Friday, September 30, 2016

Another Set of AIM Students in the Class of 2017 Delivered Equity Presentations on Friday, September 30, 2016

On Friday, Three Students in the AIM Class of 2017 Pitched the Fifth Set of Stocks During the Fall Semester

Henry Lu, Sarah Hillegss nd Kristiyan Trukov
Over 50 students in the AIM Room attended the fifth set of equity pitches delivered by the Class of 2017 in the AIM Room on Friday. 
The three AIM student presentations also were viewed on-line via a webcast by more than 10 alumni and family members across North America.
The AIM student equity pitches take place each Friday afternoon during the semester – either in the AIM Room or at a local investment company. You can also watch the live presentations by the students in the AIM Class of 2017 via webcast.

The students prepare and distribute a professional equity write-up (note: every AIM write-up since the inception of the program in 2005 is archived here). 

This week’s equity write-ups can be found at:  AIM EquityWrite-Up 9/30

Full room during the pitches
The students are responsible for making a five-minute pitch before their peers, faculty and any alumni or investment professional in attendance.

Following the student’s pitch the floor is opened for questions and answers for about ten minutes. This has been highly instructive as the students must be prepared to defend their investment recommendation and answer questions in an extemporaneous manner.

You can join the AIM Program Student Equity Presentations in person, online or via Twitter on Friday, September 30th at 3:15 pm CST

The AIM student equity pitches take place each Friday afternoon during the semester – either in the AIM Room or at a local investment company. Watch the live presentations by the students in the AIM Class of 2017 (see webcast link below).

The students prepare and distribute a professional equity write-up (note: every AIM write-up since the inception of the program in 2005 is archived here). 

This week’s equity write-ups can be found at:

The students are responsible for making a five-minute pitch before their peers, faculty and any alumni or investment professional in attendance.

Following the student’s pitch the floor is opened for questions and answers for about ten minutes. This has been highly instructive as the students must be prepared to defend their investment recommendation and answer questions in an extemporaneous manner.

How to comment using Twitter:
  • Go to the MarquetteAIM Twitter account (you can use Search Twitter on your site) and click Follow
  • During AIM presentations, go to #AIMpitch and follow the tweets (discussion) on Twitter (it will also be appearing on the Rise Display Board in the AIM Room and on your smartphone)
  • Tweet your comments and questions during the AIM equity pitches
    • Follow the rules of etiquette for using Twitter during AIM pitches
    • Use the hashtag #AIMpitch to start each tweet
    • Use $TICKER (note: this is called a cashtag and it be should the unique ticker/symbol for the stock that is being presented, ex: $TSLA)
    • Keep you comment short because each tweet is limited to a maximum of 140 characters
    • Example for Tweeting on a student’s Tesla equity pitch (note: the ticker for Tesla is TSLA):
      •  #AIMpitch $TSLA How do lower gas prices impact demand for electric cars?

Thursday, September 29, 2016

Chuck Severson and Corbin Weyer of Baird Mid-Cap Growth Visited the Students in the AIM Program This Week

The AIM Class of 2017 Learned About Baird Equity Asset Management's Mid Cap Growth Philosophy and Strategy

Corbin Weyer, Bill Walker, Chuck Severson, and Dr. David Krause
On Wednesday, September 28th, Chuck Severson (CFA), Senior Portfolio Manager and Corbin Weyer (CFA, CPA), Research Analyst, of Baird Equity Asset Management's Mid Cap Growth team visited the AIM program.

Mr. Chuck Severson has over 29 years of investment experience. He is currently a Senior Portfolio Manager and Managing Director on Baird Equity Asset Management's Mid Cap Growth product and covers industrials and software. He earned a Master of Science degree in finance in 1987 and BBA degree in 1982 from the University of Wisconsin-Madison, where he was a member of the Applied Security Analysis Program. He earned the Chartered Financial Analyst designation in 1991.
Chuck Severson of Barid's Mid-Cap Growth Equity Team

Corbin Weyer
Corbin Weyer joined Baird in 2010 and has 6 years of investment experience. He joined Baird Equity Asset Management in August as a Research Analyst with consumer emphasis. Prior to joining Baird Equity Asset Management, he spent four years with Baird in the equity research department covering the consumer sector. Mr. Weyer received a BSBA in Accounting and Finance from Marquette University – and was a member of the Applied Investment Management program.

