Recent Transactions

Student Investment Fund

Recent Transactions

 

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2018-19 Holdings Updates

 


 

BUYS

FALL 2018

 

  • Anheuser-Busch InBev (BUD)

Anheuser-Busch InBev (ABInBev) is the largest brewer in the world and one of the world’s top five consumer product companies. Their product portfolio contains five of the top ten beer brands by sales, and eighteen brands with retail sales over $1 billion each, including Budweiser, Corona, Stella Artois, Becks, Bud Light, and Modelo. ABInBev was aquired due to their sheer power of reaching economies of scale globally and their exposure to key emerging markets. A recent dividend cut made BUD a good value at this time.

  • DTE Energy (DTE)

DTE Energy is a Detroit-based diversified energy company involved in the development and management of the energy-related businesses and services. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan and a natural gas utility serving 1.3 million customers in Michigan. DTE was acquired because they have a consistent revenue base with their utility, as well as an attractive growth opportunity with their energy generation business.

  • Martin Marietta Materials (MLM)

Martin Marietta produces crushed stone, sand, and gravel for customers primarily concentrated in the Southwestern and Southern United States. MLM also produces magnesia-based chemical products used in agricultural and industrial applications worldwide. MLM’s quarry  locations near key, high-growth metropolitan areas such as Denver, Cincinnati, Dallas-Fort Worth, and Atlanta give the company a competitive advantage, since competition for gravel is limited to a small geographic radius.  MLM has a diverse range of government and private-sector customers which reduces its business-cycle risk.

  • MasterCraft Holdings (MCFT)

MasterCraft is a well-known designer, manufacturer, and marketer of premium performance sport and outboard boats. They deal in 46 different countries around the world and have recently acquired NauticStar, a leading distributor and manufacturer of boating components and equipment. MasterCraft was acquired because of their leading market share in a niche industry, as well as their track record of innovation within the industry. With international expansion plans in the works, MCFT is considered a growth play.

  • Planet Fitness (PLNT)

 Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States. The company’s low membership rates and emphasis on the “Judgement Free Zone” help to attract customers who might otherwise find gyms intimidating. The SIF voted to purchase Planet Fitness due to their steady financial results and attractive growth prospects. Strong four-wall EBITDA and franchise growth fuel a 15%+ annual revenue CAGR.

  • Walt Disney Co (DIS)

The Walt Disney Company is a diversified mass media and entertainment conglomerate headquartered in California. On a revenue basis it is the world’s largest independent media conglomerate comprised mostly of media networks, parks, resorts, consumer products, as well as studio entertainment. Disney has been dominant in resort parks which continues to increase attendance and has high growth potential in studio entertainment and media networks. Disney’s studio entertainment has been acquiring very successful companies and brands such as Marvel Comics and LucasFilms. These key acquisitions have allowed Disney to grow revenue and market share as well as allow them to easily vertically integrate many different media components into their conglomerate. Disney’s ability to cross sell its products across their many business segments allow it to have easy control over their product supply chain. Disney has effectively been able to show their presence in the digital media age, and is expected to grow into it with the industry.

 

 

DIVESTMENTS

FALL 2018

  • Alaska Airlines (ALK)

  • Celgene (CELG)

  • Cooper Standard (CPS)

  • Electronic Arts (EA)

  • Facebook (FB)

  • Good Year Tire (GT)

  • Kroger (KR)