
Real Estate Total 0.00% 0%
Natural Resources Total 14.47% 15%
Hennessy Gas Utility Index GASFX 14.47%
Venture Total 6.34% 5%
Ambarella, Inc. AMBA 6.34%
Total 100.00% 100%
19

20. Portfolio Allocation by Asset classes
As of 11/30/14
20

21. Asset Classes Overview
Money Markets
The money market asset class’s target allocation is 0%, however, due to current economy and
market condition, the current cash allocation is 4.12%, basically occupying allocation from
international equity. The investment committee is in the process of researching a better
alternative investment to cash while we’re searching for new replacements.
Fixed Income Market
The Federal Reserve ended Quantitative Easing in October 2014, but assured the markets that its
benchmark interest rate would remain near zero for a “considerable time”. Due to volatility of
the bond markets and low yield environment we have decided not to allocate to U.S and
International Fixed Income at this time.
U.S Equity
The U.S Equity was the best performing asset in 2014, despite the ending of Quantitative Easing
and the huge loss in energy sector. We remain the 30% allocation to US Equity. We replaced
Biotech ETF (BBH) with Activas (ACT), all else on hold. Currently, the biggest exposed sector
of our fund is health care.
Sector Performance Summary
Sectors (U.S) 3M 1Y YTD
Industrial (XLI) 3.88% 15.74% 7.18%
Basic Materials (XLB) -2.40% 12.74% 6.23%
Energy (XLE) -3.50% 3.19% 0.32%
Technology (XLK) 1.60% 22.67% 14.88%
Financial Services (XLF) 2.94% 17.82% 10.46%
Health Care (XLV) 10.39% 28.91% 28.01%
International Equity
International Equities account for close to 55% of global market capitalization, thus representing
a significant opportunity for U.S investors. The historical data shows that adding non-U.S.
21

22. stocks, which can diversify risk, will reduce the total volatility of a portfolio. With the growth of
Asian countries, we do analysis on Chinese and Indian companies in technology sector, which is
still a leader. At last, we still hold Baidu, which is always doing well and we buy Infosys and
ishares Thailand to achieve exposure of international equity to 21.16%. Because of the weakness
in Europe, we quit the European Market.
Sector Performance Summary
International Sector 3M 1Y YTD
Consumer Discretionary (IPD) -3.12% -3.29% -6.68%
Industrial (IPN) -5.96% -3.38% -6.40%
Health Care (IRY) 0.95% 14.49% 10.38%
Technology (IPK) -3.35% 1.37% -2.13%
Energy (IPW) -13.45% -4.69% -7.23%
Natural Resources
Our target allocation for this asset class is 15%. In this asset, we specifically focus on domestic
natural gas in energy sector. Crude Oil price continues to decline and we lower our exposure to
oil sector in order to decrease our portfolio risk. Our position in Hennessy Gas Utility index
(GASFX) has performed well. So we exited EQT Corporation and relocate the money to natural
gas and utility industry.
Sector Performance Summary
Indices MTD QTD YTD
Dow Jones Commodity Index TR -1.31% -1.59% -9.27%
Dow Jones Commodity Index Energy TR -4.89% -14.18% -19.16%
Dow Jones Commodity Index Crude Oil TR -7.45% -17.51% -19.43%
Dow Jones Commodity Index Natural Gas TR 13.90% 4.57% 8.85%
Dow Jones Commodity Index Heating Oil TR -6.21% -11.24% -21.82%
Dow Jones Commodity Index Metals Capped Component TR 0.38% -0.75% -1.81%
Dow Jones Commodity Index Industrial Metals TR -0.50% 0.87% -0.59%
Dow Jones Commodity Index Precious Metals TR 1.73% -2.16% -4.57%
Multi-Strategy
22

