1) HGHAX had the highest returns over 3, 5, 8, and 10 years but also the highest expenses. IYH and SPY had lower returns but much lower expenses. 2) IYH and SPY had lower standard deviations, indicating less volatility than HGHAX. IYH in particular had the lowest risk. 3) IYH had the highest Sharpe Ratios over 3 and 5 years, meaning it had the best risk-adjusted returns. SPY had the lowest Sharpe Ratios, indicating poorer risk-adjusted performance.

1. William Namen
10/28/2014
Portfolio & Mutual Fund Analysis
Investment Strategy and Securities Selection
The Namen-American Capital Fund focuses on long term investments with stable above average
market returns. The main goal of the fund is to create value for shareholders by passively
investing and managing in long term growth stocks. To fulfill this, the fund uses a top down
approach as its investment strategy. First, the portfolio analyzed the US economy and the
sectors of potential growth within the economy. Second, it analyzed the specific products and
companies within the targeted sectors of potential growth. The portfolio heavily considered the
current status of the US economy. The rationale behind this consideration was to provide
additional substance in the decision making process.
Second Quarter GDP Growth 4.60%
Inflation Rate 1.70%
Unemployment Rate 5.90%
Interest Rate 0.25%
Per Capita DPI Average Annual Growth Rate 5.48%
These data points indicate some important information that helped determined what industries
the portfolio would focus on. The obvious indicator, GDP growth rate showed a huge upturn in
the economy at the midpoint of the year which was accompanied by one of the lowest
unemployment rates since the crisis. Interest rates remain low as the Fed continues its practice
of quantitative easing which assisted in the upturn in GDP. However, the most important factor
was the average annual DPI growth rate which indicated a continued increase in consumer
spending. These factors, as well as, the strategy were critical in determining what industries and
companies the portfolio would focus on. The industries that were determined to encompass
these characteristics were Consumer Goods, Healthcare, and Financial Services. The portfolio

2. then focused on stocks within those sectors that have strong historical performance, strong
industry demand by consumers, strong strategic advantages, and potential future growth.
Investment Portfolio Weight
After analyzing the economy and
selecting stocks, the portfolio’s
weightings per sector were determined
based on two objectives. First, the fund
makes sure that the portfolio is not
weighted more than fifty percent in any
one sector or industry. Second, the
weightings focused on the fund’s objective of high consumer demand and potential future
growth. These two objectives guarantee that the fund will be diverse in its make-up with a
focus on growth and returns. In the case of this Investment Portfolio, the portfolio invested
heavily in healthcare, pharmaceuticals, and medical supplies. This heavy concentration was due
to an increased focused on revising the American healthcare system as well as current
pandemics in the case of Ebola. Although overweighting a sector is not typically a safe strategy,
the risk paid off with a strong return of 10.15% from the medical supplier BDX.
Portfolio Conclusion
The portfolio produced a return of -0.68% compared to the return of the S&P 500 of -1.44%.
The fund returned a little over double the return of the market as a whole. The poor
performance of the fund is primarily attributable to heavy losses and poor returns in the market
during the latter half of September and most of October. However, since the fund is long-term
oriented these short term results are not as significant as the results over a much longer period
could be. However, the results tell us that passively investing in companies that create value for
shareholders do provide strong returns that can beat the market.

