Carnegie Mellon University

Tepper School of Undergraduate Business

Undergraduate Finance Club Annual Report 2007-2008

President: Vice President: Treasurer: Marketing: Secretary: Activities Director: Chief Technology Officers: Senior Advisor:

Jyoti Joshi Victor Tam Lisa Hsieh Ann Thomas Kristin Carew Neil Sethi Nitin Seemakurty John Bennett Sudeep Paul

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Table of Contents
Our Mission Professor Dinners Wall Street Intern Panel Wall Street Crash Session Fidelity Investment Presentations Corporate Finance Case Competition Guest Speaker: Chester Spatt PNC Bank Trading Floor Tour Freshmen/Sophomore Case Competition UFA Social Guest Speaker: Ziv Ragowsky Equitrader Presentation & Competition April/July Events Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16

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Mission
Our mission is to prepare Carnegie Mellon Students interested in finance with the tools and education needed for a successful career. To this end, the Undergraduate Finance Association helps develop students' interest in finance, and augment the current Finance Track education with extracurricular workshops and events. In an effort to promote the interests of our members to finance professionals and recruiters, we also sponsor programs to increase the presence of Carnegie Mellon's Undergraduate Finance and Business programs in the financial community. To provide valuable insight to students, we have developed and maintained a network of alumni and friends in corporate finance and the financial industry. UFA was rebuilt in Fall 2002, and we have been growing ever since. We are the largest business organization on campus, with over 500 members on our distribution list. From this, we have a core group of 80-100 students who participate in many of our events. For more information and details about our club, please visit www.cmufinanceclub.com.

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Professor Dinners 9.26.07
Professor dinners are an excellent opportunity to get to know faculty members who teach large classes and don’t always have the chance to talk to students one-on-one during lecture. During these dinner events, a professor from the business or economics departments will dine out with a group of 8-10 members of the Undergraduate Finance Association. Attendees are selected on a first-come, first-serve basis through an RSVP system on the UFA website. Our most recent dinner was with Professor Cofield of the undergraduate business department, during the 2007 fall semester. This dinner in particular was an excellent opportunity for some of our freshman members, as all business administration students take Dr. Cofield’s Intro to Business course during the fall. Other past participants in the dinners include math finance professor Muzaffer Akat and business communications professor, Patrick McGinnis.

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Wall Street Intern Panel 10.24.07
A question and answer session with students who have had internships with firms on Wall Street the previous summer. Each student on the panel shares his or her experiences over the summer, such as daily routines and responsibilities, the different departments, and any interesting stories. The setting is relaxed and candid, which allows students to ask any question they desire. The event had 57 participants.

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Wall Street Crash Session 10.24.07
This presentation, given by executive board members and former Lehman Brothers interns Jyoti Joshi and Sudeep Paul, provided a crash course in investment banking for undergraduates interested in finance, specifically jobs on Wall Street. All of the major aspects of an investment bank were covered, including capital markets, investment banking, investment management, and other departments. For those considering working in the field, the pros and cons of Wall Street careers and internships were discussed, as well as the working environment and corporate culture of investment banks. Finance terminology and major players in the industry were reviewed for newcomers to the subject. In addition, the presenters reviewed the typical qualifications sought by investment banks, the hiring process, and the hierarchy of an investment bank. The session concluded with an open question-and-answer forum. Many of the attendees asked questions concerning summer internships, ranging from topics such as interviewing and salary to living expenses and housing. The event attracted 47 students.

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Fidelity Investments Presentations 10.30.07 & 11.5.07
UFA invited Fidelity Investments to speak at CMU on two separate occasions. The first of the two was an introduction into technique analysis, a technique used by professional traders, which involves examining candle stick and bar chart formations. Students learned how to evaluate these charts and how traders use these charts to enter and exit trading positions. In addition, students learned basic chart formations such as head and shoulders, reversals, and engulfing formations, which can help students with their own investment portfolios. 56 students attended the event. The second event was a presentation given by wealth managers of Fidelity. They provided insight into their job and talked about the variety of securities available in the market, including bonds, equities, and treasury bills. He also taught students the importance of saving and investing their money, since interest from the banks barely beats inflation. At the end of his presentation, he mentioned some free resources through Fidelity and the internet that can help students get started with investing. There were approximately 50 students who attended the event.

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Corporate Finance Case Competition 11.10.07
This year, our annual corporate finance case competition was sponsored by Wachovia Securities. Students from all majors were welcomed to participate, as long as they had completed Finance. The case used this year involved the Calpine Corporation, a power production company, and its plans to implement a new growth model. The case gave the participants three possible scenarios that the Calpine Corporation considered in 1999. The judges were Peter Seok, a Wachovia analyst, and Shimon Kogan, a professor of finance at CMU. Wachovia also awarded a $200 prize to the winning team. The case competition had 4 teams with 5 participants per team.

