McClain - Haslam College of Business
Transcript of McClain - Haslam College of Business
Year End ReportOctober 2019 - September 2020
M McClain T O R C H F U N D
Dear Mr. and Mrs. McClain, It is often said that a good education is the greatest gift you can give someone. As undergraduate students, theability to manage a portfolio with real money and real consequences is an unrivaled experience that gives usexposure to the opportunities that a career in value investing would present. The Torch Fund program hastested our understanding of the market and our value investing skills; it continually drives us to be betterstudents, teammates, and leaders. To properly represent the McClain legacy, we are challenging our educationevery day as portfolio managers to pay homage to the managers that came before us and pave the way for thosethat are certain to follow in our footsteps. As a team, we have capitalized on our diverse learning experiences and skills to navigate one of the mostuncertain markets in recent history. Thanks to our collective academic drive, we were able to effectivelycapitalize on the unique investment opportunities the market had to offer. We regularly evaluate our holdingsfor potential risks and continuously look for high quality businesses with payout potential to invest in. Thisperiod, we liquidated our DIS, FIVE, JOUT, LH, and TAP positions. These liquidations provided the financingfor an abundance of strategic purchases during the period; DLR, KMB, LMT, MC, MDT, MSFT, MTCH, andNEE were all exciting additions made to the portfolio in P3. Looking forward, we will continue to monitor thesenew additions, along with all other holds, to increase the prosperity of the fund. This period, the McClain Fund generated absolute returns of 26.37% relative to our benchmark’s absolute returnof 20.68%. This difference makes our relative return 5.69%. In terms of tenure, the McClain Fund generatedabsolute returns of 0.39%, while our benchmark returned (5.65%) – leaving us a relative return of 6.04% for theyear. Compared to the other funds, the McClain Fund generated the greatest relative return for P3 and tenure. Being members of the McClain Torch Fund has presented so many invaluable opportunities that cannot beoverstated. We are mindful of the profound impact this educational opportunity has had -- and will continue tohave -- on our development as young portfolio managers. We only hope to prove your investment worthwhile bydemonstrating our drive, skill, and growth as value investors. We attempt to pay your investment forward byproviding additional funding for future generations of fund managers to work with. We are forever grateful forthe one investment – your investment in our education – that has made all the difference. Thank you. Sincerely,
M
Account Summary (P3) Portfolio Value as of 3-31-20 221,339.75 Contributions 0 Withdrawals 0 Realized Gains (1,943.74) Unrealized Gains 58,860.87 Interest 9.38 Dividends 1437 Portfolio Value as of 9-30-20 279,703.26
Performance Summary P1 P2 P3 Tenure
McClain Torch Fund 6.50% (25.40%) 26.37% 0.39% Russell 3000 Value Index 7.44% (27.21%) 20.68% (5.68%)
Other Indices P1 P2 P3 Tenure
CPI + 7% 9.07% 9.10% 7.78% 8.43% S&P 500 Index 9.04% (19.53%) 31.21% 14.94%
Risk/Return Metrics* McClain Torch Fund P1 P2 P3 Tenure
Sharpe Ratio 2.69 (2.10) 1.95 0.16 Treynor Ratio 0.30 (1.25) 0.67 0.06
Russell 3000 Value Index
Sharpe Ratio 2.97 (1.94) 1.45 0.01 Treynor Ratio 0.28 (1.13) 0.42 0.00
*Annualized measures
Best Performers
Security P3 Tenure Weight
PayPal Holdings, Inc. 105.80% 86.55% 8.49%
InterActive Corp. 85.38% 51.92% 3.92%
Owens Corning 78.54% 9.61% 3.53%
Encore Capital Group, Inc. 65.06% 16.94% 1.35%
Facebook, Inc. 57.01% 42.16% 3.58%
Worst Performers
Security P3 Tenure Weight
Universal Insurance Holdings, Inc. (20.98%) (51.29%) 3.26%
ICU Medical, Inc. (9.42%) 0.36% 5.71%
CVS Health Corp. 0.12% 0.87% 4.51%
Cisco Systems, Inc. 2.04% (10.65%) 5.06%
Lockheed Martin Corp. 2.31% 2.31% 3.26%
*All weights expressed as of end of day 9/30/2020
McClain Sector Weights
Portfolio AppraisalUT-McClain Torch Fund
9/30/2020
Quantity Security Unit Cost Price Market Value Percent Assets
COMMON STOCK
Consumer Staples
22 Kimberly-Clark Corporation 132.10 147.66 3,248.52 1.16
3,248.52 1.16
Health Care
135 Alexion Pharmaceuticals, Inc. 94.00 114.43 15,448.05 5.52
191 CVS Health Corporation 69.85 58.40 11,154.40 3.99
78 ICU Medical, Inc. 182.11 182.76 14,255.28 5.10
85 Laboratory Corporation of America Holdings 154.07 188.27 16,002.95 5.72
65 Medtronic PLC 94.86 103.92 6,754.80 2.41
63,615.48 22.74
Industrials
25 Lockheed Martin Corporation 379.33 383.28 9,582.00
218 Owens Corning 61.71 68.81 15,000.58 5.36
24,582.58 8.79
Information Technology
307 Cisco Systems, Inc. 45.45 39.39 12,092.73 4.32
21 Microsoft, Inc. 165.42 210.33 4,416.93 1.58
132 Paypal Holdings Inc. 87.71 197.03 26,007.96 9.30
76 Visa, Inc. - Class A 136.38 199.97 15,197.72 5.43
57,715.34 20.63
Communication Services
441 Discovery, Inc. 30.86 21.77 9,600.57 3.43
134 Electronic Arts, Inc. 102.17 130.41 17,474.94 6.25
72 Facebook, Inc. 144.85 261.90 18,856.80 6.74
64 IAC/InterActiveCorp 60.78 119.78 7,665.92 2.74
138 Match Group, Inc. 98.92 110.65 15,269.70 5.46
68,867.93 24.62
Energy
231 Marathon Petroleum Corporation 61.68 29.34 6,777.54 2.42
6,777.54 2.42
Financials
160 Encore Capital Group, Inc. 33.00 38.59 6,174.40 2.21
158 Moelis & Company 29.55 35.14 5,552.12 1.99
490 Universal Insurance Holdings, Inc. 24.37 13.84 6,781.60 2.42
18,508.12 6.62
Real Estate
44 Digital Realty Trust, Inc. 137.53 146.76 6,457.44 2.31