3. Company Name Industry
% Weight of each
stock in your fund
P/E TTM P/E Forward PEG Beta ROE
Analyst
Recomendatio
n
Automatic Data Processing, Inc. Financial Data Services 4.18% 27.97 21.34 2.31 0.83 23.37% 2.6
Aetna Health Care: Insurance and Managed Care 9.99% 14.73 11.64 1.25 0.84 14.90% 2.1
American Express Consumer Credit Card and Related Services 4.47% 17.73 14.88 1.70 1.18 28.72% 2.4
Becton Dickinson Medical Equipment 9.90% 23.72 16.67 2.03 0.97 19.30% 2.6
Cigna Health Care: Insurance and Managed Care 9.91% 13.77 11.80 1.21 0.78 19.25% 2.3
Colgate-Palmolive Soaps and Cosmetics 9.77% 28.11 19.96 2.51 0.37 123.51% 2.6
Honeywell Aerospace and Defense 4.98% 19.34 15.67 1.64 1.23 25.04% 1.9
Henry Schein Wholesalers: Health Care 4.97% 23.02 19.67 1.98 0.98 15.19% 2.4
Johnson and Johnson Pharmaceuticals 9.60% 20.66 17.01 2.55 0.54 21.06% 2.3
JPMorgan Chase Megabanks 4.87% 15.14 10.20 2.46 1.92 7.40% 1.8
Merck Pharmaceuticals 6.01% 39.90 16.85 4.30 0.47 11.62% 2.5
Prudential Financial Insurance: Life and Health 3.67% 33.95 9.15 1.00 1.79 7.62% 1.9
Sealed Air Packaging, Containers 4.59% 40.37 18.23 1.19 1.41 12.25% 2.5
Travelers Cos. Insurance: Property and Casualty 4.71% 9.14 10.22 1.55 1.09 14.23% 2.6
Time Warner Entertainment 4.62% 17.13 16.99 1.52 1.25 15.44% 2.1
Xerox Computers 4.21% 15.36 11.65 2.07 1.51 9.35% 2.5
22.09 15.32 1.99 0.97 27.33% 2.35Weighted Averages:
INVESTMENTS MUTUAL FUND, PART 1
Your name: William Namen Cash available to invest: $1,000,000
Your class period/section: M/W 6:00-7:15 pm Actual amount invested on behalf of the client: $1,004,736
Your business concentration/major: Finance & Economics Actual date stocks were purchased: 9/18/2014
Closing value of the S&P on that day: 2011.36
Closing value of the portfolio: $997,711
Closing value of the S&P500: 1982.30
S&P500 return from the start to the end of your investment period: -1.44%
The "P0 " price The "P1 " price
9/19/2014 10/29/2014
HPR for
each stock
Automatic Data Processing, Inc. ADP $83.60 500 $41,800.00 4.18% $77.92 $38,960.00 -$2,840.00 -6.79%
Aetna AET $83.25 1200 $99,900.00 9.99% $79.75 $95,700.00 -$4,200.00 -4.20%
American Express AXP $89.49 500 $44,745.00 4.47% $88.34 $44,170.00 -$575.00 -1.29%
Becton Dickinson BDX $115.08 860 $98,968.80 9.90% $126.76 $109,013.60 $10,044.80 10.15%
Cigna CI $94.41 1050 $99,130.50 9.91% $94.00 $98,700.00 -$430.50 -0.43%
Colgate-Palmolive CL $65.10 1500 $97,650.00 9.77% $65.85 $98,775.00 $1,125.00 1.15%
Honeywell HON $95.76 520 $49,795.20 4.98% $95.05 $49,426.00 -$369.20 -0.74%
Henry Schein HSIC $117.02 425 $49,733.50 4.97% $119.07 $50,604.75 $871.25 1.75%
Johnson and Johnson JNJ $106.66 900 $95,994.00 9.60% $105.56 $95,004.00 -$990.00 -1.03%
JPMorgan Chase JPM $60.82 800 $48,656.00 4.87% $59.29 $47,432.00 -$1,224.00 -2.52%
Merck MRK $60.13 1000 $60,130.00 6.01% $56.20 $56,200.00 -$3,930.00 -6.54%
Prudential Financial PRU $91.76 400 $36,704.00 3.67% $86.70 $34,680.00 -$2,024.00 -5.51%
Sealed Air SEE $36.73 1250 $45,912.50 4.59% $34.68 $43,350.00 -$2,562.50 -5.58%
Travelers Cos. TRV $94.18 500 $47,090.00 4.71% $99.42 $49,710.00 $2,620.00 5.56%
Time Warner TWX $76.99 600 $46,194.00 4.62% $78.61 $47,166.00 $972.00 2.10%
Xerox XRX $14.04 3000 $42,120.00 4.21% $12.94 $38,820.00 -$3,300.00 -7.83%
Total intial amount of the position held (long and short) $1,004,523.50 $997,711.35 -$6,812.15 -0.68%
Total P/L
$ Profit (loss)
on each
position held
Closing value of
fund's positions
Closing Value of
the Amount of
Each Stock
Company Name Ticker Initial
Investment
% weight of
fund
Number of
shares
purchased
The fund's
HPR

