Investment Management Club

Kickoff MeetingSeptember 27, 2007

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2007-2008 Leadership Team

Prior Experience Summer Internship

James RichInvestment Banking

Private EquityD.E. Shaw & Co.

Ben HockenbergInvestment Banking

Private EquityVenor Capital Management

Scott HartmanInvestment Banking

Private EquitySirios Capital Management

Ed LalanneSales & Trading

Hedge Fund

Starting Hedge

Fund

Faculty Advisor: Professor Korajczyk

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Role of the IMC

Educating students about portfolio management and various styles of investing

Providing students with the resources to obtain investment management internships and full-time positions

Advancing the reputation of Kellogg as a top-tier investment management program

Facilitating the exchange of investment ideas (for interview preparation or personal interest)

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Investment Management Trends

The investment management industry has undergone substantial change in the past several years

The number of investment management firms has grown rapidly, driven primarily by hedge funds

Firms are responding to the resulting increased competition for returns by enhancing research capabilities / intellectual capital

Growth in assets under management has caused firms to expand beyond core strategies (debt/equity, private/public, domestic/international, real estate)

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What Does This Mean For Recruiting?

There is growing demand for MBAs in the investment management industry

More firms are establishing formal internship programs

The investment management recruiting process remains highly unstructured vis-à-vis banking or consulting

Plenty of opportunities exist, but you should be prepared to have a lengthy recruiting process that could last well into the spring

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Recruiting Prep

1. Start now!

2. Stay informed: follow the capital markets, read the Wall Street Journal, Barron’s and anything else you find useful, follow specific stocks/sectors, invest on your own…

3. Have a well thought out opinion: Why are you pitching a particular stock in an interview? Where is the market heading? Where is the price of oil heading?

4. Attend IMC Club meetings and pitch stocks

5. Take Finance and Accounting courses

6. Take advantage of everything Kellogg and the IMC has to offer: CMC library resources, resume review, mock interviews, speakers, alumni network, interactions with the Asset Management Practicum, lunch/meetings with 2nd years…

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Investment Management Firms

Investment Banks Sales & Trading Private Wealth Management Sell-Side Equity Research Asset Management Divisions

Mutual Funds Hedge Funds Fund of Funds Insurance Companies Pension Funds University & Non-Profit Endowments

On-Campus Job Search

Off-Campus Job Search

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Sample Firms That Have Recruited @ KelloggABN AMRO Dorchester Capital Advisors Preservation Capital Acacia Capital Falcon Investment Mgmt. Prudential Financial/Capital GroupAEGON USA Fidelity Investments Pzena Investment Mgmt. Andor Capital Glazer Capital Mgmt. Ritchie Capital Mgmt.AQR Capital Mgmt. Goldman Sachs PWM SAC Capital AdvisorsAragon Global Mgmt. Group G Capital Sawdust Investment Mgmt. Ariel Capital Mgmt Highland Capital Mgmt. Scout Capital Arisaig Partners Hillenbrand Partners Sirios Capital Mgmt. Asian Century Quest Holland Capital Mgmt. Standard Pacific Capital Barclays Hound Partners Stark InvestmentsBasswood Partners Janus Capital Group Steel Partners Japan Black River Asset Mgmt. Leucadia National Stone Tower Capital BlackRock Longacre Fund Mgmt. Susquehanna Int'l GroupBrandes Investment Partners Luxor Capital Group T. Rowe Price Calamos Investments MWS Capital Taiyo Pacifi Partners CarVal Investors Nikko Asset Mgmt. Tarpon Investiments China Asset Mgmt. Northwestern Investment Mgmt. Thornburg Investment Mgmt.Citadel Investment Group Nuveen Investments Tiger Asia Mgmt.Coghill Capital Oaktree Capital Mgmt. Timeless Investment Mgmt. Columbia Wanger Offit Hall Capital Mgmt. Trellus Management Core Capital Mgmt. OSCM LLC UBS Asset Mgmt.CSFB Private Banking OSS Capital W.R. Huff Asset Mgmt.D.E. Shaw & Co. PAAMCO Wellington Management Davidson Kempner Capital PIMCO Whitebox AdvisorsDeephaven Capital Mgmt. Plainfield Asset Mgmt. Zan Partners

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Last Year’s Recruiting Environment

~200 positions in investment management were available to Kellogg students last year

27 first-year students reported to the CMC that they worked in IM during the summer

Summer Internship Acceptances by Month

0%

10%

20%

30%

40%

50%

60%

February March April May June

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MBA Competitions Cornell Stock Pitch Competition - 11/2 – 11/3

Sponsored by Wellington, Fidelity, Barclays, UBS, TIAA-CREF Resume book provided to recruiters Application to Kellogg IMC due 10/1 More information available at www.mbastockpitch.com

Evergreen Investments Alpha Challenge @ UNC – 11/9 Sponsored by Evergreen Investments, Morgan Stanley, Fidelity,

Chilton Investment Company Application to Kellogg IMC due 10/1 More information available at www.alphachallenge.com

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IMC Meetings and Events this Fall Club meetings consisting of stock pitches and other activities

including: A security analysis primer from Professor Vincent 2nd Year internship panel Industry speakers Course registration advice

First year mentorship program (details forthcoming)

In addition to weekly meetings, the IMC is planning: Resume review and mock interviews Tour of CMC library resources Outside speakers Events with the Asset Management Program Social events

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Upcoming Events

October 1st, 10:00am: Deadline to register for stock pitch competitions

October 3rd, 7:00pm: David Kabiller – AQR Capital Management - “Demystifying Hedge Funds”

October 4th, 12:15pm: Careers in Finance 2nd Year Panel

October 11th, 12:15pm: PIMCO – “Intro to Fixed Income Investing”

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Leadership Opportunities for New Students

We are offering several opportunities for 1st Year and 1Y students to get involved in the IMC, including: Media Club Coordinator Alumni Relations Coordinator Speaker / Events Coordinator Admissions Coordinator Webmaster

If you are interested in applying for one of these positions, please sign up on the sheet in the front of the room

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Media Club Media Club is a packet of investment management topical

articles & media of interest sourced from all members of the IMC

Please email clalanne2008@kellogg.northwestern.edu soft copies of articles of interest that pertain to the investment management industry; investment ideas; fund management & strategy; anything you read that you found interesting and feel club members would benefit from – Media Club’s success depends on its members – if you read something of interest, err on the side of sending it

Hard Copies of new Media Clubs will be available monthly at IMC meetings; we are working on sending Acrobat soft copies via email

Examples: articles from Barron’s, WSJ, McKinsey Quarterly, excerpts from books, industry interviews, articles from Forbes, Fortune, Business Week, etc

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Asset Management Practicum

New academic curriculum taught by Professor Korajczyk Students manage a portion of Kellogg’s endowment (currently $2.5m) Rotating roles: industry analysts, traders, portfolio managers,

quantitative strategy analysts Speakers and investment theory sessions also a part of the program

3 or 4 quarter program that begins in the spring of 1st year Must take full sequence (3 or 4 quarters) to earn credit Students admitted to program based on application with limited course

bidding

Full information session on AMP planned for November

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Q&A