6,457.44 2.31
Utilities
15 Nextera Energy, Inc. 235.33 277.56 4,163.40 1.49
4,163.40 1.49
COMMON STOCK Total 253,936.35 90.79
CASH AND EQUIVALENTS
Fidelity Cash Reserves 25,766.91 9.21
Total Portfolio 279,703.26 100.00
Purchases and SalesUT-McClain Torch Fund
From 4/1/2020 to 9/30/2020
Date Quantity Price Company Ticker Amount
Purchases
4/9/2020 22 132.10$ Kimberly-Clark Corporation KMB 2,906.11$
4/9/2020 158 29.55$ Moelis & Company MC 4,669.66$
4/9/2020 23 100.66$ Medtronic PLC MDT 2,315.18$
4/9/2020 7 165.00$ Microsoft, Inc. MSFT 1,155.00$
4/9/2020 5 236.00$ Nextera Energy, Inc. NEE 1,180.00$
4/13/2020 21 140.50$ Digital Realty Trust, Inc. DLR 2,950.50$
4/13/2020 7 162.95$ Microsoft, Inc. MSFT 1,140.65$
4/13/2020 5 236.00$ Nextera Energy, Inc. NEE 1,180.00$
4/15/2020 5 140.00$ Digital Realty Trust, Inc. DLR 700.00$
4/15/2020 12 96.36$ Medtronic PLC MDT 1,156.32$
4/16/2020 25 379.33$ Lockheed Martin Corporation LMT 9,483.28$
4/21/2020 7 168.31$ Microsoft, Inc. MSFT 1,178.17$
4/21/2020 5 234.00$ Nextera Energy, Inc. NEE 1,170.00$
5/12/2020 9 136.00$ Digital Realty Trust, Inc. DLR 1,224.00$
5/15/2020 9 130.74$ Digital Realty Trust, Inc. DLR 1,176.66$
6/11/2020 10 90.94$ Medtronic PLC MDT 909.40$
6/24/2020 10 90.00$ Medtronic PLC MDT 900.00$
6/26/2020 10 88.50$ Medtronic PLC MDT 885.00$
Sales
4/6/2020 97 98.00$ The Walt Disney Company DIS 9,505.78$
4/6/2020 116 69.00$ Five Below, Inc. FIVE 8,003.82$
4/16/2020 88 56.80$ Johnson Outdoors Inc. JOUT 4,998.28$
4/17/2020 100 59.47$ Johnson Outdoors Inc. JOUT 5,946.86$
7/1/2020 95 35.31$ Molson Coors Beverage Company TAP 3,354.61$
7/14/2020 176 34.89$ Molson Coors Beverage Company TAP 6,140.50$
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$114.43 $145.00 $21.96B $9.99 11.12 27.44%
Alexion Pharmaceuticals, Inc.
(ALXN)
Description: Alexion Pharmaceuticals, Inc. is a biopharmaceutical company that focuses on the development of
biologics. They research novel molecules to treat rare and ultra-rare diseases. Recognized as a global leader in the
complement cascade for their C5 portfolio including blockbuster Soliris and recently approved biosimilar Ultomiris, they
are continuing to expand their footprint into new indications and therapeutic areas.
Investment Thesis:
Alexion continues to show strong growth in key markets
while also remaining best or first in class in specific
treatments.
Recently, Alexion received approval for Ultomiris
treatments in Japan, opening that market to receive
treatment. Alexion also received regulatory approval from
European regulators for the use of new advanced
formulations of Ultomiris. Such regulatory approvals have
allowed Alexion to achieve a best-in-class conversion rate
for PNH Ultomiris in the last 18 months.1
Currently, Alexion projects rapid expansion opportunities
in markets they currently serve, as they are on track to
achieve 4x growth expansion in US gMG and NMOSD
neurology patients by 2025.1
At this time, we believe that Alexion has ample room to
grow as they continue to capture market share in a high
barrier to entry sub-industry via continued regulatory
approvals and drug pipeline growth. Futhermore, the
innate stickiness of their consumer base allows for Alexion
to achieve a share repurchase amount to that of an
estimated 1/3 of FCF in the coming years.1
Return Compared to Related Indices
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$39.39 $47.93 $166.75B $2.84 13.87 2.04%
Cisco Systems Inc.
(CSCO)
Description: Cisco Systems is one of the largest manufacturers of network gear -- routers, switches, and servers as well
as software -- that moves information around the internet and corporate networks. Cisco, which has dominated the
market for internet protocol-based networking equipment, also makes security software, internet conferencing systems
and provides IT services to their customers.
Investment Thesis: Cisco has for years captured around 1/2 of the market’s IT hardware spending and expects to retain a firm grasp of the market through the Catalyst 9000 platfrom and a variety of networking hardware. The Catalyst 9000 platform is expected to be a $44B multi-year upgrade opportunity for its campus switching clients.
Recently, Cisco has strategically been prioritizing growth
towards the software and IT services portions of their
business model as they expect these key business units to
be the major growth drivers for years to come as business’s
adopt cloud networking solutions and move away from a
in-house, private IT systems. We believe this focus will
provide a more wholistic business model as they will be
able to provide the hardware, software, security packages,
and on-going service that today’s business needs to be
competitive, secure, and value-adding.
Cisco is in the processs of adapting their business model
from one-time purchases and perpetual licensing to
subscription-based and recurring revenue streams. We
believe this will provide Cisco with a much more resilient
financial position ontop of its already astronomical cash
flow generating capabilities.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$58.40 $98.00 $76.43B $7.22 8.59 0.12%
CVS Health Corp (CVS)
Description: CVS Health Corp is a leading healthcare-services company operating through its 3 segments: Pharmacy
Services, Retail/LTC, and Health Care Benefits, a newly created segment as a result of of their merger with Aetna in
2018. They are one of the largest pharmacies and drug store chains with over 9,900 retail locations, around 1,100 walk-
in medical clinics, and a major pharmacy benefits manager with over 92 million members.