Dr. Krause stated, “We enjoyed hosting Chuck and Cobin in the AIM classroom. They talked about their philosophy, strategy and process – which has been successful throughout the years. The students did a nice job asking questions and came away with an appreciation of the importance of a disciplined approach to equity investment management.”

Baird Equity Asset Management's Mid Cap Growth team invests in companies that possess the following characteristics:
  • Consistent, profitable earnings growth
  • Leadership position in an attractive market
  • Sustainable, competitive advantage
  • Barriers to entry into their business
  • Well-articulated mission and value-added focus
  • Financial strength

Krause said, “As Chuck and Corbin indicated, their philosophy is applied with a focus on the long term and emphasis on risk control. They find high quality mid-cap growth stocks and the team is consistent in their approach. Mr. Severson has assembled a strong, dedicated team that has specialized knowledge in the mid-cap space. Their style is pure and consistent - and they have created a repeatable process. Similar to Henderson Geneva, who visited the AIM program a couple of weeks ago, this is a true traditional mid-cap growth strategy with a strong emphasis on quality with a long-term perspective.”

A current AIM equity holding: Vina Concha Y Toro S.A. ADR (VCO): by Dominic Delia "Ready for More?"

Vina Concha Y Toro S.A. ADR (VCO, $34.40): “Green Prospects for This Red Wine”
By: Dominic Delia, AIM Student at Marquette University
Image result for vina concha y toro
Disclosure: The AIM Equity Fund currently holds this position. This article was written by myself, and it expresses my own opinions. I am not receiving compensation for it and I have no business relationship with any company whose stock is mentioned in this article.


Vina Concha Y Toro S.A. ADR (NYSE:VCO) is a vertically integrated, international producer and exporter of wines headquartered in Santiago, Chile. The company offers a diverse array of brands including Casillero del Diablo, Don Melchor, and the Fetzer portfolio of brands.
• VCO’s most recent earnings report revealed notably improved fundamentals and unprecedented margin expansion, despite missing consensus expectations on both revenues (2%) and EPS (3%).
• Recent industry tailwinds are expected to subside in 2H16, after gross margins surprised on the upside in Q216 due to lower grape input prices and foreign exchange benefits of a weaker CLP.
• VCO’s recent achievement as the only wine company included within the Dow Jones Sustainability Index 2016 personifies the AIM Program’s recent emphasis on ESG investing.
• With extremely low trading volume catalyzing the majority of price fluctuation, VCO’s inevitable inclusion on a major index should help to quell volatility.

Key points: Concha y Toro’s performance has remained relatively flat since it was added to the AIM International Portfolio this past May. Its low trading volume has subjected the stock to technically catalyzed movements in price and overshadowed the firm’s markedly improved fundamentals. Despite these unforeseen headwinds, two of the original drivers (Shifting Demographic Trends & Overlooked Chilean Economy) have yet to play out, as these macroeconomic factors tend to have much longer time horizons.

When Q2 earnings were announced in late August, margins expanded (Gross Margin +170 bps along with EBITDA margin +170 bps YoY) through both decreased input costs and massive increases in volume across all facets of the business, most notably in Canada, Mexico, and Asia. The recent acquisition of the Fetzer portfolio of brands is also proving to be synergistic, with YoY sales volumes increasing by 12.1% and showing signs of sustainable momentum.

Looking forward to 2H16, VCO will need to rely on sustained volume growth domestically, as the Chilean economy pulls itself out of recession and begins to expand, as well as in the Asian and North American markets, after the tailwinds from a weak Chilean Peso and depressed grape prices were realized in the first and second quarters of 2016.

What has the stock done lately?

