Rodney Hathaway of 1492 Capital Management was the guest in the AIM program today

Hathaway and Krause

The portfolio manager of 1492’s Value Strategies and Core Alpha Strategy funds was the guest speaker in the AIM program on Wednesday, September 30, 2015. Rodney Hathaway, CFA, has a value-based approach to equity investing. He employs bottom-up fundamental techniques to identify undervalued stocks in the small cap universe.  His approach to small cap stock selection offers investors capital appreciation with lower volatility – and the stocks in the portfolio all have a dividend income component.



Mr. Hathaway’s presentation was well received by the AIM students. He talked in depth about his valuation philosophy and the thematic strategies he (and his growth counterpart at 1492 Capital Management, Joe Frohna) employ to identify attractive companies to add to the respective portfolios they manage.



Rodney Hathaway

Rodney has extensive small cap value investing experience. He has been a featured keynote speaker at several business forums and investment conferences throughout the country.  He has also been a regular commentator on CNBC, Bloomberg TV, CNN and Street.com.  Rodney has also been a featured expert on small cap value investing in publications such as Investor’s Business Daily, The Wall Street Journal, Businessweek, and Fortune.

In discussing the thematic approach employed by 1492, Rodney indicated that this enables the firm to quickly focus their research efforts on identifying companies that meet their valuation criteria and also have a catalyst for future growth and the realization of full value. This strategy allows for them to be more nimble in the entry and exit positions – as well as to add diversification to the portfolio.

Rodney and his associates will buy a number of companies across a specific theme so as to diversify single company risk. Over time, they envision that the stocks related to a theme will outperform their industry peers due to superior valuation and that the theme will outperform the broader market. While they are index aware, they do not use an index to determine our sector weightings. Weightings are arrived at as a result of the individual stock selection that takes place due to our bottom-up research process.

 

Wells Capital Management was on Marquette's campus this week

Jillian Morrissey (Marquette 2013 AIM alumnus) is an equity analyst at Wells Capital Management in Menomonee Falls, Wisconsin. She is a member of the PMV Equity Team covering restaurants, textiles, apparels & luxury goods and internet & catalog retail in the Consumer Discretionary, Food Products in Consumer Staples and Internet Software & Services in Information Technology. Jillian visited with Dr. Krause following interviews she conducted on campus.

Jillian Morrissey

Wells Capital Management is a multi-boutique asset management firm that provides funds and investment services to institutional clients. They seek to provide a diverse work environment with an emphasis on independent investment teams that are allowed to focus on generating alpha without the distractions of operating a business.

Ms. Morrissey and Dr. Krause had an opportunity to discuss the financial markets and her experiences at Wells. He commented that he has encouraged his students to interview for positions within Wells Capital because they have “an engaged work environment and have some of the smartest people in the world of investments and economic analysis.”

Bloomberg's Cody Clarkson addressed the FMA students

On Monday, September 28th, Cody Clarkson the Bloomberg representative for Wisconsin presented to the students in the Financial Management Association at Marquette University. In addition to overviewing the history and features of the Bloomberg system, he discussed internship and career entry level opportunities within the massive global financial firm - which is headquartered in New York City.

Cody also talked about Bloomberg Market Concepts (BMC), which is an 8 hour self-paced e-learning course that provides a visual introduction to the financial markets. BMC consists of 4 modules – Economics, Currencies, Fixed Income and Equities – woven together from Bloomberg data, news, analytics and television. The course is available either through the Bloomberg Institute website or on the Bloomberg Terminal at BMC.

The Bloomberg Aptitude Test (BAT) was also discussed. This is a global standardized online exam that assesses a student’s abilities as a critical thinker across a variety of competencies. It then enables test takers to showcase their strengths relative to thousands of other test takers to 25K+ recruiters at elite global investment and financial institutions. The BAT is offered to students from over 3,500 universities worldwide through physical, on-campus sessions or online sessions.