Investment Thesis:
CVS continues to be the premier end-to-end healthcare
services provider. Since the COVID-19 crash, CVS has
seen retail growth begin to normalize.1 CVS has also began
to rollout more integrated offerings with Aetna’s clientele.
With their newly announced diabetes management
program, CVS has two of Aetna’s largest Medicare clients
planning to enroll as early as 4Q20 with self-insured Aenta
clients being able to enroll in 2021.1
On the HealthHub® front, CVS has introduced a new
Behavioral Health offering to be available in 2021.
Continued COVID-19 impacts have allowed for a 15%
increase in HealthHub® visits via Telehealth, an offering
CVS looks to continue to promote post-COVID.1
CVS has also improved leverage ratios as they target a
leverage ratio in the low 3x’s in 2022.2 With their new
tender offer of $6B in 3Q20, CVS was able to pay down
$2B worth of net debt which flattened their debt schedule
and lowered overall interest expense.2
We believe CVS’s normalizing growth, new integrated
offerings with Aetna, and their continued focus on driving
down leverage ratios will allow for future deployment of
capital in the form of increased dividends and the start of
share repurchases.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$21.77 $24.75 $14.45B $2.41 8.92 11.99%
Discovery Inc. (DISCA)
Description: Discovery Inc. is a non-fiction entertainment company that runs a large variety of educational television
channels. DISCA’s global media is distributed across a variety of platforms and is one of the largest pay-TV programmers
offering a variety of entertainment including Animal Planet, the Food Network, HGTV, and TLC.
Investment Thesis:
Discovery Inc. struggled through the first couple months of the
COVID-19 pandemic but is now performing much better.
Although the first half of their fiscal year showed a year-over-
year decrease in revenue and net income, DISCA has just
acquired AdSparx, an ad-tech start-up providing a cloud-based
technology platform for live and on demand streaming that will
aid in their continued recovery from the pandemic.
During shelter-in-place orders, many looked to fill their
additional free time with easily-accessible, everyday
entertainment. Since sports were cancelled and many didn’t
want to watch the news, Discovery’s diverse portfolio of
cooking, home improvement, and reality TV shows were able
to fill its watcher’s content void. Additionally, Discovery’s
shows were able to continue recording even with social
distancing guidelines. Discovery’s additional viewers and ability
to generate content continues to keep DISCA competitive
during the pandemic.
Discovery Inc. will be launching a streaming service at the
beginning of 2021. Discovery’s streaming option (to be called
Discovery+) will provide subscribers additional opportunities
to watch content at their leisure – paid and ad-free or otherwise.
DISCA, with its differentiated portfolio of low-cost content, is
well positioned to serve its niche target audience relative to its
peers.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$146.76 $164.82 $39.47B $2.86 51.31 8.34%
Digital Realty Trust
(DLR)
Description: Digital Realty Trust is a real estate investment trust that houses and maintains cloud operating
infrastructure. Customers rent out either DLR’s existing server storage or the customer brings in their own hardware for
DLR to store at one of their 270 global data centers. DLR provides flexible build-to-suite data storage or colocation
offerings that lower data storage and computing costs versus maintaining a data store inhouse.
Investment Thesis:
The demand for cost effective cloud computing and data
storage is exponentially increasing as today’s business
world collects, stores, and analyzes more data than ever
before. Digital Realty Trust is at the forefront of the hyper-
scale data storage industry and is poised to effectively
capture this growing need. Digital Realty Trust is rapidly
expanding with their newest acquisition of Interxion giving
them a total of 270 data centers globally and a footprint in
affluent Asian & European cities such as Paris, Hong
Kong, Sydney and Madrid.
As the demand for automated intelligence, internet of
things, and driver-less vehicles expand in the market, the
need to store the captured data will become more and
more of a necessity. CEO Bill Stein was interviewed about
the potential for data centers in a computer driven world
and he commented on how automated vehicles require
about 3000x more data per trip than our brains need to
drive. Automated vehicles will need multiple data centers
to quickly and efficiently relay information off of.1
Furthermore, handheld & a growing number of household
devices rely on cloud computing and data storage to make
their products functional. This grows the need for Digital
Realty Trust’s suite of services and multiple locations.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$130.41 $159.84 $37.66B $6.85 19.04 30.19%
Electronic Arts Inc.
(EA)
Description: : Electronic Arts (EA) is a global leader in digital interactive entertainment. Its leading titles are Madden
NFL, FIFA, and Star Wars, all of which it licenses from other companies, and its own Battlefield, Apex Legends, and
The Sims. While EA generates increasing sales from games sold, the bulk of its revenue comes from live services. The
company is also moving into eSports with its Competitive Gaming Division.
Investment Thesis:
EA has published a well-reviewed game in every gaming
sub-market that exists. From sports, to shooters, to action-
adventures, and beyond, EA has created high quality titles
for every type of gamer. In this time of shortened/non-
existent pro-sports schedules, EA’s sports titles are
particularly attractive entertainment outlets for sports fans.
EA has seen 100%+ growth YoY in new player acquisition
in both Madden and FIFA, its two largest sports titles.
Many of these new players will be retained post-quarantine
and become integral parts of EA’s ecosystem, contributing
to its bottom line for years to come.
Next-generation consoles will be released in November
2020. EA recently partnered with Microsoft (MSFT) to
provide EA Play as part of MSFT’s game pass. This gives
EA an increased opportunity to capitalize on pre-existing
franchises with live services rather than having to make
new, risky IPs. As games become more compelling and
accessible with improved technology and game
subscription services, a continued structural shift towards
gaming as a choice form of entertainment is likely to occur.
Secular trends towards gaming and EA’s hold on the
sports market makes EA a strong holding in today’s
environment.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$38.59 $49.87 $1.21B $6.82 5.66 65.06%
Encore Capital Group, Inc.
(ECPG)
Description: Encore Capital Group is an international specialty finance company providing debt recovery solutions and
other related services for consumers across a broad range of financial assets. Encore primarily purchases portfolios of
defaulted consumer receivables at deep discounts to face value and manages them by working with individuals as they
repay their obligations and work toward financial recovery.