Over the past quarter, Concha y Toro has seen an 8.40% increase in price ($31.74 to $34.36) from its late June trough, as consumer staples had continued their rally into mid-August. Despite a recent sector slowdown, the announcement of 2Q16 financial results further buoyed the stock price, as YoY volume growth coupled with margin expansions provided a pleasant upside surprise to investors.
The company recently announced a new bond offering to pay down debt and increase capital expenditures, demonstrating a focus on cleaning up the balance sheet while preparing its facilities and vineyards for continued volume growth over the next three years. 

Past Year Performance: Over the past twelve months, Concha y Toro has grown a meager 1.95%, while overcoming a 20% drawdown in 4Q15. During this time, the Chilean economy was reeling as fears of a sustained Chinese growth slowdown had driven copper (Chile’s main export) to historically low prices. Chile has weathered the storm by slowly transitioning to a more service based economy, and the company has reaped the benefits of the country’s weakened currency in the meantime. 

Source: FactSet

My Takeaway

Despite the stagnation of global growth over the past year, Vina Concha y Toro has been able to grow its brand presence globally as evidenced by the YoY volume growth in newer markets such as Asia and Australia. Management adeptly positioned the company to take full advantage of both commodity and currency tailwinds in 1H16, while cementing the firm as a model for reputation and sustainability within the industry.  I recommend the fund continue to hold Concha y Toro while patiently collecting the dividend and waiting for my initial investment thesis to play out. 

Wednesday, September 28, 2016

Unequaled by Jim Runde. Amazon's #1 Hot New Release in Investment Analysis & Strategy

Unequaled: Tips for Building a Successful Career through Emotional Intelligence – September 19, 2016

by James A. Runde  (Author), Diana Giddon (Contributor)

The early reviews are outstanding.... Read about the real secret to career success and what it takes to get ahead is EQ!

UNEQUALED is the client service professional's guide to getting ahead and achieving professional goals. You're smart and hard working, but guess what—so is everyone else. So how do you stand out? You need to distinguish yourself in order to get ahead, but simply being good at your job is not enough. Moving up is about soft skills, networking, client connections, emotional intelligence, and your personal reputation. 
This book is a frank and candid guide to what it really takes to succeed in the field, packed with insights, stories, and actionable tips based on the author's 40 years at Morgan Stanley. You'll learn how to lead, when to follow, and how to build the reputation you need to get ahead in a competitive field.
Mr. Jim Runde
This book shows you how to step up your relationships, strengthen your soft skills, and build your brand for success.
·         Differentiate yourself and expand your career

·         Build relationships through planning and preparation and deliver commercial results

·         Lead effectively, increase productivity, and build a better work environment

·         Build, enhance, and leverage your personal brand to support your own success

·         Network effectively to find mentors and sponsors

Realizing your career goals means being visible, having influence, and crafting a reputation as a valuable contributor while delivering outstanding results. UNEQUALED shows you how to adapt yourself, collaborate with colleagues, influence clients, and become an excellent boss.

Amazon's #1 Hot New Releases in Investment Analysis & Strategy. 

Jim Runde, Morgan Stanley

The early reviews are outstanding:

5.0 out of 5 stars A Must Read on Keys for Career Success
By Amazon Customer on September 21, 2016

Jim Runde has written a wonderful book for all stages of one's career. I found it to be accessible in a way that I related to directly in reflecting on my career choices, successes, mistakes and relationships. We know that hard work, preparedness and perseverance are fundamental tenets of a solid career, but Runde provides a far more nuanced roadmap for success beyond that foundation. Soft skills and emotional intelligence are crucial, and he demonstrates that attitude, attention to detail, mentoring relationships and consistency are keys to profound professional achievement and satisfaction. Mr. Runde's experience comes from many decades of working in a large corporate organization, but the skills, values and wisdom he imparts are widely applicable to any organization, regardless of size or sector. This thought-provoking book is a must-have addition to the library of anyone reflecting on their career and interested in continuous improvement.