Dr. Charles L. Evans, President & CEO of Federal Reserve Bank of Chicago visited Marquette University today

Charles L. Evans is president and CEO of the Federal Reserve Bank of Chicago, one of 12 regional reserve banks across the country that composes our nation's central bank. In that capacity, he serves on the Federal Open Market Committee, the Federal Reserve System's monetary policymaking body. 

Dr. Evans during his speech, which was attended by over 300 faculty, students and alumni, indicated that he did not see a need for tightening (raising the Fed Funds rate) given the low level of expected inflation. While he continued to be optimistic about overall economic growth in the US, he did not see inflation as a significant future threat to the overall economy. During the Q&A he was consistent in his support of current Fed policy.

As head of the Chicago Fed, Evans oversees the work of about 1,400 employees who conduct economic research, supervise financial institutions, and provide payment services to commercial banks and the U.S. government. 

Previously, Evans was director of research and senior vice president, supervising the bank's research on monetary policy, banking, financial markets and regional economic conditions. He taught at the University of Chicago, University of Michigan and University of South Carolina and received a bachelor's degree in economics from the University of Virginia and a doctorate in economics from Carnegie-Mellon University in Pittsburgh.

5 Students Pitched Stocks on Friday before a group of over 80 students

On Friday, September 25, 2015, five Marquette University AIM students pitched stocks to a group of over 80 current and prospective AIM students in the Class of 2017. The session was so well attended that it needed to be held in Room 105 of the College of Business Administration.

To access these - all of the past AIM equity presentations - go to the AIM website at: http://business.marquette.edu/centers-and-programs/aimp-student-equity-write-ups

Starting in October, the Friday afternoon AIM presentations will be held on the road with the first set of AIM student pitches being held at Wells Capital Management. The next set of student equity presentations in the AIM Room will not be held until December 2015 .

Christi Kubiak and Kristin Holzhauer of Northwestern Mutual Investment Management visited Dr. Krause's class on Friday

On Friday, September 25, 2015, we had two guests visit campus from the investments function of the Northwestern Mutual Life Insurance Company. Christi Kubiak (CFA), Director, and Kristin Holzhauer (Marquette AIM 2011, CFA), Associate, in the Northwestern Mutual Investment Management Co. talked with students about fixed income investing. This marks the tenth year that personnel from Northwestern Mutual have visited Dr. Krause’s classes at Marquette University.

Formerly known as Mason Street Advisors, the Northwestern Mutual Investment Management team manages: Public Fixed Income, Public Equities, Convertibles and Derivatives for the NM’s General Account. Chrisit and Kristin work with public investments and their group manages portfolios with the goal of outperforming market benchmarks over a full market cycle and industry peers over the long-term. The team has over 50 investment professionals who manage more than $100 billion in assets with each portfolio guided by investment professionals who have specific, but linked, roles in distinguishing security opportunities.

Christi and Kristin talked with the students about their investment process and their approach to bottom’s up credit research. They employ a combination of approaches including: Relative Value, Fair Value, and Internal Ratings – to complement their strong Fundamental Credit Analysis. 

Chris Swain, Vice President of NM’s Public Investments, Fixed Income Group, is also a Marquette graduate and is the MBA instructor for Marquette’s fixed income course in the spring semesters. Amie Hahn and Quinn Noel, other Marquette alumni, were unable to participate this year; however, they have made frequent visits to Dr. Krause’s classes in past years. We appreciate all of the support of that Northwestern Mutual has provided Marquette and the AIM program over the past ten years.

Joe Frohna of 1492 Capital Management presented to the AIM students on Friday, September 25th

Joe Frohna, 1492 Capital Management’s founding principal and portfolio manager of the Growth Strategies and Core Alpha Strategy funds, was a guest speaker in the AIM program on Friday.

