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Feature Story Sachin Aggarwal 2009 NLF Managers Fund Manager of The Month Taylor Destefano Stock Pick of The Month Wal-Mart Nittany Lion Fund November Sector Summaries Nittany Lion Fund Portfolio Performance
Information Technology Lead Associate Materials Lead Associate Telecommunications Lead Associate Utilities Lead Associate
Brian Clionsky Santosh Sankar Darrell Reid Jason Gibbons Jake Kimble Hassan Chaudhry Allen Lutz Vinay Ayala
"For students interested in jobs on Wall Street, I would encourage you to be very proactive and targeted in your job search. In today's environment, employers can be far more selective in their hiring decisions, both from a GPA and experience standpoint. It will be vital for candidates to differentiate themselves by articulating not only why they want the job, but how specifically they'll be additive to the position." Ali Chaudhry, Merrill Lynch Investment Banking, NLF Alumni
Key Drivers: A negative economic outlook sparked by increasing unemployment, recordlow consumer confidence, and a nationwide destruction in housing prices has allowed Wal-Mart to separate itself from the rest of the pack. As a low-price leader, the company's market position allows them to take ad-
Healthcare returned -11.28% nominally in November and underperformed the S&P 500 Healthcare benchmark by -4.42%. Gilead Sciences and Johnson & Johnson outperformed the benchmark with returns of -2.31% and 4.50% respectively. Becton Dickinson & Company slightly underperformed the index; however, they declared a quarterly dividend of $0.33 a share. The largest laggard was Stryker Consumer Staples returned -1.15% nominally Corp. which had a return of -27.20% during in November, outperforming the S&P 500 the month of November as investors became Consumer Staples benchmark by 0.88%. Coca- worrisome that the recession would case the Cola and Wal-Mart outperformed by 12.76% Orthopedic segment to incur slow growth and 6.99% respectively, while General Mills going forward. and Philip Morris International underperIndustrials returned -8.57% nominally and formed returning -8.78% and -5.04% respectively. The sector replaced Kimberly-Clark and returned -1.03% relative to the respective S&P bought into Wal-Mart during the month due to benchmark for the month. Stericycle, Ametek and Danaher all outperformed the benchmark Kimberly-Clarks' exposure to international while General Dynamics and Union Pacific markets and decrease in volume sales as a underperformed the benchmark. We also purresult of price increases. chased Union Pacific to give ourselves expoEnergy returned -4.58% nominally in Nosure to the transportation industry and further vember and underperformed the S&P 500 diversify our sector. Our sector continued to Energy benchmark by -4.97%. Chesapeake weaken as global economics further deteriounderperformer the benchmark by 12.25% and rated. We continue to mitigate this risk by Exxon Mobil outperformed by 17.69%. Cono- holding Stericycle, which operates in a noncoPhillips was replaced by Occidental Petrocyclical industry and Danaher which is an inleum in order to gain more exposure to crude dustrial conglomerate with diverse revenue oil and shave the portfolio's heavy weighting to streams. natural gas. This trade was also accompanied Information Technology returned -7.43% by a shave to Southwestern and addition to nominally but outperformed the S&P500 Apache in order to take advantage of shortTechnology benchmark by 4.54%. Automatic term gains and reduce market cap risk. Data Processing rose 17.48% primarily due to Financials returned -11.45% nominally dur- strong quarterly earnings and a 14% increase in ing the month of November, but outperthe quarterly dividend. Cerner fell 3.36% but formed the S&P Financials Sector benchmark outperformed the benchmark due to robust by 8.98%. The financial sector made no trades fourth quarter guidance that met analyst expecduring the period. Aflac and BlackRock were tations. Microsoft and Google fell , returning the sector's top outperformers returning a -9.45% and 18.48% respectively. Intel shares relative performances of 29.40% and 17.77% fell 13.92% as the company lowered guidance . respectively. Aflac outperformed due to IBM fell 12.23% and Amphenol fell 18.95% strong business operations and an appreciating
NLF Sector Analysis Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecommunications Utilities *Geometric Calculations
a/o 11/28 $53.25 $58.75 $52.29 $46.87 $55.88 $63.17 $42.16 $77.30 $80.15 $26.79 $17.18 $50.74 $34.37 $54.14 $78.99 $19.85 $52.77 $46.30 $125.71 $31.66 $30.21 $44.79 $76.60 $63.53 $58.58 $38.92 $51.67 $57.30 $50.04 $34.93 $55.64 $20.22 $81.60 $41.06 $13.80 $292.96 $35.98 $23.22 $23.99 $38.39 $43.70 $59.05 $16.54 $27.24 $28.56 $26.37 $40.39 $36.32
Monthly S&P 500 Relative (4.45%) -10.37% 5.93% (1.15%) -2.04% 0.88% (4.58%) 0.39% (4.97%) (11.45%) -20.43% 8.98% (11.28%) -6.86% (4.42%) (8.57%) -7.53% (1.03%) (7.43%) -11.97% 4.54% (3.56%) -12.18% 8.62% (6.83%) 5.62% (12.45%) (7.01%) 2.21% (9.23%)
Current Holdings a/o 10/31 or Purchase 1 Nike Inc $57.63 McDonald's Corp. $57.93 V F Corp. $55.10 Coca-Cola Co $44.06 Wal Mart Stores Inc. $53.24 General Mills Inc. $67.74 Philip Morris International Inc $43.47 Apache Corp. $82.33 Exxon Mobil $74.12 Noble Corp. $32.21 Chesapeake Corp. $21.97 Schlumberger Ltd. $51.65 Southwestern Energy $35.62 Occidental Petroleum $47.70 The Goldman Sachs Group $92.50 Blackrock Inc. $24.20 Federated Investors Inc. $66.67 Aflac Inc. $44.28 Bank of New York Mellon Corp $131.34 JPMorgan Chase & Co. $41.25 PNC Financial Services Group $32.99 Gilead Sciences, Inc. $45.85 Genentech Inc $82.94 Becton Dickinson Co. $69.40 Johnson & Johnson $61.34 Stryker Corp $53.46 General Dynamics $60.32 Stericycle Inc. $58.43 Union Pacific Corp $63.41 Ametek Inc. $33.25 Danaher Corp. $59.24 Microsoft Corp. $22.33 Intl Business Machines $92.97 Automatic Data Processing Inc. $34.95 Intel Corp $16.03 Google Inc. $359.36 Cerner Corp. $37.23 Amphenol Corp. $28.65 Freeport Copper & Gold Inc. $29.06 Ecolab Inc $37.26 FMC Corporation $43.54 Praxair Inc. $65.15 Cisco Systems, Inc. $17.77 American Tower Corp. $32.31 AT&T Inc. $26.77 Transcanada Corp. $30.30 Consolidated Edison Holdings $43.32 Southern Corp $34.93 *red price means purchased in November 1 If purchased after 11/1/08, then purchase price is displayed
Monthly Performance (7.60%) 1.42% (5.10%) 6.38% 4.96% (6.75%) (3.01%) (6.11%) 8.14% (16.83%) (21.80%) (1.76%) (3.51%) 13.50% (14.61%) (17.98%) (20.85%) 4.56% (4.29%) (23.25%) (8.43%) (2.31%) (7.64%) (8.46%) (4.50%) (27.20%) (14.34%) (1.93%) (21.09%) 5.05% (6.08%) (9.45%) (12.23%) 17.48% (13.92%) (18.48%) (3.36%) (18.95%) (17.45%) 3.03% 0.37% (9.36%) (6.92%) (15.69%) 6.69% (12.97%) (6.76%) 3.98%