5.0 out of 5 stars must add to your career development books byt Byromi_bandura@yahoo.comon September 21, 2016
Format: Kindle Edition|Verified Purchase

James Runde’s book offers very practical advice in order to succeed in your career, not just your job. Mr. Runde provides specific tips on how to ask for help, get valuable feedback, develop and use an elevator pitch. He clearly explains why brains and hard work only get you in the door but other people skills that get you ahead. There are very interesting examples throughout his career of workplace challenges and successful ways to overcome them. He delivers invaluable lessons for all career levels and it is a very enjoyable read. This is a book that needed to be written and that you need to read: a master class in all facets of workplace navigation!

5.0 out of 5 stars Practical and actionable - a rare and worthy read for developing as a professional  By Boston Student on September 26, 2016

A truly impactful read. Mr. Runde's career advice is timeless and applicable to all generations of folks in the corporate world - whether you're starting off as a young investment banker fresh out of college or you're further along and are looking to take charge of your career once more.

What's more, his tips are actually practical. There are far too many books on career advice where you walk away wondering how to apply any or all of the advice to the numerous intangible success factors in your career. This book is not one of them. On every topic - from receiving feedback to pitching yourself to building a network of peers, mentors, and sponsors - Unequaled provides actionable steps to make a positive difference in how you navigate your career.

I wish this book had been published many years ago when I entered the workforce as a summer intern and joined an investment bank as a full time analyst. I could have greatly benefited from its wisdom in the early days but am glad to be able to benefit from Mr. Runde's advice today. I highly recommend Unequaled if you seek a career development book that has unsurpassed return on investment.

5.0 out of 5 stars Invaluable Career Advice and Guidance
By chipdankon September 23, 2016

Mr. Runde is the consummate business professional. His insight into techniques for building and maintaining your career are second to none. He is able to provide practical, real-world advice no matter what career stage you are in. He provides concrete and specific tips to help you move your career forward. His experience and guidance on mentoring and sponsor relationships is invaluable.

5.0 out of 5 stars It is delightful that a true Wall Street veteran (as ...
By bookmonsteron September 26, 2016

It is delightful that a true Wall Street veteran (as well as a military veteran) has such practical, up-to-date tips on how to climb to the top, and stay there. Although Mr. Runde's stories come from his background in investment banking, his lessons apply to all professions - legal, accounting, banking, consulting, etc.
I've read a lot of books and have come to consider a book worthwhile if it gives one new piece of information that I can integrate into my life. Mr. Runde's book soars above those expectations -- over and over!

5.0 out of 5 stars Industry Must-Read for New Entrants and Veterans Alike
By London Fanon September 25, 2016

Few books can transcend generations and offer valuable, practical insights for navigating ones career, at any stage. Runde's book is just that - a call to action for young bankers, identifying the obvious - and yet often overlooked - keys to success. Attention to detail, building a network, identifying mentors and sponsors, and knowing your client's objective are just a few of the many words of wisdom throughout - in addition to many memorable quotes to live by. Mr. Runde's book deserves a spot in the employee development curriculum for every major financial firm.

5.0 out of 5 stars Real Lessons to Create a Real Career
By Amazon reader on September 25, 2016

What are the intangibles that create a successful career? This book, written by a legendary seasoned professional takes in hand this question and with a step by step common sense approach creates a road map for anyone trying to establish a real career. Follow up, resiliency, awareness, accountability are some of the attributes discussed by Runde in an approachable non intimidating way. This is a must read for professionals of all stages of career. Its s smooth easy read and a perfect gift for graduates entering the workplace.

5.0 out of 5 stars Easy to read and immediately useful.
By Texas lawyer on September 21, 2016

Terrific practical tips for use in starting a career or embellishing the one you are in. Highly recommend to all careers. Mr. Runde shares specific examples of successes and failures in the business world with wisdom and easy to read follow up. In contrast to other guides this book goes straight to specific suggestions and reasons based on real world anecdotes.