An experienced manager of public and private funds for institutional and individual investors since 1997; he has created a Milwaukee-based investment firm that focuses on finding small cap companies with superior growth characteristics. As he told the students, 1492 deploys a thematic approach in an attempt to leverage their fundamental research to identify key companies that will be participating in a particular high growth area of the economy.

Mr. Frohna also talked to the students about micro-cap equity investing.  He discussed his approach to screening and identifying attractive opportunities. In 1997 he became the portfolio manager of the nationally recognized First American Small Cap Growth Opportunities Fund (formerly the Firstar Small Cap Growth and Firstar Microcap Fund). His experiences and thoughts about how to evaluate stocks in the micro-cap space were appreciated by the AIM students.

Jim Kitzinger of KLCM visited the AIM class this week

On Wednesday, September 23^rd, Jim Kitzinger (CFA, CPA) visited the AIM class to talk about his firm’s investment strategy and process. He is a Principal and  Portfolio Manager at KLCM, an independent, registered investment advisory firm located in Milwaukee, Wisconsin. Mr. Kitzinger has over 30 years of investment experience.

He discussed KLCM’s equity investment philosophy and process by saying that they are bottom up stock pickers and focus on out of favor and neglected companies. They believe that cash flow is critical for shareholders and valuation – and to protect the downside. They seek firms that possess a catalyst to drive earnings and to realize value.

Consistent with the approach taken by students in the AIM program, KLCM’s process is driven by intensive research; an understanding of company and industry drivers; clear and achievable management objectives; and seek favorable risk/reward supported by valuation disciplines. They run concentrated portfolios of 25 to 30 stocks and will add to and trim positions to take advantage of market volatility and to manage risk.

The students asked questions and had an opportunity to talk with Mr. Kitzinger in more detail after class. We appreciate the efforts of local portfolio managers to visit our classroom – these meetings keep the ‘applied’ in the AIM program.

AIM Equity Presentations on Friday, September 18th Available on AIM Website

Last Friday (9/18/15) in the AIM Room there were five equity presentations:

 

 

To access these - all of the past AIM equity presentations - go to the AIM website at: http://business.marquette.edu/centers-and-programs/aimp-student-equity-write-ups

The session was well attended by AIM students and Marquette faculty. Starting in October the AIM students will be going on the road to pitch stocks at area investment firms.

Marquette AIM student, Daniel Fernandez, captures Milwaukee Tennis Classic championship!

Daniel Fernandez, a student in Marquette's AIM Class of 2016, took home the big prize at the 40th Annual Milwaukee Tennis Classic on Sunday at The Town Club in Fox Point. 

He’s the first Marquette student athlete to win the championship. The Marquette University senior beat the University of Wisconsin's Alexander Kokorev, 6-2, 6-4, to claim the men's singles championship.

Key Information: 

AIM Class: Senior, Class of 2016    

Hometown: Aguascaliente, Mexico    

High School: Tec de Monterre

During the 2014 season Daniel was an All-BIG EAST selection ... Named team's Most Valuable Player along with Kristiyan Trukov ... Compiled an overall singles mark of 19-11 ... Went 15-8 during the spring in singles play, including an 11-4 record from the No. 1 position ... Secured 13 doubles victories (10 in the spring), including eight with partner Vukasin Teofanovic ... Finished runner-up in singles at the Milwaukee Tennis Classic (Sept. 12-14) ... Played in the main draw consolation match at the ITA Midwest Regional (Oct. 16-18) ... Compiled a 4-3 singles record along with a 3-2 doubles record in the fall.

Bank of America Merrill Lynch Credit Analyst Program Info Session Held on Friday, 9/18/15 in AIM Room

Sean Morrissey (AIM 2014)

On Friday, September 18, 2015, an information session was held in the AIM room by Bank of America Merrill Lynch’s Nicholas Cheng, CFA, Vice President, Global Banking & Markets, and Sean Morrissey (Marquette AIM 2014), Analyst, Global Banking & Markets.   They presented background information about the Global Banking and Market (GBAM) 3-year Credit Risk Analyst Program. 

