Week 6

QUANTITATIVE & RISK

TOTAL RETURNS OF BAF SECTORS

BEST PERFORMING STOCK: RPM

WORST PERFORMING STOCK: AMPE

BETA OF PORTFOLIO

BAF V/S S&P500: SECTOR WEIGHTAGE

Consu

mer

Energy

Healthc

are

Indus

trials I.T

.

Materia

ls

Teleco

mUtilit

ies0

5

10

15

20

25

30

35

BAF WeightsS&P500 Weights

BAF V/S S&P500: MONTHLY RETURNS

Consu

mer

Energy

Healthc

are

Indus

trials I.T

.

Materia

ls

Teleco

mUtilit

ies

-8

-6

-4

-2

0

2

4

6

8

BAF Returns MTDS&P Returns MTD

S&P 500: Basic Materials poor performance due to 3 stocks:BAK, PKX and PBR

BAF: Healthcare poor performance due to stock: AMPE

MACRO UPDATES: HEALTHCARE AND CONSUMER PRODUCTS

• GSK plans to increase investment in emerging markets:

India: Increase its stake in Healtchare from 43.2 % to 75 %

Nigerian: Increase its stake in consumer products unit from 46.4% to 80%.

The transactions will cost the drug manufacturer more than $1 billion.

• Ampio Pharmaceuticals, Inc. (AMPE) announces appointment of Josh Disbrow as Chief Operating Officer effective December 15, 2012

• PepsiCo (NYSE:PEP): Raised its quarterly dividend 4 percent to 53.75 cents per share, payable January 2.

INDUSTRIAL & BASIC MATERIALS SECTORS

November 19th 2012

• Honeywell Prepared for 80% drop in defense spending in Jan. 2nd due to budget sequestration

• Cuts in defense spending would begin to affect the company drastically by 2014.

November 20th 2012

• US GDP accelerates to 2.9% in Q3

• This will likely increase the shares of U.S. producers of basic materials.

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Cloud Computing IN!

Data Centers OUT =