Saturday, April 18, 2015

Marquette's AIM Team Advanced to the Final Round of the 2015 Americas CFA Investment Research Challenge

The CFA Institute Investment Research Challenge is an annual global competition that provides university students with hands-on mentoring and intensive training in financial analysis. For the 6th time in the past 7 years - the team from Marquette University's AIM program advanced to the Americas round of the competition.

CFA Institute

The first ever CFA Institute Research Challenge competition was hosted by the New York Society of Security Analysts in 2002 and involved just five teams from the New York area. Since then, the competition has grown to involve tens of thousands of students from over 800 universities in more than 55 countries.

Local level competitions are organized and judged by local CFA chapters (i.e. Milwaukee and Madison) who are responsible for running the local Research Challenge. They secure the subject companies; recruit volunteers (such as mentors and graders); and run the event that involves the universities in their geographic region.

The regional and global competitions are hosted by the CFA Institute. The winner from each local competition advances to one of the three regional competitions: in the Americas; the Asia Pacific; and the Europe, Middle East, and Africa regions. The winner from each regional competition advances to the Global Final, where one team will emerge as global champion of the CFA Institute Research Challenge.
The Marquette team (for the 3rd time in the past 4 years) advanced from the quarter-final round and into the semi-final round. This year's time won the semi-final competition and competed in the Americas final round. For more information, go to:

Marquette's team members (from left to right): Jack Sullivan, Mary McNellis, Cole Johnson, Joe Hodes, and Mike Stankovsky.
The subject company this year was Alliant Energy (ticker: LNT). The local CFA host was the Madison Chapter. The CFA mentor was Travis Keshemberg and the faculty advisor was Dr. David Krause.
Speaking for the team, Dr. Krause told the CFA organizers, "Thank you for another wonderful event. We know the work and effort that goes into the organization and implementation of the CFA Research Challenge is a massive undertaking; however, it is worth it. The experiences gained by the students will last them a lifetime - it is truly one of the best applied learning opportunities we've been associated with. Congratulations - the event (and the competition) gets better each year - and we'll be back in 2016 with another solid team! 

Wednesday, March 25, 2015

Marquette Students Visit Warren Buffett

On Friday, March 20, students from Marquette University’s Applied Investment Management (AIM) program spent the day with legendary investor and business magnate, Warren Buffett, chairman and CEO of Berkshire Hathaway. AIM Director, Dr. David Krause, and 2009 AIM alumnus, David Martin, escorted 20 undergraduate students to Omaha, Nebraska, to tour two Omaha-based Berkshire Hathaway companies—Borsheims and the Nebraska Furniture Mart. They also had lunch with Buffett at one of his favorite local eateries, Piccolo Pete’s Restaurant. The Marquette students were joined by students from four other schools (Wharton, US Naval Academy, Notre Dame and Boston College). They also attended a two hour question-and-answer session with Mr. Buffett at the Field Club of Omaha.

Dr. Krause commented, “For students, I am certain the experience will have a lasting impact.  Mr. Buffett not only talked on a variety of finance topics, but he also discussed the importance of developing good habits early in one’s professional career. He offered valuable life lessons and emphasized the importance of being a lifelong learner. We enjoyed hearing about his basic philosophies and were impressed with
his humility.”  

AIM student Jack Sullivan found Buffett to be upbeat and optimistic. “While he is clearly a highly intelligent person, I was pleased to hear him speak positively about the future. His views about economics, business and society were insightful and offered an encouraging vision of the future. It was a notable day and one I’ll long remember.”

Krause concluded, “David Martin was responsible for arranging this opportunity and we are thankful for his continued involvement with the AIM and real estate programs at Marquette. He and Warren Buffett have developed a true friendship over the past several years and it was nice to hear David and Marquette receive a special shout out from Mr. Buffett. I was also delighted with our students—they were well prepared, asked excellent questions, and displayed genuine enthusiasm.”

Wednesday, January 21, 2015

AIM Students Compete in the Final Round of the NIBC

Four Marquette AIM students in the IB track advanced and competed in the final round of the National Investment Banking Competition (NIBC) in Vancouver on January 14-15, 2015.   The AIM students who participated were:  Jean Clermond, Alaa Ibrahim, Paul Tran and Blake Weir. 

The WhitePebble Group consisted of third and fourth year students in AIM. Alex is a finance and business economics major in his fourth year of undergraduate studies. His past experiences include working as a private debt and equity summer analyst at Northwestern Mutual Capital and as an industrial engineering intern at Walt Disney Parks & Resorts. Clermond is a finance and business economics major in his third year of undergraduate studies. His past experiences include working as a Corporate and Investment Banking summer analyst with Citigroup and as a Wealth Management Intern at Legacy Wealth Management. Paul is a third year finance and accounting student. His past experience includes working as a finance intern at Landaas & Company, an investment advisory firm. He also co-founded a mobile application development company, Fade, LLC. Blake is a fourth year finance and business economics student. He interned as a debt capital markets summer analyst at New Oak Capital and as a finance intern at Boston Scientific. Having worked together in the past on several financial projects, each member brought their diverse experiences into the NIBC.