Investment Thesis:
Encore Capital Group is the leading purchaser of non-performing loan portfolios in an industry with high barriers to entry. In an innately high barrier to entry industry, Encore’s business model allows them to acquire consumer debt portfolios at a steep discount, yielding strong return on investment. In 2Q20, Encore saw record revenues of $426M, up 23% compared to the prior year period.1 Encore is poised for strong earnings growth, as substantial increases in charged-off recoverables are expected to come to market in 2021. Encore is positioned to capitalize on a 13% increase in estimated remaining collections (ERC), as they continue to deleverage and build liquidity, reducing their debt/equity ratio to 3.2x and holding cash & equivalents of $293.8M.1 Moreover, a recently announced combinatiton of their U.S. and European funding structures, MCM and Cabot, is expected to create cost-savings while simultaneously allowing Encore to broaden their geographic footprint, positioning them to become a global leader in debt purchasing.2 With banks’ charge-off rates at six-year highs and defaults expected to rise in the absence of additional fiscal stimulus, Encore is poised for further growth and increased market share moving forward.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$261.90 $302.00 $74.11B $8.19 31.98 57.01%
Facebook, Inc.
(FB)
Description: Facebook, Inc. builds products that help people learn about what is going on in the world around them,
enable people to share their opinions, ideas, photos and videos, and other activities with audiences ranging from their
closest family members and friends to the public at large, and stay connected everywhere by accessing their useful
products. Its social portfolio consists of Facebook, Instagram, Messenger, WhatsApp, and Oculus.
Investment Thesis:
COVID-19 has accelerated businesses’ need to sell goods
online effectively; those lacking e-commerce channels
quickly lost revenue during shelter-in-place orders. With
the introduction of “Facebook Shops” and similar
products, Facebook, Inc. has made it easier for SMBs to
sell goods and communicate with customers online. It is
quickly shaping up to be a significant market player in this
space. The company earns fees at checkout as well as in
advertising.
Facebook, Inc.’s monthly active people has continued to
grow. Though global advertising spend generally has slid
more than 30%, Facebook, Inc.’s ARPU YoY has
remained steady. Facebook’s targeted advertising is
indispensable to SMBs because it produces more value
than broader advertising schemes. We are still early on in
the development of advertising targetability and ROI
measurement. As these improve further, Facebook’s
targeted advertising moat will continue to grow.
As the far-and-away market leader in the realm of social
media, Facebook presents itself as a superior holding due
to its ability to service its consumers (businesses) and hold
its suppliers (people) captive.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$119.78 $160.00 $10.22B N.A. N.A. (33.17%)
InterActive Corp.
(IAC)
Description: IAC/InterActiveCorp (IAC) has a portfolio of websites including influential brands with a fair share of
name recognition. IAC revenues come from five business segments: ANGI Homeservices, Vimeo, Dotdash, Search, and
Emerging & Other. IAC has become known for incubating businesses and spinning them off into separate companies;
IAC recently spun off its dating service providers, Match Group, in 2Q20.
Investment Thesis:
Earlier this year, IAC successfully spun off Match Group.
Match Group assumed all of IAC’s prior debt. IAC used
some of the cash it received from the spin-off to
accumulate a 12% interest in MGM Resorts International
for an aggregate of $1.02B on a cost basis of ~$17.25 per
share (trading at $21.75 per share now). Having a “near-
zero” stub value and playing an instrumental role in the
development of the online gambling space, MGM
represented a unique and cheap investment opportunity
for IAC.
As much more of current everyday, normal life revolves
around the home than in recent history, the demand for
previously ignorable home improvements/repairs has
increased. As the largest player in the severely fragmented
space of service contracting, ANGI is the first avenue
turned to by consumers lacking traditional word-of-mouth
recommendations in this time of limited interaction. More
consumers turning towards ANGI will incentivize more
contracters to use ANGI to market their services, resulting
in accelerating market share growth in the home services
space.
With its variety of growing, influential brands and MGM
investment, IAC will continue to generate strong returns.
Return Compared to Related Indices
0%
5%
10%
15%
20%
MarketplaceService
Requests
MarketplaceRevenue perMonetizedTransaction
MarketplaceRevenue perTransactingProfessional
AdvertisingService
Professionals
ANGI Q2 Y/Y Growth
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$182.76 $204.00 $3.83B $1.31 31.87 (9.42%)
ICU Medical, Inc. (ICUI)
Description: ICU Medical, Inc. develops, manufactures, and sells products used in infusion therapy, IV systems, and
critical care applications. They are the number one provider of IV sets, needlefree connectors, and oncology CSTDS.
Their primary customers are acute care hospitals, wholesalers, ambulatory clinics and other health care facilities and
providers.
Investment Thesis:
ICU Medical has historically and is currently the best or
second best performer in each of the segments they serve
and continue to provide the most preferred solutions in
the IV Solutions and Infusion Pumps segments. Recently,
ICU has seen significant opportunity in their oncology
segment, as regulatory approval of the USP <800> drives
futher CSTDS adoption.1
ICU is also developing various software offerings in order
to futher integrate products across product lines. ICU’s
MedNet™ continues to provide complete IV-EHR
interoperability, providing analytical leverage to vendors.
ICU is also developing software to leverage with their
oncology offerings in order to further differentiate
themselves in the rapidly growing segment.
Across their segments, patient admits are a key metric to
observe as COVID-19 pressures begin to fade. ICU sees
COVID-19 losses offset by gains in their most
differentiated product lines for FY 2020.2
With continued customer stickiness across various
product lines, various innovative solutions leveraging
software, and a more than comfortable cash position at
$14/share, ICU is primed for growth moving forward.1
Return Compared to Related Indices
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$147.66 $157.08 $50.28B $7.42 19.57 12.59%
Kimberly-Clark Corporation
(KMB)
Description: Kimberly-Clark Corporation is a global hygiene and health company that focuses on manufacturing and
producing consumer goods. KMB produces a variety of goods including paper towels, tissues, disposable face masks,
and diapers. Their products are sold in countries all over the world. Some of their most popular brands include Huggies,
Kotex, Scott, and Kleenex.