23. Our Multi-Strategy asset class focuses on hedge fund investment. The exposure to this asset
class used to be 10% as the target allocation. After our analysis of our current holdings portfolio,
we reallocate our exposure to 15%. We have sold AlphaClone Alternative Alpha ETF (ALFA)
and added ProShares Large Cap Core Plus ETF (CSM) to the portfolio.
Sector Performance Summary
Sector Symbol
Current
Exposure
Target
Exposure
Multi-Strategy Total 12.87% 15%
PowerShares Buy Back Achievers PKW 5.28%
ProShares Large Cap Core Plus CSM 7.59%
High Yield
Our exposure to this asset class is 10%: We have Annaly Capital Management (NLY) and
Vanguard High Dividend Yield (VYM) to the portfolio. They have continuously performed well
for the whole semester and provide a stable income for our portfolio.
Real Estate
We believe that the economy's improving growth will likely continue to fuel strong REIT and
real asset fundamentals, however the sector is volatile. We decided not have any allocation at
this time.
Venture
In this asset class we focus on early stage micro-to-small market cap companies. We abandoned
the Russell microcap Index ETF (IWC) for its poor performance this year and replaced with
Ambarella, Inc., and chip maker in a favored theme sector, technology. Due to volatile market
and economic condition, we decided to re-allocate venture with 5% of our fund.
Graduate Fund’s Performance Overview
23

24. The main long run performance goal of the graduate UTD Student Run Investment Fund (SRIF)
is to seek mid-to-long term capital appreciation and outperform the world equity index (iShares
MSCI ACWI ETF, ACWI). The fund’s ending wealth as of November 30th
2014 is $36,436. A
$10,000 investment in ACWI would have grown to $13,189 from SRIF’s inception on
September 2012 to November 2014, while in the same period, SRIF would have grown to
$13,405, 3.4% greater. These returns are reflected over a relatively short time period of
approximately 26 months. This semester, a new committee of 13 analyst managed the fund, and
from September 2014 to November 2014, the fund realized a return of 3.53% while ACWI’s
same period return is -0.65%.
From the fund’s inception to the October 2013, the holdings were mainly international stocks.
The international Equity has underperformed significantly the US. Equity since December 2010.
When the fund became under new management on September 2013, the new committee has
decided to diversify to 10 different asset classes: Money Market, US Fixed Income, International
Fixed Income, US Equity, International Equity, Multi-Strategy, Real Estate, Natural Resources,
and Venture. Each asset class over/under-weighted based on the students’ research and
macroeconomic sentiment. As time progressed, students learning different strategies and
valuation methods pitched stocks to be added to the portfolio. Stocks with a majority of votes
were added to the portfolio. The fund is now approximately 96% invested in stocks, ETFs, and
24

25. Mutual funds. We aim to be fully invested in stocks and ETFs. (See Current Allocation on Page
17)
Since the inception of this fund in September 2012, the portfolio has realized a gain of 30.30%.
The table below has been divided into several time periods to depict the return of the fund
compared to the world equity index return.
The table below summarizes all the investment statistics related with risk. Risk statistics, risk-
adjusted statistics and tail-risk statistics are included for both our fund and world equity index.
Investment Statistics Data Type
Student Run Investment Fund
(SRIF)
World Equity Index
(ACWI)
Compound ROR Month 1.27% 1.14%
Arithmetic Mean ROR Month 1.30% 1.17%
Median ROR Month 1.16% 1.37%
Maximum ROR Month 6.44% 5.16%
Minimum ROR Month -3.04% -4.06%
Max Drawdown Month 3.92% 4.06%
Standard Deviation Annual 9.07% 8.78%
Downside Deviation (0%) Annual 3.58% 5.44%
Downside Deviation (5%) Annual 3.58% 5.59%
Sharpe Ratio (2%) Annual 1.50 1.37
Sortino Ratio (5%) Annual 2.96 1.61
Calmar ratio Annual 4.16 3.58
Omega Ratio (0%) Month 1.89 2.25
Omega Ratio (5%) Month 1.89 1.89
Skewness Month 0.09 -0.25
Kurtosis Month -0.84 -0.35
Risk Statistics
Risk-Adjusted
Statistics
Tail-Risk
Statistics
In all 26 months since inception, SRIF has better monthly compound return 1.27% than ACWI
(1.14%), with higher maximum ROR and lower minimum ROR. SRIF suffered its maximum
drawdown 3.92% on May and June of 2013, while the maximum drawdown for ACWI was
4.06% on January 2014. Therefore, Calmar Ratio for SRIF and ACWI is 3.85 and 3.50,
25
As of November 30, 2014
Student Run Investment Fund
(SRIF)
World Equity Index
(ACWI)
2012 Q4 3.17% 2.34%
2013 19.08% 21.21%
2014 YTD 11.56% 6.83%
Inception to Date (26 months) 30.30% 28.63%
Inception to Date (annualized) 15.21% 13.65%