This year, Marquette was one of 24 Undergraduate and 24 Graduate Teams from the initial 380 teams that were selected to advance to the Final Round. The team was challenged to analyze an investment banking transaction opportunity and prepared a live boardroom presentation to a group of investment banking professionals.

Monday, September 29, 2014

On Air: Marquette Business Professors Featured on National Radio's Marketplace

This month, three Marquette Business professors – Drs. Abdur Chowdhury, David Clark and David Krause – were featured on the nationally syndicated business radio program Marketplace.

Chowdhury, professor of economics, commented on the European Central Bank’s stimulus plan; Clark, professor of economics, discussed post-9/11 air travel, calling on some of his earlier research; and Krause, co-director of the Applied Investment Management program, weighed in on Twitter’s recent debt offering.

The segments aired on dozens of National Public Radio affiliates nationwide, including in the Los Angeles, Sacramento, San Francisco, Las Vegas, Austin, Portland, Seattle, Pittsburgh, Philadelphia and New York markets, among others.

Marketplace logo  
Chowdhury segment
Clark segment
Krause segment

Tuesday, September 16, 2014

Link to Jim Bianco's 9/16/2014 Presentation at Marquette University

Jim Bianco

The September 16, 2014, presentation by Jim Bianco at Marquette University can be accessed on the AIM web site or by following this link:

Jim Bianco will be speaking on campus on Tuesday, September 16 at 3:30 pm in Todd Wehr (Room 100)

Please note that the Jim Bianco talk with now be held at Todd Wehr Chemistry Building (Room 100) on Tuesday (9/16/2014) beginning at 3:30 pm. The talk was originally scheduled for the AIM Room – please notify anyone you invited about the room change. His presentation will be posted here after the event.

Saturday, September 13, 2014

On NPR's MarketPlace Dr. Krause commented on Twitter's new $1.5B bond offering

​Click to play clipTwitter
Twitter has gone to the bond market in an effort to raise as much as $1.5 billion as it remains unprofitable. 
This week, Twitter announced its plan to raise at least $1.3 billion by issuing convertible bonds. Unlike some companies that turn to the debt markets, the company doesn’t appear to be in dire need of cash. So what is their grand strategy?
“I don’t think it’s so much ‘What is the big strategy?’ I think the question many people will be asking is: ‘Is there a really meaningful strategy?’” says Nate Elliott, vice president at Forrester Research. He points out that Twitter’s user base, while large, is still closer to Google+ than Facebook, and the company is not yet profitable.
“If Twitter’s revenues matched its notoriety, it’d be doing just fine,” Elliott says.
But bond market investors are not in a skeptical mood, says David Krause, finance professor at Marquette University. “Companies are raising record amounts of debt right now.” 
The primary reason: With near-zero interest rates, other options are slim pickings — a rather unhappy economic indicator. “It’s the result of an economy that is still struggling, and it’s also due to what we’re seeing globally,” says Brian Rehling, chief fixed income strategist at Wells Fargo Advisors. “We’re seeing very weak if not negative growth over in Europe."
On the positive side, the drive to issue debt now may be motivated by a belief that the macroeconomic picture is going to change. “I think there is a sense from some that this is not going to last,” says Rehling.
“It’s a very opportune time for companies that may not be investment grade to be able to go out and lock in some long-term money at some very attractive rates,” says Krause.
Krause thinks Twitter’s offering will be very attractive to investors.
Even if all it buys Twitter in the short term is more time.

Thursday, September 11, 2014

Largest Milwaukee-area investment managers (ranked by managed assets as of Dec. 31, 2013)

Locally Researched by: Barbara Zaferos, Milwaukee Business Journal
The list of largest Milwaukee-area investment managers is ranked by assets managed (Dec. 31, 2013)
Managed assets as of 12/31/13
Investment strategy, style
Top local executive
1 Mason Street Advisors LLC $118,500,000,000 Fixed income - investment grade corporate, securitized, government, high yield Ronald Joelson, president
720 E. Wisconsin Ave. equity - domestic growth
Milwaukee, WI 53202
2 Artisan Partners $105,500,000,000 Independent investment firm that provides broad range of high value-added strategies Bob Batchelor, managing director, head of marketing and communications
875 E. Wisconsin Ave.
Suite 800
Milwaukee, WI 53202
3 Fiduciary Management Inc. $20,650,900,000 Equity strategies that apply a value discipline, with a focused approach firmly rooted in fundamental research Ted Kellner, executive chairman
100 E. Wisconsin Ave. Patrick English, CEO, chief investment officer
Suite 2200 John Brandser, president, COO, CCO
Milwaukee, WI 53202
4 Baird Advisors $20,105,160,000 Structured, short,intermediate, taxable and tax-exempt, core fixed income, including long duration customized benchmarks Mary Ellen Stanek, managing director, chief investment officer
777 E. Wisconsin Ave.
Suite 2500
Milwaukee, WI 53202
5 Geneva Capital Management $6,700,000,000 U.S. mid-growth and small-cap growth Nick Bauer, principal, director of consultant relations
100 E. Wisconsin Ave. Amy Croen,
Suite 2550 Scott Priebe, managing principals
Milwaukee, WI 53202