Investment Thesis:
Kimberly-Clark remains one of the largest producers of
household essential items in the United States. KMB
currently generates more than 50% of its sales in the U.S.
but is working on growing more globally, specifically in
China, Eastern Europe, ASEAN, and Latin America.
The impacts of COVID-19 showed very little negative
effects on a company as large and relevant as KMB. Not
only did KMB come back from the COVID-19 downfall,
but their share price is higher than it was before COVID-
19 hit. Due to the importance of each product they
manufacture, the company has shown great resilience
during the global pandemic.
KMB is in the process of acquiring the Indonesian diaper
maker, Softex for approximately $1.2B. Softex is a growing
company with a large following of Indonesian consumers.
This acquisition will help Kimberly-Clark to speed up their
presence within Southeast Asia. The company’s CEO,
Mike Hsu adderessed Indonesia as being the sixth largest
diaper market in the world and they expect it to grow to
the third largest within the next ten years.
Return Compared to Related Indices
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$188.27 $210.00 $18.34B $4.76 21.44 48.96%
Laboratory Corporation of
America Holdings (LH)
Description: Laboratory Corporation of America Holdings (LabCorp) provides and develops clinical laboratory services.
Its LabCorp Diagnostics (LCD) segment serves a variety of healthcare providers and organizations. Through its other
major segment Covance Drug Development (CDD), it provides early-stage drug development services to
biopharmacuetical clients.
Investment Thesis:
LabCorp continues to be the preferred diagnostics testing
firm in the duopoly it shares with Quest Diagnostics via
continued diversification of LabCorp’s revenues. As
COVID-19 testing demand rises, Pixel by LabCorp
provides at home testing and provides a differentiated
offering in a time largely marked by socially distancing
measures.1
Serology tests are another area for potential growth.
Current run rates for reimbursements set by the Centers
for Medicare & Medicaid Services could drive an
additional $150M in monthly revenues for LabCorp as
demand for serology tests rises.2
Covance has experienced a sizeable increase in market
share in the rapidly growing market of early-stage drug
development. Analysts estimate biopharma R&D will
continue to climb throughout the pandemic and virus
related tailwinds for Covance are expected to be better
than orginally expected by management.2
LabCorp’s diversified revenue streams, differentiated
consumer testing products, and virus related Covance wins
provides a runway for LabCorp to grow significantly post-
pandemic when normal diagnostic demand normalizes.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$383.28 $434.00 $107.35B $6.08 16.83 2.31%
Lockheed Martin Corporation
(LMT)
Description: Lockheed Martin Corporation is a global defense and security company that primarily develops and
researches advanced technology products and services. The company operates in areas of telecommunication, space,
aeronautics, energy, electronics, and systems integration. Lockheed is a leading military contractor who supplies a variety
of models of aircrafts, missiles, and weapons systems to government and commercial customers.
Investment Thesis:
Lockheed is one of the world leaders for aerospace and
defense. The US government totals 71% of Lockheed’s
revenue (61% Department of Defense) – a revenue stream
that is expected to steadily increase QoQ along with EPS.
An increase in dividends also foreshadows successful
profits in the future as Lockheed just recently raised their
dividend payments from $2.40 to $2.60.1
It is well known that Lockheed Martin is the producer of
the F-35 Joint Strike Fighter, a trillion-dollar program that
provides a steady stream of revenue and profits for
Lockheed and its subcontractors. While the F-35 is
important, Lockheed has a vast arsenal of products to
offer including hypersonic missiles that are becoming of
increasing concern to the US government due to the
military progression of China and Russia. These, and many
others, will provide a reliable source for contracts in the
future. As of July, the company had a backlog of orders
totaling $150B.2
In March, Lockheed impressively rebounded from the toll
of COVID-19 and are steadily on the rise once more. The
coming election results will impact government defense
spending, but Lockheed will be minimally effected.
.
At this time, Alexion is scheduled to present on the impact
of COVID-19 on May 6th. Due to the severe nature of the
diseases that Alexion’s products treat, we view current
revenue streams as more resistant to adverse effects related
to the pandemic. We are closely monitoring updates from
Alexion’s clinical trials should they suffer delays as other
clinical trials have from the pandemic.
Return Compared to Related Indices 1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 2 Return
$35.14 $41.00 $2.40B $1.45 24.23 20.62%
Moelis & Co. (MC)
Description: Moelis & Co. operates as an independent investment bank that provides strategic and financial advice to a
client base consisting of corporations, governments, and financial sponsors. The company offers advisory services
through a wide variety of major sectors including consumer, energy, commercial real estate, financial institutions, and
more.
Investment Thesis:
Moelis & Co. is a global independent investment bank that leverages expertise on M&A, restructuring and recapitalization, and public debt/equity offerings. Moelis earned revenues of $159.9M in 2Q20, a 4% increase from the prior year period, despite a 31% decrease in global M&A transactions in the same period.1 Prior to 2Q20, Moelis made several key hires strengthening coverage in oil, gas, and healthcare sectors. Management expects this to be an area of innovation and a source of revenue due to effects from COVID-19.2
Moelis recently advised on capital-raising transactions that added $14B across both equity and debt. Moelis remains well-capitalized, holding $92.9M in cash and equivalents and no debt on their balance sheet. Their strong liquidity position coupled with zero financial leverage gives Moelis breathing room in times of M&A downturns.
Despite the uncertainty surrounding M&A for the
remainder of the year, Moelis expects to capitalize on
previously tabled deals, company restructurings, and
debt offerings as companies look to consolidate and
raise capital given the low interest rate environment.
Return Compared to Related Indices 5 Year 1 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$103.92 $115.00 $139.69B $0.81 36.78 10.07%
Medtronic, PLC (MDT)
Description: Medtronic, PLC is one of the biggest developers of theuropuetic and diagnostic medical products.
Medtronic’s principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation
management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement
disorders. Medtronic’s products are sold globally.
Investment Thesis:
Medtronic PLC is one of the premier developers for
medical products across a wide range of segments.