5.0 out of 5 stars For all young professionals, this book is an absolute...
By Business School Student on September 27, 2016

For all young professionals, this book is an absolute must read! Few Bankers on Wall Street have transcended the longevity and success of Jim Runde’s career and he brings his 40+ years of experience and passion into this book. Particularly for business school students looking to take their development as an authentic leader to the next step, Jim offers raw and practical advice on the practice of emotional intelligence. Jim Runde’s book is a must buy for anyone looking to propel their career!

5.0 out of 5 stars Should be taught in all business and law schools
By Eduardo Cavalloon September 23, 2016

This is an extraordinary piece of work. A contemporary classic. Essential and insightful read. A must read for anyone trying to understand how to advance in their careers and be happy and satisfied in the process of doing so. Being smart and hardworking is enough to be a successful professional in financial services and also elsewhere in today’s labor market; this book shows the limits of individual IQ versus soft skills of adaptability, collaboration and empathy. For those who want to seek career advice, this book is a useful guide. Destined to be a gem in the literature of career development. A road map for the three basic dimensions of career progress: helping as a staff member; working with clients and customers; and building and leading teams. This book is conceivably the best investment I have made in my career since Graduate School at Harvard. It is THAT good!

Morgan Stanley's James Runde, a prominent Marquette alumnus, was published this week in the Harvard Business Review

Image result for james runde morgan stanley
James Runde of Morgan Stanley
Prominent Marquette alumnus

Early in your career — whether it’s in banking, law, consulting or accounting — you will discover that all of your colleagues are as smart and hard working as you. You’ll learn that the key to being successful must be something else. Over my 40-year banking career, I’ve learned that the critical distinguishing factor for advancing in the professional services is emotional intelligence (EQ). Without EQ, it’s likely that you will be your firm’s “best-kept secret” — not recognized, not appreciated, not promoted and, often, not properly compensated. Developing EQ is just as pertinent for the recent graduate who is starting out, as it is for the seasoned veteran.

Harvard Business ReviewEmotional intelligence is the ability to monitor your own and other people’s emotions, to distinguish between different emotions and label them appropriately, and to use this information to guide your thinking and behavior. According to a 2013 study by American Express, EQ is one of the biggest predictors of performance in the workplace and a strong driver of leadership and personal excellence. As Daniel Goleman wrote in HBR in 1998, “Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won’t make a great leader.”

Emotional intelligence matters even more today. A complex and global business environment requires stronger communication across multiple boundaries, and the rise of big data means clients put more value on customized insight and integrity.

But in order to strengthen your emotional intelligence, you have to know what it is. EQ is more than charisma or personality. It is exhibited in adaptability, collegiality, and empathy — and it is practiced through listening, remaining calm and resilient in the face of problems, valuing and helping colleagues, and connecting and empathizing with clients. I’ve found that, in the workplace, it is about your relationships:
  • Your relationship with yourself (self-awareness/adaptability)
  • Your relationships with your colleagues (collegiality/collaboration)
  • Your relationships with your clients (empathy)
Self-awareness is your ability to understand your strengths and weaknesses and to recognize your emotions and how they affect your thoughts and behavior. Self-awareness is a critical component of EQ because it is what helps you to adapt to the array of different bosses, colleagues, clients, working styles, and personalities that you will encounter throughout your career.

As you move up the corporate ladder, you will also need to adapt to different roles and responsibilities. What made you a great processor will not make you a great producer. So in order to be successful you will need to be self-aware, flexible, and open to new ideas, projects, and people. This will help you grow your expertise and connections, and you’ll be more prepared for future responsibilities, such as bringing in new business.

The best thing you can do early in your career is decide to prioritize your adaptability. Ask your boss and your network for feedback about your self-knowledge and your ability to be flexible in dealing with change. Read influential books that can help you hone your self-awareness, such as How to Win Friends and Influence People by Dale Carnegie and The Wisdom of Crowds by James Surowiecki.

