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~$7,500,000 Across Four Funds

Global Equity Fund

$1.2M

Fixed Income Fund

$1.5M

SRI

Fund

$2.9M

Alpha Squared Fund

$2.9M

Managed by HIM Students

Team Overviews

MMF analysts take a role in both the A2 or SRI funds. Participation in Desautels Capital Management is the key opportunity for MMF students that differentiates their learning experience. By joining the MMF program, you join a well established student-run investment fund with the infrastructure built for your success.

Structure

Below is the analyst structure for the two funds managed by MMF students. The Alpha Squared Fund is separated into 8 sector verticals of equity analysts. Sector placement is determined via a combination of interest and experience.

Alpha Squared and SRI Funds

Consumers

Energy

Financials

Healthcare

Industrials

Information Tech

Materials

Renewables

*for a comprehensive breakdown of each team, see further down the page

Executives

Analysts have the opportunity to take a larger role within the fund by taking a role as an executive. MMF Analysts can be Strategists, President or Head of a special team. Special teams include Economics, Quant Strategy, Risk Management, Sustainability, Accounting, Compliance, and Alumni Relations. Executives retain their roles as equity analysts within their respective sectors.

A2 Strategist

Acts as the portfolio manager for the A2 fund, taking the lead on capital allocation and assisting the sector verticals on improving research processes.

SRI Strategist

Acts as the portfolio manager for the SRI fund, taking the lead on capital allocation and has clear goals on Socially Responsible Investing.

President

Leader of the program through all initiatives. Acts as a liaison between MMF students and McGill faculty, represents the fund at all events, and continuously engages in initiatives to improve the program.

Special Team Head

Responsible for leading fellow analysts in special teams, in order to generate specialized insights about topics. Acts as a representative for the special team.

Sectors

Consumers

The Consumers Team is responsible for the allocation and selection of stocks in both consumer discretionary and staples. Sector analysts develop a thorough understanding of everything from household products to food/beverages to clothing.

GICS Industry Groups

Automobiles & Components ----- Consumer Durables & Apparel ----- Consumer Services

Consumer Discretionary Distribution & Retail ----- Consumer Staples Distribution & Retail

Food, Beverage & Tobacco ----- Household & Personal Products

Energy

The Energy sector is responsible for researching and investing in both small and large cap companies along the whole energy value chain. We identify potential investing opportunities through thorough bottom-up research combined with deep macroeconomic understanding and analysis. Given the nature of the industry, we believe this strategy will yield the best results.

GICS Industries

Energy Equipment & Services ----- Oil, Gas & Consumable Fuels ----- Electric Utilities

Gas Utilities ----- Multi-Utilities ----- Water Utilities

Independent Power and Renewable Electricity Producers

Financials

The Financials team is responsible for the allocation, valuation and selection of stocks in the financial sector. Our universe of stocks is broad and encompasses several sub-sectors, primarily being banks, insurance firms, and investment funds. We focus on a bottom-up value approach but strive for an allocation that matches our macroeconomic and industry convictions.

GICS Industries

Banks ----- Financial Services ----- Consumer Finance

Capital Markets ----- Insurance

CONSUMERS

GICS Industry Groups

2510 - Automobiles & Components ----- 2520 - Consumer Durables & Apparel ----- 2530 - Consumer Services

2550 - Consumer Discretionary Distribution & Retail ----- 3010 - Consumer Staples Distribution & Retail

3020 - Food, Beverage & Tobacco ----- 3030 - Household & Personal Products

CONSUMERS

GICS Industry Groups

2510 - Automobiles & Components ----- 2520 - Consumer Durables & Apparel ----- 2530 - Consumer Services

2550 - Consumer Discretionary Distribution & Retail ----- 3010 - Consumer Staples Distribution & Retail

3020 - Food, Beverage & Tobacco ----- 3030 - Household & Personal Products

Healthcare

The Healthcare sector performs research and analysis on relevant equities across the Healthcare landscape to find attractive investment opportunities. Our objective is to find compelling investment stories from both the small to large cap world.

GICS Industries

Health Care Equipment & Supplies ----- Health Care Providers & Services

Health Care Technology ----- Biotechnology ----- Pharmaceuticals

Life Sciences Tools & Services

Industrials

The Industrials sub-sector monitors industry trends and performs research and analysis on relevant equities within the North American umbrella to find companies that best fit our views. Given the large amount of securities and business models within the space, the Industrials group focuses on a top-down analysis. This allows us to find interesting stories from both the large and small cap world within sectors that are thriving.

GICS Industries

Aerospace & Defense ----- Building Products ----- Construction & Engineering

Electrical Equipment ----- Industrial Conglomerates ----- Machinery

Trading Companies & Distributors ----- Commercial Services & Supplies ----- Professional Services

Air Freight & Logistics ----- Passenger Airlines ----- Marine Transportation

Ground Transportation ----- Transportation Infrastructure

Information Tech

Information Technology (IT)

The Information Technology sector performs research and analysis on relevant equities in the global IT landscape to find the best equities based on our own views. Communications also falls under this umbrella of IT. Given the large breadth of securities and the variety of subsectors within the large TMT umbrella, we specialize in a bottom-up approach where we try to find unique and interesting stories from both the large cap and small cap world of TMT stocks.