Medtronic has the ability to leverage both organic and
non-organic growth in order to increase market share.
Medtronic’s robust product pipeline supports
managements goal to continually offer differentiated
products. With over 130 products approved in 2020,
Medtronic has more significant products in the pipeline
that management believes are true disruptors in the
segments they aim to serve.1
Medtronic also recently announced a $337M
collaboration with Blackstone in order to develop 4 key
R&D projects with LSD-MSD royalty upon successful
commercialization, futher providing evidence of
Medtronic’s ability to commercialize pipeline products.2
Medtronic’s financial security has allowed for breathing
room while COVID-19 significantly impacted demand in
key segments. Moreover, a continued increase in
dividends, with management indicating a target payout
ratio of 40%.1
Medtronic’s ability to develop pipline products, grow
organically and non-organically, and capital allocation
strategy make them a prime investment moving forward.
Return Compared to Related Indices
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 2 Return
$29.33 $35.50 $19.09B $(11.83) N.A. 29.13%
Marathon Petroleum Corporation (MPC)
Description: Marathon Petroleum Corporation is a US energy company operating in the refining & marketing, retail
and midstream segments with refineries in the Gulf Coast and Midwest and a retail presence under its Speedway business
segment. With more than 16 refineries, it is the US’s largest refiner and produces more than 3.1M barrels of crude oil a
day.1
Investment Thesis:
In August, Marathon sold off a part of its retail
segment, Speedway, to 7-Eleven in a $21B deal.2 This
move creates $16.5B in cash on the balance sheet and
gives them a longer runway to deal with current
headwinds.2
Marathon is coupling this infusion of cash with
evaluating closure of underperforming refineries and
lowering costs in all aspects. The main catalyst for
Marathon is for a healthy and moving economy.
Limited mass travel due to COVID-19 has significantly
hampered not only Marathon, but the entire oil and gas
industry.
This is a great opportunity to pick up heavily
discounted shares that will quickly bounce back once
the world gets moving again. MPC is one vaccine away
from a surge in demand that will result in higher fuel
prices and thus price appreciation.
MPC has been beaten down over 2020 and we have
positioned ourselves to be rewarded from the increased
demand in oil and gas that we will see within the next
6-8 months.
Return Compared to Related Indices
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$210.33 $254.00 $1.59T $5.81 36.20 27.77%
Microsoft Corp.
(MSFT)
Description: Microsoft Corporation develops, manufactures, liscenses, sells, and supports a collection of platforms and
tools that drive SMBs’ productivity and large businesses’ competitiveness. Its products include operating systems, cross-
device productivity apps, business solution apps, desktop and server management, software development tools, and video
games. The company also develops and sells hardware and accessories.
Investment Thesis:
Microsoft is the second largest player in the fast growing
realm of cloud computing. Though late to the game,
Microsoft has been continuously chipping away at
Amazon’s market share with their best-in-space hybrid-
cloud offering. Microsoft’s ability to offer loyalty prices
and easy integration with its other products (like Office
365) make it difficult for customers to disentangle
themselves from its full stack of intertwined products.
Microsoft’s next-generation consoles will be released in
November 2020. Microsoft’s consoles are favorably
positioned relative to Sony’s because they come at
competitive pricepoints and offer a more compelling game
subscription service (“Xbox Game Pass”). Microsoft has
recently entered the cloud gaming space with Project
xCloud and is, again, well positioned relative to Google
and Amazon due to its pre-existing game library and
offerings. The integration of gaming across the Xbox, PC,
and phone is exclusively available to Microsoft. Microsoft
is uniquely well positioned to take advantage of the trends
towards gaming.
Along with its unparalleled management team, Microsoft’s
continued toolkit of expansion, integration, and leadership
in the gaming space make it a valued holding.
Return Compared to Related Indices 5 Year 1 Year
0% 10% 20% 30% 40% 50% 60% 70%
Office 365 Commercial
Dynamics 365
Server Products and CloudServices
Azure
Xbox Content and Services
Surface
GAAP Percentage Revenue Change Y/Y
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$110.65 $127.00 $28.77B $4.11 26.94 11.86%
Match Group, Inc.
(MTCH)
Description: Match Group Inc. is the leading provider of online dating products. It owns and develops a diverse
portfolio of dating apps to serve every type of person looking for any level of commitment. Its portfolio consists of
Tinder, Match, Meetic, OkCupid, Hinge, Pairds, PlentyOfFish, OurTime, and a variety of smaller apps that target specific
demographics. Its revenue comes primarily from recurring subscriptions and some a la carte features.
Investment Thesis:
As a near-monopoly of US online dating, Match Group is
a strong holding because it has a well positioned, diverse
portfolio of dating apps prepared to serve the increased
online dating demand as the world returns to normal.
Match Group will benefit as secular changes continue to
remove the stigma from online dating.
Dating apps are primarily used by millennials. While
infamous for creating casual relationships, Tinder actually
serves more broadly as the one-stop shop for online dating
for those aged 18-35. Hinge, a recent acquisition, has been
built to better serve 18-35 year olds looking for a longer-
term relationship. Since Match acquired Hinge three years
ago, Hinge users have grown by 10x. This last year, its
average revenue per user (ARPU) grew 60% YoY. Match
Group is well positioned to serve all of the dating
preferences of its primary user base.
Match Group consistently maintains 50%+ market share
of all U.S. online dating. During the heights of quarantine,
when few were going outside and interacting physically,
the number of active users among Match Group’s
portfolio continued to climb. ARPU dropped during
quarantine, but users’ propensity to pay has been quickly
rebounding since early May.
Return Compared to Related Indices 5 Year 1 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$277.55 $292.81 $135.92B $7.24 38.84 19.13%
Next Era Energy Inc. (NEE)
Description: NextEra Energy (NEE) owns and operates two businesses: Florida Power & Light (FPL), Florida's largest
electric company, and NextEra Energy Resources (NEER), one of the world's largest generators of renewable energy.
FPL generates more than 27,000 MW of electricity and delivers it to more than five million residential customers in the
state. NEER generates almost 22,000 MW of energy via wind and solar sources. NEE operates one of the largest nuclear
power plants in the US with eight commercial nuclear power units in Florida, New Hampshire, Iowa, and Wisconsin.1
Investment Thesis: NEE poses a great investment opportunity as it
blends reliable revenue from FPL with an emerging
sector in NEER. FPL is the largest electric utility
company in the state of Florida with 89% of sales
derived from residential customers.2 NEER is
focused on long term contracts for renewable solar
and wind generation.
Many utility companies are unappealing because they
are not dynamic to changing market conditions. As
the energy and utility markets move towards
renewable energy for sustainability and efficiency
standards, NEE is one of the few that benefit from
this transformation. NEE can adequately serve
current and future customers due to their two-
pronged approach and flexible business model.
Another factor in the utility sector is the aging labor
market, utilities are unable to attract top talent.
However, NEE’s management is all under the age of
57, they are not afraid to zig when everyone else
zags.1 This is a great place for capital allocation for
years to come.
Return Compared to Related Indices
1 Year 5 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$68.81 $83.50 $7.49B $1.25 16.37 78.54%
Owens Corning (OC)
Description: Owens Corning produces residential and commercial building materials, glass-fiber reinforcements, and
engineered materials for composite systems. They are a global company that offer their products to various industries.
Owens Corning is organized into three business segments: insulation, roofing, and composites. The company is famous
for its PINK glass fiber insulation.
Investment Thesis:
Owens Corning continues to show steady growth in a
rebounding market as the world’s largest manufacturer of
fiberglass composites.
The company generates profits from three segments, all of
which have strong growth prospects. Nearly 84% of
roofing demand comes from the US residential and repair
market. The fiber composite segment normally trends with
the overall economy. It has taken a hit with COVID-19,
but is returning to growth as construction and
transportation become relatively normal again. Insulation
demand is driven by a mix of US and international
customers. All segments and revenue fluctuate from
period to period due to weather.1
Following the trough of the pandemic, Owens Corning
still delivered solid returns. They continue to provide a
strong operating cash flow of $281M and a total liquidity
increase of approximately $1.5B. Seeing previous spikes in
the winter, Owens Corning will be one to watch in the
coming months.
Owens Corning appears to be on the rise. We are closely
monitoring the impact of climate with residential
consumer spending habits regarding start-up builds and
the repair market.
Return Compared to Related Indices
5 Year 1 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$197.03 $235.26 $231.18B $2.27 86.96 105.80%
PayPal Holdings, Inc. (PYPL)
Description: PayPal Holdings, Inc. operates as a technology platform company that enables digital and mobile payments
on behalf of consumers and merchants. The company’s platform allows users to shop by sending payments, transfer
funds to and from their bank accounts, and hold balances within their PayPal accounts. The company offers online
payment solutions along with PayPal branded credit and debit cards.
Investment Thesis:
PayPal continues to be a dominant player in the digital payments industry. Despite downward projections due to COVID-19, PayPal bolstered record results in 2Q20, adding 21.3M active accounts and 30% total payments volume growth (TPV).1
PayPal continues to capitalize on the contactless payment
trend, rolling out their own QR payment platform. This
trend is being widely adopted as merchants seek
contactless payment options.2 PayPal’s key acquisitions,
Venmo and Xoom, continue to payoff as P2P volume
increased 38% in the quarter, representing 29% of TPV.1
Venmo continues to bring accelerated growth to PayPal,
with Venmo volume increasing 52% in 2Q20, adding $37B
to TPV. PayPal continues to diversify its platform
following its’ separation with eBay, with $74B of TPV
coming from top marketplaces in the last twelve months,
growing 7x faster than eBay marketplace volume.
With forecasted revenue growth in 3Q of approximately
25% and the release of the Venmo credit card later this
year, PayPal remains an excellent investment opportunity
moving forward.
Return Compared to Related Indices
5 Year 1 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$13.84 $26.80 $440.84M $0.31 44.61 (20.98%)
Universal Insurance Holdings,
Inc. (UVE)
Description: Universal Insurance Holdings Inc. operates as a holding company offering property and casualty insurance
and value-added insurance services. It develops, markets, and underwrites insurance products for consumers in the
personal residential homeowners’ lines of business.
Investment Thesis: Universal Insurace Holdings (UVE) provides end-to-end services within the insurance industry. UVE continues to be a prominent insurance provider in Florida, while continuing expansion into other states, helping reduce exposure to weather related losses in their home state. During the first half of 2020, UVE saw direct premiums written growth of 16.5% in non-Florida states, and 13.8% growth within Florida.1 While recently announced expected catastrophe related losses due to Hurricane Sally and Isaias have led to further price depreciation, UVE remains well-capitalized with $331.7M in cash and cash equivalents, and $197M of weather-related reinsurance coverage extending coverage through 2022, allowing the company to hedge against further weather-related losses.2
Additionally, UVE’s proprietary software, Clovered, continues to bolster growth for the company, bringing 40% premium growth YoY and increasing non-risk bearing business over 200% in the same period.1 Moreover, management noted they have not seen a material impact on their business from COVID-19, except for a decrease in fair value of certain investment securities, which substantially recovered in the second quarter.
UVE continues to show promising signs of growth and risk reduction while simultaneously maintaining a robust balance sheet. Continued growth related to Clovered and further entry into new states makes UVE a promising opportunity moving forward.
Return Compared to Related Indices 5 Year 1 Year
Market Price Target Price Market Capitalization EPS (TTM) P/E (TTM) Period 3 Return
$199.97 $228.19 $440.54B $5.73 34.91 24.48%
Visa, Inc. (V)
Description: Visa is a global payments technology company that enables fast, secure, and reliable electronic payments
across more than 200 countries and territories. The company aids financial transactions across the globe, between and
among consumers, merchants, financial institutions, businesses, and government agencies. Visa’s global ATM network is
present in over 200 countries and Visa’s payment cards are accepted at over 53M merchants worldwide.
Investment Thesis:
Visa is a leader in the market for digital payments, which is
expected to carry a CAGR of 23.8% from 2020 to 2025.