4. Mutual Fund Description
The Hartford Healthcare Fund A (HGHAX) is an actively managed mutual fund that seeks long-
term growth for its stakeholders in healthcare related companies worldwide. The funds invests
in large cap equities and has an annual turnover over thirty percent, showing that the fund
does not hold onto a single equity for a long amount of time. The iShares US Healthcare ETF
(IYH) is an exchange-traded fund that attempts to track the Dow Jones US Health Care Index.
Much like the Hartford Healthcare Fund A, this ETF is looking for long-term growth by investing
in large cap equities.
Returns comparison
Both the Hartford Healthcare Fund A and iShares US Healthcare ETF performed well over the
past few years despite the financial crisis. IYH returned 112.92% and HGHAX returned 126.04%
on the three year holding period return. When looking at the five year holding period return,
HGHAX outperformed IYH by 15.37%. It is apparent that the fund is a better investment in
terms of holding period returns since it outperformed IYH in both the three-year and five-year
holding period returns. Additionally, I used the arithmetic and geometric means. However, due
to the arithmetic’s inaccuracy, I will only focus on the geometric mean. HGHAX outperformed
IYH by 1.55% in three-year returns and 1.37% in five-year returns.
Mutual Fund Risk
The fund used standard deviation and the sharpe ratio to analyze the riskiness of the fund and
ETF. The standard deviation was used to help determine how volatile each fund is. IYH had a
standard deviation of 2.17% less than HGHAX on three-year returns and 0.66% less on five year-
returns. The sharpe ratio tells you how much additional return you receive for additional
volatility. IYH has a three year sharpe of 9.11 compared to HGHAX’s 5.71 and a five year sharpe
of 1.62 compared to 1.65. This means that not only does IYH have lower volatility but that
investors are receiving a higher return for the additional volatility.

5. Mutual Fund Conclusion
Overall, HGHAX’s performance was pretty even compared to IYH. However, for HGHAX’s
management fees to be justifiable, the fund must decrease its standard deviation and increase
its sharpe ratio. If these changes do not occur, I do not believe that HGHAX is earning their
management fees. Ultimately, I would advise the investor to invest the ETF because as the time
increases, the performance and returns improve much better than the actively traded fund.

6. INVESTMENTS MUTUAL FUND PROJECT, PART 2 Report on three funds from the following period:
10/2/2004 to 9/30/2014
Your name: William Namen
Your class period/section: MW: 6:00-7:15pm
Your business concentration/major: Finance & Economics
Hartford Mutual Funds iShares
State Street Global
Advisors
Hartford Healthcare Fund
A
iShares US Healthcare
ETF
SPDR S&P 500
Large Size Growth Fund Large Size Growth Fund
Index fund of the
S&P500
Ticker: HGHAX IYH SPY
S&P NetAdvantage
3 Stars Marketweight Overweight
Sharpe Ratio (3 yr): 2.31 2.62 2.01
Alpha: 0.73 0.81 -0.01
Yahoo Finance - "Profile" - "Fees & Expenses"
Annual Report Expense Ratio (net): 1.40% 0.45% 0.09%
Max 12b1 Fee: 0.25% n/a n/a
Max Front End Sales Load: 5.50% n/a n/a
Max Deferred Sales Load: n/a n/a n/a
1 Year returns from
10/1/2013 9/30/2014 25.05% 26.62% 18.78%
10/1/2012 9/30/2013 30.81% 27.62% 18.57%
10/1/2011 9/30/2012 35.73% 32.55% 30.74%
10/1/2010 9/30/2011 5.06% 4.45% 0.64%
10/1/2009 9/30/2010 11.04% 9.37% 13.01%
10/1/2008 9/30/2009 -10.38% -2.04% -6.51%
10/2/2007 9/30/2008 -15.46% -11.33% -22.21%
10/2/2006 10/1/2007 15.68% 9.43% 16.28%
10/2/2005 10/1/2006 5.94% 6.53% 10.63%
10/2/2004 10/1/2005 19.03% 11.46% 11.52%
Holding Period Returns:
3 year 126.04% 112.92% 83.28%
5 year 154.00% 138.63% 104.87%
8 year 108.63% 118.29% 63.71%
10 year 150.07% 156.46% 98.83%
Annual Arithmetic Mean Returns:
3 year 30.53% 28.93% 22.70%
5 year 21.54% 20.12% 16.35%
8 year 12.19% 12.08% 8.66%
10 year 12.25% 11.47% 9.15%
Annual Geometric Mean Returns
3 year 30.46% 28.90% 22.57%
5 year 20.97% 19.60% 15.93%
8 year 10.79% 11.13% 7.41%
10 year 11.09% 10.69% 8.13%
Annual St Deviation of the returns
3 year 5.34% 3.17% 6.97%
5 year 13.05% 12.39% 10.91%
7 year 18.53% 15.55% 16.96%
10 year 16.63% 13.82% 14.99%
Sharpe Ratio
3 year 5.71 9.11 3.26
5 year 1.65 1.62 1.50
7 year 0.66 0.78 0.51
10 year 0.74 0.83 0.61
Open-ended, Actively
managed Fund *
Closed-end, Passively-
managed, Exchange-
Traded Fund *
Assigned Example Fund
Fund Family or Company Name (e.g. Vanguard,
Fidelity, etc)
Individual Fund Name
Brief description (industry, benchmark,
value/growth, etc):
Recommendation
(either "# Stars" or weighting):