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: http://business.marquette.edu/content/uploads/AIM/BiancoPresentation914.pdf

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
22-Aug-14
The list of largest Milwaukee-area investment managers is ranked by assets managed (Dec. 31, 2013)
Rank
Company
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

Young, Fabulous and Unemployed: Strategies for Survival


This appeared in a recent posting on the New York Society of Security Analysts (NYSSA) site. Susan Mach, PhD, is a communication coach, trainer, and strategist. She teaches management communication part time at major NYC-area business schools, and investment research report writing at NYSSA.

Early-autumn weather is bracing. Millions of students eagerly gear up for a new school year.  Business leaders fine-tune their strategy for the fourth-quarter push.  It’s a time of optimism, renewed energy, and forward-looking thinking. 

But these times are painful for people who are unemployed. So, if you’re a recent college grad, it’s understandable that you miss the structure, rhythms, and deadlines of the semester. 

Bottom line: Take a job—any job.  As long as it won’t harm our health or violate you ethics, any job is better than no job.  If you hate it, leave it.  But it’s worth a try. 
Here’s why:

  • Structure:  Having a job means having a schedule. Regardless of what kind of job it is, you have to manage time, balance family and work responsibilities, and plan your days. Plus, as you continue to search for the job of your dreams, you have to stay focused, in shape, and highly presentable. So you might as well earn some money.
  • Revenue: Even if it’s a low-paying job, at least you have a revenue trickle, if not a stream. It will enhance your emotional intelligence: Imagine the challenges people face when they have no education, no skills, no credentials, no network.
  • Network: Video games, Facebook, and texting can be fun, but they are also time vampires. And having no job can lead to loneliness and isolation—which have deadly effects on your morale. Most jobs require you to interact with others. You never know where your big break—an idea, a contact, a job lead--will come from. 
  • Skills: Today’s job market is a skills game. Every job is an opportunity to add to our personal skills arsenal. If you can wait on a table of six demanding customers ordering breakfast with a total of 18 unique configurations of coffee, omelets, and toast, you know how to stay calm under pressure. If you can stock shelves in a grocery store, you learn a lot about inventory management, customer preferences, and global trends in the food retail industry. If you’re working as an assistant day-care worker, you observe a wide variety of learning styles and you sharpen your ability to communicate clearly and concisely.
  • Forward movement: Taking any job demonstrates your work ethic. It’s not giving in to paralysis. It’s not standing still—and that’s what matters most these days.


Tuesday, September 9, 2014

Insider Trading: SAC's Martoma gets 9 year prison sentence for illegal actions

In the AIM program we have a course devoted to investment ethics. Unfortunately, there is no shortage of 'real world' material to learn from. In this most recent case, Mathew Martoma, a former portfolio manager at billionaire Steven A. Cohen's SAC Capital Advisors LP hedge fund, was sentenced on Monday to nine years in prison for engaging in what authorities called the most lucrative insider trading scheme in U.S. history. (Note: much of this material is from news accounts from Reuters and Bloomberg).
U.S. District Judge Paul Gardephe in New York said he had to account for the "enormous" $275 million gain SAC obtained as a result of illegal trades in pharmaceutical stocks. Prosecutors said the trades were based on tips Martoma received about a clinical trial for an Alzheimer's drug.
"I cannot and will not ignore that the gain is hundreds of millions of dollars more than ever seen in an insider trading prosecution," Gardephe said.
The sentence came despite appeals for leniency by Richard Strassberg, Martoma's lawyer, who cited "fragile family circumstances." Gardephe also ordered Martoma to forfeit $9.3 million, including his Boca Raton, Florida, home.
While Martoma, 40, faced up to 19-1/2 years in prison under federal sentencing guidelines, Gardephe said such punishment should be reserved for repeat offenders or criminal enterprise leaders.

But the judge said a severe sentence was nonetheless necessary, saying "there was nothing accidental about Mr. Martoma's conduct or the gain realized."
The nine-year sentence is among the longer prison terms in U.S. insider trading cases, reflecting a trend of increasingly lengthy sentences in recent years.
In 2012, corporate lawyer Matthew Kluger was sentenced in New Jersey to 12 years for trading on information from law firms about mergers. A year earlier, Galleon Group hedge fund founder Raj Rajaratnam was sentenced in New York to 11 years.
Manhattan U.S. Attorney Preet Bharara, whose office is engaged in a broad crackdown on insider trading, called the nine-year sentence "well-suited to the audacity of the illegal trading in this case."
The case against Martoma, who worked in SAC's CR Intrinsic Investors unit, stemmed from a long-running insider trading investigation of the hedge fund.
Eight employees have been convicted, and SAC last year agreed to pay $1.8 billion in criminal and civil settlements and plead guilty to fraud charges.
SAC recently changed its name to Point72 Asset Management, and the Stamford, Connecticut-firm was transformed into a family office managing Cohen's fortune.
Prosecutors said Martoma sought confidential information from doctors involved in a clinical trial of an Alzheimer's drug being developed by Elan Corp, since acquired by Perrigo Co (PRGO.N), and Wyeth, now a unit of Pfizer Inc (PFE.N).
Based on a tip Martoma received from Sidney Gilman, a former University of Michigan professor who chaired the drug's safety monitoring committee, SAC Capital in July 2008 began selling its $700 million position in Elan and Wyeth, prosecutors said.
They said most of the trading occurred in accounts controlled by Cohen, who had a 20-minute phone call with Martoma after receiving information about the negative results of the study.
Cohen has not been criminally charged. He faces a U.S. Securities and Exchange Commission civil action seeking to bar him from the financial services industry for failing to supervise Martoma and Michael Steinberg, an SAC portfolio manager convicted of insider trading in a separate trial in December. Cohen denies wrongdoing.