Despite decreased total payments volume (TPV) for their
most recent quarter, business drivers improved each month
throughout the quarter, with Visa seeing marked
improvements in payments volume and processed
transactions.1
Despite decreased global transactions volume, Visa saw 75%
YoY growth in Visa Direct, their real-time payments
platform. Additionally, their Value-Added-Services revenue
grew in the mid-teens YoY. Value-Added-Services will play
an increasingly important role in platform services, cyber
issues, and fraud prevention in the acceleration of digital
payments due to COVID-19.1
Visa continues to grow in the e-commerce field, with their
share of investments in digital commerce platforms 3x greater
than physical POS options, as seen on the graphic to the left.
With their recent announcement of an expanded relationship
with PayPal and the acquisitition of Plaid, Visa is positioned
to capitalize on accelerated digital commerce and real-time
payment transactions.2
Return Compared to Related Indices 5 Year 1 Year
Returning Managers
Harry Channing joined the McClain Torch Fund in January of 2020. He iscurrently a Senior majoring in Finance and Mathematics with a collateral inBusiness Analytics and a minor in Computer Science. He is a member of theChancellor’s and Math Honors programs, a Haslam College peer mentor, andthe secretary of the Tennessee Capital Markets Society. As a Melton Scholar,he did research with Dr. Bozdogan in the Business Analytics Department usingdeep learning tools and genetic data to predict whether or not someone isautistic based on their genes. He plans to sit for the CFA Level One Exam inFebruary of 2021. Eager to continue learning post-graduation, he has aparticular interest in pursuing either a Ph.D. in Financial Mathematics or acareer in management consulting or high finance upon May graduation in 2021.
Joshua Davis joined the McClain Torch Fund in January of 2020. He iscurrently a Senior majoring in Finance and minoring in Economicsalong with a collateral in Business Analytics. He is a member of theChancellors Honors Program along with continued involvement inthe University of Tennessee Investment Group and the FinancialManagement Association. Currently, he volunteers at The GoodNeighbor Shoppe in Lenoir City, Tennessee, an organization thataccepts donations to which the proceeds go towards charity efforts fordisadvantaged people in the Appalachian region. He has recentlyaccepted a return offer from PNC Bank in which he will be workingas a Capital and Liquidity Analyst with their Asset and Liabilitymanagement group in Pittsburgh, Pennsylvania upon graduation inMay of 2021.
Austin Taylor joined the McClain Torch Fund in January 2020. He is aSenior majoring in Finance with a concentration in Supply ChainManagement. For the past 8 months, he has worked full-time inOperations and Finance at The Yards in Ponte Vedra Beach, Florida. Inthis role, he supports current entities and sources new investments.Austin also has experience as a Commodity Trading Intern (NexidusCommodities) and as a Finance/Accounting Intern (HolmanAutomotive). Experience from these roles has driven Austin to becomeextremely passionate about venture capital and working withentrepreneurs. Austin will be heading a new project launch in thecoming months where he will get the opportunity to lead a multi-million-dollar entity. Austin will be graduating in December 2020.
New ManagersRiley Alexander joined the McClain Torch Fund in August of 2020. He is fromGreeneville, Tennessee and is currently a Senior majoring in Finance with a collateralin Marketing. He has been a member of the Dean’s List each of his semesters at UTK.Riley has worked as an Accounting Intern at Phillips and Jordan, Inc. and as a teller atAndrew Johnson Bank. This past summer, his internship was cancelled due to COVID-19, and he served as a math tutor at a local Boys and Girls Club while also focusing onhis studies. After graduation in May 2021, Riley aspires to enter a career in PrivateWealth Management.
Jake Coffey joined the McClain Torch Fund in August 2020. He is a native ofKnoxville and is currently a Senior majoring in Finance with a collateral inEconomics. This past summer, he completed an internship with SmartBank inKnoxville and remains with the company as a Junior Financial Analyst for the schoolyear. Jake has a passion for learning and plans to sit for the CFA Level One exam nextMay. He has been a member of the Dean’s List each semester during his tenure atTennessee. After graduating in May 2021, Jake will pursue a master’s degree inFinance at Vanderbilt University. Following the program, Jake plans to pursue acareer in investment management, hoping to ultimately start his own portfoliomanagement firm.
Ashley Fleiner joined the McClain Torch Fund in August 2020. She is a Seniormajoring in Finance with a concentration in International Business. In Summer 2019,she interned at Vanderbilt Mortgage and Finance in the Default Servicingdepartment. She studied abroad in Rome, Italy in the Spring of 2020 and came hometo begin her summer internship with Mars Petcare as a Finance & Accounting Intern.She is a member of Pi Beta Phi and currently serves as the Vice President of Financeand Administration for VOLthon, the largest student run Non-Profit Organizationon campus. Following graduation in May of 2021, Ashley hopes to pursue a career incorporate finance, investment banking or private equity.
Kevin McCarter joined the McClain Fund in August of 2020. He is currently aSenior pursuing a double major in Accounting & Finance with a collateral inInformation Management. In the Spring of 2019, Kevin interned at Novinger, Ball,& Zivi CPA’s as a Tax Intern. He is currently employed at First Horizon Bank as abank teller. Kevin is the founder of HoneyBrook Financial, a small consulting andbookkeeping firm with plans to expand into investment advisory services for hissmall business clients. Kevin is expected to graduate in the summer of 2020 havingcompleted two degrees in three years. He is currently studying for his CFA LevelOne exam with plans to pursue his CFP designation post-graduation. Kevin hopes topursue a career in financial planning or asset management.
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EA
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Graphics: “Barclays Global Consumer Staples Conference.” Investor.Kimberly-Clark, 9 Sept.
2020, investor.kimberly-clark.com/static-files/fcc888f6-55b5-4e28-b959-b24f9e6233d1. LH 1. “SEC Filing: Laboratory Corporation Holdings of America 2Q 2020.” SEC Filing | Laboratory
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2. Whiteman, Lou. “Is Lockheed Martin Stock a Buy?” The Motley Fool, The Motley Fool, 26 Sept.
2020, www.fool.com/investing/2020/09/26/is-lockheed-martin-stock-a-buy/. Graphics: “Hypersonics.” Lockheed Martin, www.lockheedmartin.com/en-us/capabilities/hypersonics.html.
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