Sean and Nich helped the students in attendance understand GBAM’s approach to evaluating credit risk. They discussed the analyst program as an opportunity for entry level employees to work with bankers, product specialists and clients to structure and underwrite financing solutions and manage overall client risk. 

The session was well attended and the students are now better prepared for their September 25^th interviews with BAML. It was good to have Sean and Nick of BAML back on campus – we appreciate the partnership with Marquette.

Steven DeSanctis, Head of Small-Cap Strategy, Bank of America Merrill Lynch was the guest speaker in the AIM class

On Friday, September 18, 2015, Steve DeSanctis of Bank of America Merrill Lynch was the guest speaker in the AIM program. Mr. DeSanctis is one of the leading small capitalization equity strategies in the country – often appearing on CNBC and Bloomberg television.

He talked to the students about various past cycles and trends in the small cap market and offered some views about Q4 2015 and 2016. His presentation was well-received the students who were able to engage with him during and after class.

Timpani's strategy pays off in up, down markets

Journal Sentinel

          September 17, 2015

When Brandon Nelson decided to leave Wells Capital Management and start his own money management firm, he felt confident about the new endeavor.  

Although it was the biggest career move of his life, Nelson, who was then 36, knew he had the experience, drive and right partners to make Timpani Capital Management LLC work.

What Nelson didn't know is that within six months, the U.S. would be plunging into the worst economic downturn since the Great Depression.

"The timing was not good," said Nelson, who is now 43.

Nelson, a McFarland native, began working at Strong Funds after participating in the Applied Securities Analysis Program and graduating with a master's degree in finance from the University of Wisconsin-Madison. He stayed through Wells' acquisition of Strong, reaching the rank of managing director and senior portfolio manager. But by 2008, Nelson had the entrepreneurial itch.

"The bottom line is I wanted to be at a firm where I could move the needle more," Nelson said.

So on April 1, 2008 he and his partners launched Milwaukee-based Timpani, which is named after a type of drum, said Nelson, who played a snare with the UW-Madison marching band.

Nelson's partners — a group of employees from Frontier Partners in Northbrook, Ill. — provided key operational support and $1 million of assets to manage. In August 2008, London-based Momentum Global Investment Management Ltd., gave Nelson more than $60 million to manage.

"He had a strong background and good experience, a clear philosophy and process, and a passion to succeed," said Andrew Smith, head of research at Momentum, which oversees about $4 billion of client assets.

Key to that philosophy iA month after Momentum put the money with Timpani, Lehman Brothers filed for bankruptcy. That year, the stock market lost 37%. Momentum stuck with Timpani, despite the turmoil and an initial loss caused by the market decline.

"We were confident that over a long period of time Brandon's philosophy had potential to beat the market," Smith said.

During the stock market decline, most investors preferred "safe, household names" to Timpani's small company growth asset class, Nelson said. But he continued seeking new clients.

"It was about grinding through and surviving," he said.

Timpani has more than survived. The firm has grown assets under management to $348.5 million at the end of June, Nelson said.

The firm's mutual fund — Frontier Timpani Small Cap Growth (FTSGX) or (FTSYX) —has provided an average annual return of 19.21% for the three years ending Wednesday, which ranks it in the top 2% of its category, according to Morningstar Inc.

"They have a good team that through the difficult times stuck with what they do best – fundamental analysis on stocks," said Eric Nohelty, a consultant at Alpha Investment Consulting Group in Milwaukee. "Brandon is one of the more thoughtful and insightful portfolio managers that we talk to."

Nelson says he and his investment team partners are so confident about Timpani that along with having personal investments in the fund, they decided to exercise an option to increase their stakes in the firm in August, bringing their combined ownership to 75%.