Collaboration is essential in professional services firms because most work is done in teams. The industry is even becoming more collaborative, as teams become global and diverse and the workplace becomes more virtual. There are now larger teams — comprised of people across functions and industries — trying to solve increasingly complex client problems.

In order to succeed in a professional services firm today, you need to work well with your colleagues so that the entire team succeeds. Performance reviews emphasize firm and team contribution rather than individual performance. I have seen many examples of people being penalized for acting as a lone wolf instead of a good team player when covering clients or trying to provide client solutions. Team members have to respect each other’s abilities and perspectives.

You can improve your teamwork skills by helping team mates (even on projects that you’re not formally assigned to), carefully managing conflicts or disagreements, building your network, and not keeping score. The best litmus test of your ability to work with others is whether others are eager to work with you.

Empathy is understanding what others are feeling, either because you have experienced it yourself or have actively tried to put yourself in their shoes. Empathy allows you to build trust with your clients—and this is the most challenging and underappreciated part of any job in the professional services industry.

People starting out their careers tend to think that finding answers is the most important part of the job. But while we are in the solutions business, finding the right solution is often not what holds us back. Experience has taught me that if a client tells me the problem, we will always come up with a thoughtful response. The real challenge is getting the client to tell you the problem.

If I was not asked to compete for an assignment by an existing client, it was usually not because the client did not know me or because I was not capable. I missed the business because the client never gave me a shot at solving their problem. Either the client did not think of calling me or did not trust me enough to share what was on their mind. The key to winning business is getting the client to trust or like you enough that they will tell you what issues are worrying them.

Building a relationship of trust can take years, but it pays dividends. For years, I worked with one client on a mergers and acquisition concept that never materialized. But over that time I gained the client’s confidence because I listened and was reliable. That client, United Parcel Service, ultimately awarded our firm with the lead-underwriting role in the largest initial public offering in history at that time.

So how do you build client trust like this? You have to focus on listening. And I have observed two types of listeners: those who listen to respond and those who listen to listen. Let’s call the former the Encyclopedia and the latter the Empathizer. The Encyclopedia listens waiting to interrupt and tries to upstage the client with knowledge; he leaves the meeting proud of the wisdom or advice he imparted.  The Empathizer listens to understand issues, asks questions to “peel the onion,” and make the client comfortable and willing to share real concerns. The Empathizer leaves the meeting with the client asking for help on a specific assignment.

Using EQ to Advance Your Career
The process of excelling early in your career involves realizing that while brains and hard work got you in the door, you now have to focus on learning from others and being the best at adapting, collaborating, and listening.

Let’s look at networking — a key skill that requires all three components of emotional intelligence: self-awareness, collaboration, and empathy. Self awareness helps you recognize networking candidates and opportunities and adjust your approach as needed. Reciprocity leads you to give more than you take, as you have to be patient when it comes to the benefits of networking. And being able to cultivate trust and integrity with your network helps you form deep connections with a broad group of people who care about your success and well being.

While networking can be beneficial at any point in one’s career, it can especially help young professionals find sponsors who can change their career trajectories. Networking is key to identifying new opportunities and advancing your career. It is like holding multiple lottery tickets — it can help transform you from being relatively unknown in your firm to being a well-known contributor with a diversified career portfolio, multiple advocates, and a range of opportunities.

Most of the best tips I received throughout my career came from acquaintances in my network rather than from people with whom I was close. So don’t wait until you need something to build your network. Take a long-term view. You want to cultivate networking relationships over time, so that they will be there when you need them.

Networking is just one example. EQ as a core skill matters now more than ever, because work has changed in ways that favor emotional competence and soft skills If you can develop these traits — self-awareness and adaptability, collaboration, and empathy — early on, you’ll be able to set yourself apart from your peers and build a life and career that is successful and satisfying.

James Runde is the author of the book UNEQUALED: Tips for Building aSuccessful Career Through Emotional Intelligence (Wiley). He is the longest-serving investment banker at a single U.S. firm, having spent over 40 years at Morgan Stanley, where he was appointed vice chairman.

View his Wikipedia page at: