Investment Fund Students Pitch Strategies to Distinguished Judges

By William Rindfuss, executive director of strategic programs, Haas Finance Group

It was a format familiar to many, but without any singing or dancing. And with much nicer judges.

On May 9, students in the Haas Investment Fund course — an experiential learning course in our Innovative Leader curriculum, competed against each other in pitching to judges the investment strategies they’d been developing over the past semester. The purpose was for the teams to benefit from feedback and advice from this panel of high-level investment professionals (who have a Berkeley MBA and two Haas PhD degrees among them), and for the judges to recommend allocation of the fund itself between the two competing teams, based on the market-beating promise of their innovative strategies — taken together with the degree of perceived risk.

Investment executive and Haas alum Minder Cheng (l.) with Haas Investment Fund students.

Judges included Minder Cheng, MBA 89, PhD 94, independent director with Investment Technology Group, Inc. Previously, Cheng served as chief investment officer for index equity and capital markets globally at BlackRock and as chief investment officer for the Equity and Capital Markets division of Barclay’s Global Investors worldwide.

Students in the course are encouraged to consider their own backgrounds and areas of expertise that would provide their teams with unique insights into the fundamental dynamics of particular industries or macro trends. They use skills learned in the Problem Finding Problem Solving course in “divergent thinking” to brainstorm multiple possible theses, and in “convergent thinking” to narrow and refine the list for further research and analysis. They are introduced to the particular financial instruments that might be used to implement a strategy (most students benefit from concurrently taking the Investments course), and they may then analyze their strategies with factor models and backtest them with historical data. Students received training on financial tools such as Bloomberg, FactSet, and BarraOne — as well as research tools and databases available from the Haas Library.

Team 1 had developed a “matched pair” strategy of long/short positions within multiple segments of the automotive components industry, with positions selected based on varying degrees of commitment to green technology. Team 2 had developed a screen for promising performance in the apparel retail space based in part on real-time trends in “Likes” of particular brands on Facebook.

Guidance was constructively delivered by the judges and was eye-opening to the students. A member of Team 1 felt the judges “provided extremely insightful feedback regarding our proposed investment strategy, including their suggestion to look more closely at current valuations and their recommendation to reconfigure our portfolio to a long-only one with risk analyzed through a factor model.”

A member of Team 2 added “The panelists’ questions were candid and thought-provoking.  It was reassuring to find that we had already discussed some of them in our team meetings — while there were others we hadn’t considered at all. To be able to present in front of such a distinguished panel was truly a phenomenal experience.  The panelists were respectful, kind, and generous with their compliments.”

In the end, the judges allocated the fund 60/40 between the two teams. After some adjustments based on the insights and suggestions of the judges, the teams will implement their strategies starting this June and will continue to implement, monitor, and manage their positions until December.

This one-year, three-unit course is cross-listed between the Full-time and Evening & Weekend MBA Programs and was led this year by Finance faculty members Christine Parlour and Bill Rindfuss.

With the pressure of pitching over…

…these investment fund teams will spend the next six months implementing their strategies.

Berkeley MBA Students Escape from Alcatraz

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By Guest Blogger Dennis Ducro, MBA 13

As happens so often in business school, an ordinary conversation can lead to great adventures and impact. When Federico Acabbi, MBA 12, mentioned he had heard stories of an Alcatraz Crossing swim,  I took the hint.

As co-president of Redwoods at Haas, I work to bring the natural beauty of California closer to our MBA students, and to challenge them. This event fit into Redwoods’ calendar, and the first edition of “Haas Escapes from Alcatraz” was born. It promised not become a walk in the park…the Bay is extremely cold, the currents are strong, and the island lays 1.5 miles out in the open water.

Eighteen MBA students immediately signed up for the challenge, and the team could be spotted regularly in the swimming pools on campus in the months preceding the event. Both amateur and former professional swimmers had made this their goal for the end of the academic year, before heading out to internships and full-time roles.

On Sunday April 29, at 6:45am, the time had come! The team boarded a boat that brought them to a deserted Alcatraz Island, and at 7:00am they jumped in the water! Classmates, a gorgeous sunrise, and views of the impressive Golden Gate Bridge and San Francisco accompanied the students during their swim. Their white caps read: “No One escapes?! Challenge the Status Quo!” referring with a smile to one of the four principles that define Berkeley-Haas.

All of us made it to shore, and the supportive community that had showed up to cheer could read a great sense of achievement from the exhausted, but happy faces. Two students even swam without any wetsuit, which is truly unbelievable since the thermometer indicated 51F for the water. The shower, sauna, and brunch with friends were well deserved (as was the afternoon nap).