"We believe that's pretty telling of where we think our future lies," Nelson said.s a strategy Nelson says works in up and down markets. It involves a process that he says excels at finding big winners and protecting downside with a strict sell discipline.

Marquette FMA students will visit New York City in October

Dr. David Krause, AIM program director, will lead 25 students to New York City during fall break (October 21-24) --- the 13th consecutive year he has led the trip to Wall Street.

This year the students will be the guests of Shari Noonan (Marquette Bus Adm '96) at Deutsche Bank. Invitations have gone out to members of the Marquette financial community in the NY-NJ-CT area - if you wish to meet up with Dr. Krause and the Marquette finance students, please reach out to him at: aim@marquette.edu.

FOCUS ON THE US FEDERAL RESERVE BANK: 25 bps rise in the Fed Funds rate predicted

Global investors are watching closely whether or not the Fed will raise interest rates for the first time in close to a decade at a two-day policy meeting that begins today (Wednesday, September 16, 2015). The most recent Fed Funds futures imply less than a 30% chance of a rate increase this week; however, I believe they will raise rates by ¼ of a point.

I believe it is time to start gradually raising interest rates given that in the United States we have seen the job market that has achieved sufficient recovery – and more importantly, the Fed needs to been seen as long-term focused and consistent in their policies. The Fed has said for years that the decision to raise rates would be supported by long-term data (not short-term volatility) and that the summer of 2015 was when they felt comfortable raising rates. 

The other side of the argument is that interest rates should remain at their current level in the midst of the recent global stock market turmoil and China's apparent economic slowdown. And the argument is that inflation remains well below the Fed’s 2% target level. The Fed's highly watched decision is expected to be announced by Janet Yellen (Fed Chair) on Thursday at 1:00 pm CST.

Most investors are leaning toward the view that interest rates will remain on hold for at least another month; however, if Fed officials raise interest rates this week it will likely lead to a stronger U.S. dollar and more money could be drained from emerging markets. While that might be the case, I believe the Fed needs to begin the process of returning normalcy to the global markets by beginning the movement back to market determined interest rates. We’ll see what they decide tomorrow!

Marquette's Finance Specialty Program Ranked 21st by U.S.News

Marquette University is again among the top 100 national universities, according to U.S. News and World Report. In the online publication’s 2016 Best Colleges list, Marquette is ranked No. 86 – a decline from last year’s ranking of 76. The university is again included as an “A-plus School for B Students,” and the university is also 71 on the High School Counselor Rankings, up three spots from last year’s 74.

The College of Business Administration is also among the nation’s top 100. For the second year in a row, the business school ranked 93 among U.S. News’ Best Undergraduate Business Programs. Additionally, Marquette's finance specialty program was ranked 21st nationally - ahead of UW-Madison, which is ranked 22nd.  

See more at: http://today.marquette.edu/2015/09/university-ranked-in-top-100-by-u-s-news-business-programs-receive-high-marks/#sthash.lAXWNC8E.dpuf

Mike Klenn, AIM Alumnus, Presented to the AIM Students Today

Mike Klenn of Timpani Capital Management visited the AIM program today. Timpani is a Milwaukee-based investment manager focused on small cap growth investing. Information about Timpani can be found at: http://www.timpanicapital.com/.

Mike Klenn, CFA, is a Senior Analyst at Timpani. Prior to joining Timpani, he was a member of the Applied Investment Management Program at Marquette University running a portion of the endowment. He also interned at Timpani during his senior year of college. He received his B.S.B.A. in Finance from Marquette University and has earned the right to use the CFA designation.

Mike talked about Timpani’s investment philosophy. They believe that earnings drive stock price performance. By combining fundamental research with an analysis of estimate revisions, they believe they can identify and exploit the perception gap that exists between a company's business strength and the market's expectation of that strength. They add exposure to stocks where growth is being underestimated, or where there is a positive perception gap and we reduce exposure to stocks where growth is being overestimated, or where there is a negative perception gap. Perception gaps exist because the market is slow to react to incremental, relevant changes in a company’s fundamentals.

