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Paul Johnson
Managing Director, Nicusa Investment Advisors
Paul Johnson
Paul Johnson runs Nicusa Investment Advisors, an advisory firm focused on helping CEOs and Boards of Directors deal with
strategy, capital allocation, shareholder value creation, and corporate governance. Paul applies his 30 years of experience as an
investment professional, combined with his more than 20 years as a business school professor, to help senior managers sort
through these critical strategic issues. Paul is a Senior Advisor to Bowen Advisors, a Boston-based M&A and strategic advisory
firm to emerging and high-growth technology companies. Paul's primary focus is to offer strategic advice to companies in digital
media and related communications technologies. Paul is the founder and investment manager of Nicusa Capital Partners, a
private investment partnership that he started in 2003. As an investor, Paul has invested in virtually all sectors of the economy.
He is also a Fellow at the Gabelli Center for Global Security Analysis at Fordham University. Prior to founding Nicusa, Paul was a
Managing Director in the Equity Research Department of Robertson Stephens, and a Senior Advisor with ExSight Capital.
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The Holy Grail
Today
Year 1
Year 2
Year 3
Year 4
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The Challenge
The goal is to outperform the market
The challenge is to
get the right stocks
into the right portfolio
at the right time
Successfully pitching is the key to overcoming this challenge!
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Portfolio Managers
Focused on why the market is
wrong
Focused on returns (over time)
Faced with
information/cognitive overload
Need to be convinced
Evaluated on the performance
of their portfolios
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Content
Delivery
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Stated criteria
Price range, HK$
Location (near office or MTR)
Size (>1000 GFA)
Luxury apartment
Amenities (modern kitchen)
Modern building, not haunted
Nice neighborhood, near shops
Spacious, with natural light
Feng Shui
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Criteria, parsed
Quantitative:
Price range, HK$
Location (near office or MTR)
Size (>1000 GFA)
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Qualitative
Numerical Criteria
Objective Criteria
Subjective Criteria
Luxury apartment
Nice neighborhood
Feng Shui
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PMs criteria
Market cap
Historical growth rate
Trading volume
Return on capital
Analyst support
Internet based
Asia focused
Attractive valuation
Strong competitive position
Good growth prospects
Catalyst
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Qualitative
Numerical Criteria
Objective Criteria
Subjective Criteria
Attractive valuation
Outperformed Index
Internet-based
Asia focused
Catalyst
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(035420 KRX)
http://www.naver.com/
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Qualitative
Numerical Criteria
Objective Criteria
Subjective Criteria
Attractive valuation
Outperformed Index
Internet-based
Asia focused
LINE IPO
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Objective Criteria
Subjective Criteria
Attractive valuation
Outperformed Index
Internet-based
Asia focused
LINE IPO
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Objective Criteria
Subjective Criteria
Attractive valuation
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Implicit
Objective Criteria
Subjective Criteria
Attractive valuation
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We try to find some set of statistics that motivate us to act. The analogy I have always used is that when
you go into the beer section of the supermarket, you see 25 different brands of beer. Theres something
that makes you reach for one particular brew. In the parlance of the stock market, theres some
combination of return-on-equity, growth rate, P/E ratio, dividend yield, and asset value that makes you act.
Graham & Doddsville interview with Leon Cooperman Fall 2011
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Portfolio Manager
Message
Content
Audience
Listens
Audience
Adopts
Delivery
Chemistry
BARRIERS
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Analysts responsibility
Make sure you are crystal clear on
all of your portfolio manager's
explicit criteria there is no
excuse not understand this criteria
Carefully observe portfolio
manager to better understand
implicit criteria
Understand why companies make it
into the portfolio
More importantly, understand why
companies are rejected!
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Keep it simple
Give them something for their money
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less frustration
Know the PMs investment criteria
No excuse for not fully understanding his explicit criteria
Work collaboratively to understand his implicit criteria
Socialize ideas early
Get to know if the portfolio manager will adopt
Kill bad ideas before too much time has been invested
Co-op their interest and support
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Q&A
Please submit your questions via the text box
on the left side of your window.
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