Top row left to right–Julie Miller, Sebastiaan Verhaar, Hans Lintermans, Dennis Ducro, Federico Acabbi, Mark Stolze, Brandon Piper, Bernie Murphy, Gene Boyle.; Two in the middle–Tycho Moencks and Ismael Ghozael;Bottom row left to right–Gustavo Ribeiro, Suresh Krishnamoorthy, Boris Kopinitsch, Jaime Szigethi, Dan Stotts, Ariel Dekovic

Look out for next year’s edition!

Haas Achieves: A Video Year-in-Review

Congratulations to the full-time MBA classes of 2012 and 2013. In just one year you have accomplished an extraordinary amount, from organizing conferences and international treks to winning case competitions. We are so proud of all you achieve at Haas–and have captured what we could (i.e. some, certainly not all!) in this Haas Achieves video. We know you have many achievements yet to come and wish you the best.

Vetted

Dan Kanivas (right), MBA 12, with Lt. Col. Eric Kail, his battalion commander in Korea

Joel Gutierrez, of the Berkeley-Columbia Executive MBA Program, says his military experience has given him the ability to “tolerate a lot of multiple tasks and prioritize,” as well as “a great sense of humor to lighten the atmosphere when things get tense.” Gutierrez, BCEMBA 12, is one of a group of veterans at Berkeley-Haas with not only combat training  in common, but an interest in rounding out leadership skills they’ve honed in the military with those they are gaining in Berkeley MBA programs.

Blake Coleman, of the Evening & Weekend MBA Program, just returned from a flying trip for the Navy, and says Haas has “greatly broadened my spectrum of experiences.”

“The business-school approach to problem-solving often comes from a very different angle than the rigid approach taken by the military,” explains Coleman, MBA 13. In his Equity Valuation and Negotiation classes, for example, he has learned a more flexible approach to problem-solving and, particularly from Negotiations, that many problems have multiple solutions. As a military aviation man, Coleman feels he brings a mindset of having a goal, being objective, and “attacking the complex questions posed in class.”

Dan Kanivas, MBA 12, is finding that his U.S. Army background, including the time he spent in Korea and Iraq, is helping him find his leadership style. “The most effective leaders in the Army did not rule with an iron fist and they were well liked,” Kanivas (pictured above) says. “Even in the Army, you would invite dissent. But then, once the decision was made, everyone had to march to that step and follow along.”

Kanivas was a summer intern for the Prudential Capital Group in San Francisco, and even though there is no direct connection between fixed-income investing and the military, Kanivas says, “the interpersonal skills I learned in the Army are huge. You have to convince the customers to trust us and our team.”

All appreciate the welcome they’ve found at Berkeley-Haas. “Veterans need to know that UC Berkeley, and especially Haas, are very receptive to veterans and the military,”says Gutierrez.

A number of the vets connect through the Haas Veteran’s Club, which recently participated in a panel with undergraduate veterans to discuss the graduate application process. The club hopes to soon bring its 30 members together in a mixer with Berkeley Law veterans.

As for what veterans bring to Berkeley-Haas, Dean Lyons reflects on how those who bring the military spirit of service to their studies align well with the school’s four defining principles: Question the Status Quo, Confidence Without Attitude, Beyond Yourself, and Students Always.

Diversity Boost at Berkeley Haas

The Consortium's entering Berkeley-Haas MBA class, along with staff from Admissions and Career Services

An even more diverse group of students will hone their leadership skills in the Full-time Berkeley MBA Program this year, thanks to the Haas School rejoining The Consortium for Graduate Study in Management.

This year’s entering full-time MBA class was the first to apply since Berkeley-Haas re-entered The Consortium in March 2010. Applications from under-represented minorities for the class of 2013 jumped 44 percent and the percentage of under-represented minorities enrolled nearly doubled to 9.6 percent of the class—the highest percentage in recent years.

The Consortium is an alliance of top U.S. business schools and corporations aimed at fostering diversity among graduate business students and corporate leaders. Berkeley-Haas re-gained membership after an expansion to The Consortium’s mission allowed the school to join and still be in compliance with California State Proposition 209.

Three members of the entering class are serving as liaisons to the Consortium: Amara Aigbedion, Samir Das, and Benny Du. Aigbedion says the strong network is just one of the benefits realized so far. “The opportunity to be a part of this network of talented, like-minded, and genuinely warm-hearted people has a value beyond measure,” she says.  As a liaison, Aigbedion will represent the Berkeley MBA Program to prospective students and hopes to bring awareness of Berkeley-Haas to more minorities by reaching out to other MBA organizations and networks.

Du learned of the Consortium while mentoring underprivileged high school students in Los Angeles as a Riordan Fellow, teaching them the importance of financial literacy and business leadership. “Being a member of the Consortium has been an amazing experience,” he says. “We got to work closely with advisers from the Career Management Group in preparing for the OP (summer orientation) in Minneapolis, where I met and networked with many of the corporate sponsors and even got a few interviews for internship opportunities next summer.”  Du looks forward to working with the different affinity student groups and the MBAA’s VP of diversity “in ensuring that the entire Haas community will play a key role in advancing the Consortium’s mission.”