Later this semester, AIM students will conduct a ‘road trip’ to Timpani where they will pick stocks to the firm’s investment team (Brandon Nelson, Ryan Isherwood, and Mike Klenn).

Juniors: Current Internship Opportunities (access these on Career Manager)

Artisan Partners

               Corporate Accounting Intern        App deadline 9/27

Baird

               Investment Banking Analyst Intern             App deadline 10/14

              

               Internship - Finance Operations - Operations Risk                App deadline 9/18

               (Job ID #s: 57122 and 57166)

              

Heartland

               Research Intern App Deadline: 12/1

Lazard
               Investment Banking Summer Analyst         App Deadline 11/29; Interview 12/9

Introducing the new AIM Program Coordinator, Jessica Hoerres

We are very pleased to welcome Jessica Hoerres (pronounced ‘Harris’) as our new Program Coordinator for AIM!  Jessica’s first day was Tuesday, September 8^th and her office is located on the 4^thfloor - the new office adjacent to the AIM room. 

Jessica joins us from Professional Meetings Management Company where she was an Strategic Account Manager and Program Manager highlighting the Strategic Meetings Management Program (SMMP).  She brings a wealth of knowledge and experience to the position.

Jessica attended Missouri State University where she received a scholarship to play for their Division I Volleyball team and received numerous athletic awards including All-American and All-Conference. She received the prestigious Freshman Speaker of the Year award for her public speaking skills.

Her personal interests include volunteering for the American Cancer Society; coaching competitive youth and high school sports; and enjoying her family. She is an excellent addition to the AIM program.

It should be noted that we want to extend Lee Hovorka, the long-time AIM program coordinator, our best wishes as she has moved onward and upward at Marquette. She is now the assistant to the Dean of the College of Communications. I know that Lee and Jessica are already communicating and that the transition is going to go smoothly. 

Phone: 414-288-8024

Email: Jessica.Hoerres@Marquette.edu

Two Sets of AIM Equity Pitches During Week of September 7th

Dan Riley pitching Skullcandy (SKUL) 

The fall semester for Marquette students in the AIM program is off to a fast start.

The students in the AIM Class of 2017 were busy this week as there two separate sets of equity pitches. On 9/9, three stocks were pitched in the AIM Room (these were videoed and will be posted soon on the AIM website). And they on 9/11, five stock presentations were delivered at Baird by seniors in the AIM program (see article in AIM Blog about the AIM program’s annual field trip to Baird).  

The list below includes the student presenters and the companies they pitched. Complete write-ups can be found on the AIM website at: http://business.marquette.edu/centers-and-programs/aimp-student-equity-write-ups.

AIM Investment Banking / Private Equity Open House (with attachment to presentation material)

On Tuesday, September 8, 2015 an open house for the Investment Banking/Private Equity track was held in the AIM Room was held.

Dr. David Krause, AIM program director, and Mr. Jeff Germanotta, Adjunct Instructor of Finance, provided an overview of the IB/PE track. Mr. Germanotta teaches the Investment Banking course. Two current AIM seniors, Joanne Wycklendt and Paul Tran, also assisted in the presentation.

They discussed the opportunities within the industry and provided information about the various elements of the IB/PE track. Discussion also focused on the team structure and what a ‘day in the life of an analyst’ is like. The typical investment banking structure and model were also presented and Mr. Germanatto and Dr. Krause answered questions from the students in attendance. They also provided an overview of private equity.

Joanne and Paul talked about their summer internship experiences in investment banking and were available to help answer questions and meet with the students individually afterwards. They also talked about the National Investment Banking Competition (NIBC) where students are given a case study and asked to create a pitch book. Marquette will again be participating in the event which enables students to gain valuable experience in valuation - including DCF, LBO, precedent transactions, comparable companies, and accretion/dilution models. Last year’s team had an opportunity to pitch their case at the national convention in Vancouver in front a group of bankers from many of the top investment banks.