26. relatively, suggesting SRIF is less likely to expose to huge loss or has a better risk adjusted
return. For the 26 monthly returns, the annualized standard deviation of SRIF is 9.07%, slightly
higher than that of ACWI 8.78 %. So the Sharpe Ratio for SRIF and ACWI at 2% (considered as
risk-free rate) is 1.50 and 1.37, representing SRIF also outperformed ACWI from risk-adjusted
perspective. We favor positive outlier rather than negative outlier, although they both contribute
to standard deviation, so if we consider Sortino Ratio, whose nominator is the average return
minus the minimum acceptable return (MAR) instead of risk-free rate to represent “reward” and
denominator is the downside deviation to represent “risk”, SRIF outperformed ACWI
significantly. The minimum acceptable return (MAR) for our fund is 5%, as mention in
Investment Policy Statement. The downside deviations are calculated from the returns below
MAR, 3.58% for SRIF and 5.59% for ACWI. As a result, Sortino Ratios are 0.77 and 0.45
respectively and it also shows SRIF’s outperformance. Omega Ratio shows the possibility of
gains over loss. SRIF and ACWI’s Omega Ratio at 0% is 1.89 and 2.25. This shows SIRF
suffered higher possibility to lose. However, if we consider the threshold to be 5% (MAR), both
SRIF and ACWI have 17 “good returns” and 9 “bad returns”, leaving them the same Omega
Ratio of 1.89. The skewness for SRIF is positive, showing it has longer tail to the positive side
and is likely to have extraordinary gain. Excess Kurtosis for both ACWI and SRIF is below zero
and SRIF is even lower, suggesting a “fatter” distribution, partly due to insufficient of data (only
26 monthly returns).
Positive market this year is driven by continuing improvement in domestic economy. Significant
factors contributing to the portfolio performance in recent months are the market leaders,
technology and health care. Additionally, declining unemployment rate is a positive signal for
the overall economy. The Federal Reserve ended Quantitative Easing in October 2014, but
assured the markets that its benchmark interest rate would remain near zero for a “considerable
time”. Declining energy price has deeply harmed the energy sector, but will lead to a significant
rise in real income growth for households and should be a strong spur to consumer spending. The
housing sector looks much healthier these months as excess homes have mostly been gobbled up.
All in all, these positive events have contributed to an increase in investor confidence, and
investors have grown more comfortable owning stocks, with assets flowing into U.S. equity
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27. funds. In recent months, the Europe market was weak. We decided to adjust our exposure off
Europe market to avoid loss. Our new investment themes in emerging market are India and
Thailand. The fund’s strong performance comes from US equity and some of emerging markets
stocks.
Our fund has so far achieved its goal of the annualized return 5% - 8% target. There are some
potential threats that could slow down the global economic, such as continuously low inflation
rate and commodity price, negative reactions from investors if the Federal Reserve rises interest
rates, geo-political conflicts, continuing weak growth in Europe and Japan and emerging
markets, or a financial crisis in China due to a credit bubble and weakening exports and
industrial production. Even though there may be many factors that may hinder economic growth
and affect our portfolio, we believe the economy will be in a positive state in the long run. With
an improving economy and investor confidence being restored, we expect our portfolio to
outperform the world equity index in a long run and continue to increase its returns.
Conclusion
Over time, the UT Dallas Student Run Investment Fund should generate, at a minimum, returns
of 5-8%. As the students further their knowledge and increase the addition of individual
securities to the portfolio, the fund will hopefully be able to outperform its benchmark of the
world equity and distribute scholarships to deserving students. Thank you to the students,
faculty, local professionals and everyone that has made the UT Dallas Student Fund Investment
Corporation possible.
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28. Stock Report Cover Sheets
Research reports in page 4 are available upon request
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