GICS Industries

IT Services ----- Software ----- Communications Equipment

Technology Hardware, Storage & Peripherals ----- Electronic Equipment, Instruments & Components

Semiconductors & Semiconductor Equipment ----- Diversified Telecommunication Services

Wireless Telecommunication Services ----- Media ----- Entertainment

Interactive Media & Services

Materials

The Materials sector is responsible for conducting research and analysis on equities within the natural resources field, excluding oil and gas. Our fund considers natural resources equities to include companies that own, produce, refine, process, transport, and market natural resources or that provide related services. Given the wide breadth of securities and the multiple subsectors of the field, our investment strategy consists of a bottom-up approach within sub-sectors that reflect our macroeconomic and industry views.

GICS Industries

Chemicals ----- Construction Materials ----- Containers & Packaging

Metals & Mining ----- Paper & Forest Products

Renewables

The Renewables sector performs research and analysis on relevant equities in the alternative and renewable energy industries. We identify potential investing opportunities through thorough bottom-up research combined with deep macroeconomic understanding and analysis.

GICS Industries

Electric, Gas and Water utilities ----- Independent Power Producers

Energy Traders ----- Electricity Generators and Distributors

Deliverables & Tasks

As an analyst in the MMF program, students take on a variety of responsibilities. The core deliverables of the year are investment pitch presentations, which are accompanied by other activities to round out the fund managing experience. Altogether, MMF provides a rigorous environment for analysts to 'learn by doing'.

Investment Pitches

Due Diligence

Industry Overview

Investment Pitches

Students recommend an investment idea to the rest of the cohort for their respective sector. If successful, the fund will initiate a position in the security.

Screen ---------------------------- Build ---------------------------- Present ---------------------------- Due Diligence

The pitching process is rigorous, and most presentations typically last 90 minutes when considering time for extensive discussion and questions. Pitches are delivered in the presence of all other equity analysts, as well as at least one of the CIOs.

Due Diligence

After every pitch a due diligence process proceeds a buy order. The team responds to follow up questions about their idea, then a vote is held amongst the cohort to determine if the fund should buy the security.

Each team is paired with another to perform due diligence. For example, the Energy team may be assigned the Consumers team and so subsequent the Consumers pitch, Energy must compile a list of follow up questions for Consumers to answer.

Industry Overview

The first presentation of the year: teams outline current trends in their sector while offering ideas for which sub-sectors appear more or less attractive.

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The "IO" serves as a springboard for future pitch ideas in the coming academic term. It is also a chance for incoming juniors to learn an overview of each sector and become more accustomed to various types of businesses and industries.

Annual Report

Quarterly Earnings

Newsletters

Guest Speakers

External Events

Networking Trips

~$7,500,000 Across Four Funds

Managed by HIM Students

Structure

Alpha Squared and SRI Funds

Consumers

Energy

Financials

Healthcare

Industrials

Information Tech

Materials

Renewables

Executives

Acts as the portfolio manager for the A2 fund, taking the lead on capital allocation and assisting the sector verticals on improving research processes.

Acts as the portfolio manager for the SRI fund, taking the lead on capital allocation and has clear goals on Socially Responsible Investing.

Leader of the program through all initiatives. Acts as a liaison between MMF students and McGill faculty, represents the fund at all events, and continuously engages in initiatives to improve the program.

Responsible for leading fellow analysts in special teams, in order to generate specialized insights about topics. Acts as a representative for the special team.

Sectors

Deliverables & Tasks

Investment Pitches

Students recommend an investment idea to the rest of the cohort for their respective sector. If successful, the fund will initiate a position in the security.

Screen ---------------------------- Build ---------------------------- Present ---------------------------- Due Diligence

The pitching process is rigorous, and most presentations typically last 90 minutes when considering time for extensive discussion and questions. Pitches are delivered in the presence of all other equity analysts, as well as at least one of the CIOs.

Due Diligence

After every pitch a due diligence process proceeds a buy order. The team responds to follow up questions about their idea, then a vote is held amongst the cohort to determine if the fund should buy the security.

Each team is paired with another to perform due diligence. For example, the Energy team may be assigned the Consumers team and so subsequent the Consumers pitch, Energy must compile a list of follow up questions for Consumers to answer.

Industry Overview

The first presentation of the year: teams outline current trends in their sector while offering ideas for which sub-sectors appear more or less attractive.

The "IO" serves as a springboard for future pitch ideas in the coming academic term. It is also a chance for incoming juniors to learn an overview of each sector and become more accustomed to various types of businesses and industries.

Annual Report

A collection of historic performance and commentary on key holdings. Published and promoted externally for investors.

Finalized in January, each sector is responsible for their section of the report and teams work together to outline their past views, performance, and outlook for the coming year.

Quarterly Earnings

Whenever a holding releases earnings, the team must produce a report updating their perspective and recommend a sell/hold/buy.

Earnings reports refresh opinions and act as check-in points to holding performance. The reports contain: a summary, security performance, quarterly figures, updates to investment theses, and a recommendation.

Newsletters

Each fund produces a newsletter each week to update the cohort on performance and important market news events.

The newsletter acts as a touch point each week to monitor performance relative to each fund's benchmark, and it keeps teams on alert for developing market trends.