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Guest Speaker: Chester Spatt 11.14.07
Chester Spatt served as the Chief Economist and Director of the Office of Economic Analysis at the Securities and Exchange Commission for three years. The presentation given by Dr. Spatt focused on his work and experiences at the SEC, the current liquidity crisis in the financial markets, as well has his role as Chief Economist at the SEC. At the SEC, Dr. Spatt led the staff's economic analysis of key issues including implementation of options expensing through models and markets, mutual fund market timing and late trading, option grant and exercise backdating, and executive compensation. 27 students attended the event.

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PNC Bank Trading Floor Tour 2.19.08
In an effort to reach out to the businesses around Pittsburgh, UFA co-hosted a corporate tour of PNC Bank in downtown Pittsburgh with the professional business fraternity, Alpha Kappa Psi. There were approximately 15 members that attended the event from both organizations. The corporate tour was divided into two different sessions. In the first part of the tour, representatives from the capital markets division gave an overview of what their jobs entailed. In addition, there was a short question and answer session between the attendees and representatives. The second part of the tour was a visit to PNC’s trading floor. There, students were exposed to the various areas of capital markets, such as currency trading and derivatives. Students were also given the chance to speak to and question the traders on the floor, which led to developed insight into capital markets and the corporate environment of PNC. At the conclusion of the tour, students were given some gifts and information regarding possible internships available at PNC Bank.

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Freshmen/Sophomore Case Competition 2.24.08
This year’s annual freshmen/sophomore case competition, sponsored by PNC Bank, successfully drew 25 participants from all majors. This year, the teams were tasked with consulting for Bally Total Fitness at the turn of the century. The case detailed the problems Bally faced as competition in the fitness industry increased. This was invaluable experience for underclassman to get their first taste in a case competition. Meanwhile, the case was designed to be very open-ended, allowing for creativity and exploration. Teams were asked to present their recommendations and PNC sent three representatives to judge the event and award our winners with prizes. The competition had 5 teams with 5 participants each.

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UFA Social 2.27.08
This event was focused on allowing UFA members to get to know one another. It also allowed new members to meet some of the upperclassmen. Younger students were able to obtain advice from students who have gone through similar situations; students were talking about what classes to take, what track options were available, and just general college life. It was a very informal gathering, which allowed the students to feel more comfortable and talk easily with one another, as opposed to the lecture type events that UFA typically holds. We had about 20 students attend, and pizza/soda was provided.

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Guest Speaker Ziv Ragowsky 2.29.08
In a joint event between Undergraduate Consulting Club, Ziv Ragowsky, a consultant who works for McKinsey, spoke about his consulting experiences and the private equity industry. He went over the basic structure of a private equity firm, and the latest trends in that industry. He also talked about the differences between the responsibilities of an investment banker versus a consultant, specifically the different types of models each role uses to analyze problems. The event attracted 32 students.

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Equitrader Trading Presentation & Competition 3.27.08
CEO Doug Rivard from Equitrader came to Carnegie Mellon to speak about the basic stock terminology and introduce their marketing simulation platform. Equitrader.com is a website that runs stock simulation games and rewards the winners with real money and prizes. The website differentiates itself from its competitors with many different features. For instance, the market information driving the simulation is real-time data, while competitors usually have a 15 to 20 minute delay for their platforms. In addition, the website has a coder platform, allowing quantitative and algorithmic driven traders to create their own computer programs and test them against the markets. The presentation concluded with an online stock competition that was held in conjunction with the Undergraduate Investment Club. The competition will span over the month of April and will be open to Carnegie Mellon Students only. 17 students attended the presentation.

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Upcoming Events in April/July
Alumni Panel | 4.19.08
A question and answer session with Carnegie Mellon Alumni who are working in finance. Students get to an opportunity to ask questions about the career paths of the alumni and get tips on school. The event is held every spring during carnival.

Finance/Marketing Case Competition | 4.26.08
A joint case competition with the Undergraduate Marketing Club, designed to combine aspects of marketing and finance to solve a case. Each team will be comprised of 2 marketing students and 2 finance students. The competition is open to all majors who have taken either Marketing or Finance.

UFA Golf Outing | Late April
A social event designed to bring UFA members together as well as teach a viable business asset. Students will split into smaller groups and play golf at Schenley Park’s golf course. There will an option for those who have never played to receive lessons from peers or Schenley Park’s golf instructors. There will also be an option for those who are more experienced with golf to play with other experienced individuals.

Network New York | July
Every summer, UFA holds a large networking event in New York City. It attracts over 30 recruiters and 100 students who working in the area. The event is a pure networking event, and students are not allowed to bring their resumes. The event allows students to practice their communication skills and gives them a chance to talk to many different recruiters in the New York area. Upon the completion of Network NY, a compiled resume of all the students’ resumes is sent to the recruiters who attended.