 As promised, here is the link to the slide presentation:  http://business.marquette.edu/Content/Uploads/AIM/Applied_Investment_Management_IBPE_Track_Open_House_9_8_15.pdf

AIM Open House (with attachment to presentation material)

Marquette University's Applied Investment Management (AIM) program - Open House

On Friday, September 4, 2015 an open house in the AIM Room was held. The turnout was outstanding despite the fact that several students had athletic and other commitments and were unable to attend.

Dr. Krause provided an overview of the AIM program. He also discussed the application process – and Katherine Atkinson (College of Business Career Services office) spoke about resume preparation and how students can best utilize Career Manager for internship and job searches. They then answered questions from the students about the AIM program and application process.

Several current members of the AIM Class of 2016 were in attendance to help answer questions and meet with the students individually afterwards.

As promised, here is the link to the slide presentation:  http://business.marquette.edu/content/uploads/AIM/AIMInformation9-15.pdf 

AIM program adds experienced adjuncts to support curriculum

The AIM program continues to add important players to the team:

·        Dr. David Krause, AIM program director teaches: Introduction to AIM, Equity Valuation, Fixed Income Securities, Portfolio Management, Alternative Investments, and Private Equity and Ethics.

·        Mr. Bill Walker teaches Investments and International Finance.

·        Mr. Chris Merker teaches Investment Ethics/

·        Mr. Jeff Germanatto teaches Investment Banking and Private Equity.

·        Mr. Michael Wagner teaches Entrepreneurial Finance and  Alternative Investments)

·        Mr. Scott Hawig teaches Advanced Financial Modeling.

·        Ms. Jessica Hoerres will become the new AIM Program Coordinator.

Dr. Krause said, “We have the people in place to support the AIM program from both an administrative and instructional standpoint. This group has more than 100 years of combined experience in industry and academia – and all are committed to maintaining AIM one of the very best applied finance programs.”

Bob Organ visited the AIM Class of 2016 and talked about 'disruptive innovation'

Bob Organ, Director, Northwestern Mutual Capital, (Marquette University alumnus) gave a lecture in the AIM program on “Digitialization and its Disruptive Potential” during class on September 2, 2015.  He talked about how digitalization is increasing at an exponential pace and is creating a path for disruptive innovations (e.g. Uber, Telsa). Mr. Organ also presented a fundamental framework for understanding this phenomenon and some of the potential effects on consumers and businesses. He noted that disruptive innovation helps create new markets and eventually disrupts an existing market - displacing earlier technologies.

After hearing the lecture the students are required to scour various sources of information (i.e. Bloomberg, FactSet, Wall Street Journal Business and Technology, The Economist, etc.) to find stories about a business or technology that they see as having a future ‘disruptive potential’ impact on their industry sector. Here are some examples of disruptive technologies that were discussed both during and after Mr. Organ’s visit:

·       Robots and Drones

·       Crowdsourcing

·       Outer-Space/Asteroid Mining

·       Hybrid Electricity Generation and Storage

·       Big Data

·       Machine Learning (Artificial Intelligence)

·       Virtual Reality

·       Digital Currency

·       Internet of Things

·       Genetic Engineering / Cloning

 

2105 AIM alumnus, Mike Stankovsky, Analyst at Northwestern Mutual Capital, also visited with the AIM students. He talked about his experiences at NMC and career track opportunities in the area of private equity.  

Dr. Krause, AIM Director, commented on the lecture, “This was a great way to start the semester since Bob and Mike talked about the implications of disruptive innovation from the perspective of the financial analyst. They gave the students ideas about how to identify which businesses and industries that are most susceptible to disruptive moments; how potentially disruptive technologies can be valued; how to evaluate the disrupted businesses; and how to avoid missing the key inflation points.”