MBA Internships: San Francisco Unified School District

(L. to R.) German Freiwald with Paul Perry, MPP 11, Moritz Plischke, and Bruce Dos Santos, both MBA 12. Together they took first place in the 2011 Haas Education Leadership Case Competition.

Student: German Freiwald, MBA 12

Interning with: San Francisco Unified School District, San Francisco, CA

Thrilled to be with SFUSD because: “I get to work on projects which have a direct impact on children.”

Can’t believe he’s getting the chance to: Use his data analysis skills to help SFUSD make strategic management decisions. “All of my work leads to the district utilizing their resources as efficiently as possible so that we are better able to close the opportunity gap for children.”

Already he’s learned: “How to ask the right questions, use data to drive decision making, and influence the strategy of the Early Education Department.”

Advancing career goals by: Learning how districts are run and getting access to all of the key decision makers. “It is a very resource constrained and complex environment that demands the best of me everyday. As someone that wants to work in education, this internship is providing me with invaluable perspective on the challenges urban school districts face.”

Who makes you proud to be Berkeley-Haas? Tell us in the comments below or share your stories with vgilbert@haas.berkeley.edu.

MBA Internships: Visa

Student: Amy Josephson, MBA 12

Interning with: Visa Inc, Foster City, CA

Thrilled to be with Visa because: It’s “a major global brand with tons of interesting areas to focus on as a marketer– from global brand strategy to Olympics sponsorship to innovative new payment solutions in the mobile and eCommerce space. “

Can’t believe she’s getting the chance to: Get exposure to the CMO (Chief Marketing Officer) through intern executive breakfasts and project presentations with her team.

Already she’s learned: “How to prep a building for painting!” (through a Visa Volunteers day at a local elementary school.) She’s also gained good strategic frameworks for product marketing.

Advancing career goals by: “Applying strategic thinking to marketing in a way I haven’t done before.”

Who makes you proud to be Berkeley-Haas? Tell us in the comments below or share your stories with vgilbert@haas.berkeley.edu.

MBA Internships: Disney

Student: Sam Filer, MBA 12

Interning with: Walt Disney Studios, Los Angeles

Thrilled to be with Disney because: “It is the ultimate entertainment company and I’m contributing to its transition to digital.”

Can’t believe he’s getting the chance to: “Work on product development, attend private screenings, and get paid to go to Disneyland.”

Already, he’s learned: How movie distribution works, both traditionally and digitally.

Advancing career goals by: “Expanding my network dramatically in entertainment.”

Who makes you proud to be Berkeley-Haas? Tell us in the comments below or share your stories with vgilbert@haas.berkeley.edu.

MBA Internships: Facebook

Student: Hans Lintermans, MBA 12

Interning with: Facebook, Palo Alto, CA

Thrilled to be with Facebook because: “The energy is amazing. Every week new ideas are thrown around and received with great enthusiasm.”

Can’t believe he’s getting the chance to: Ask Mark Zuckerberg any question during weekly company-wide Q&As and launch an internal solution without much supervision.

Already he’s learned: That he works best in an environment that focuses only on value-added projects. “The company lives and breathes, ‘move fast and break things’ which means that I get the opportunity to work on projects that have real impact, even though they might not be perfect.”

Advancing career goals by: Gaining real insight into a successful startup. “During my MBA at Haas, I am focusing on entrepreneurship and marketing. Working on Facebook’s global marketing team gives me the ideal platform to put what I learn in action.”

Who makes you proud to be Berkeley-Haas? Tell us in the comments below or share your stories with vgilbert@haas.berkeley.edu.

MBA Internships: ConAgra Foods

Student: Emily Battle, MBA 12

Interning with: ConAgra Foods, Boise ID

Thrilled to be with ConAgra because: She’s getting exposure to brand management for a CPG company and a glimpse into life as a brand manager. “I am learning a lot about mass agriculture and manufacturing while maintaining a focus on marketing strategy and execution.”

Can’t believe she’s getting the chance to: Work on a project that has a high level of visibility throughout the Board of Governors. “I am getting to interact with Sr. level management and present my recommendations to ConAgra’s President of Commercial Foods.”

Already she’s learned: “Brand management is ultimately about understanding your consumer and their needs.” She’s also discovering that brand managers “must have strong leadership skills in order to successfully manage cross-functional teams.”

Advancing career goals by: Gaining experience in the CPG industry in which she hopes to work. “This internship is a great way to work on projects that will be relevant during interviews.”

Who makes you proud to be Berkeley-Haas? Tell us in the comments below or share your stories with vgilbert@haas.berkeley.edu.