Global Perspectives Fund 2011/2012 Annual Report

Table of contents

Letter from the Portfolio Manager 1

Letter from Faculty Advisors 3

Performance Overview 4

Risk Management 8

Highlights: A Year in Review 9

Macroeconomic Outlook 14

Sector Outlooks 16

Appendix - Portfolio Holdings 21

2011-2012 Bios 24

2012-2013 Bios 26

Letter from the portfoLio manager

for the fiscal year ending march 31, 2012, the gpf returned -3.96%, below our benchmark return by

6.17%. the fund’s net asset Value was at $1.78m, which is net of $100k distribution to the Kenan-

flagler Business School foundation. Underperformance in the portfolio was largely driven by poor

security selection in the equity portfolio, the lack of a special situations portfolio and poor overall

asset class selection. three tactical rebalances had significant positive contributions: overweighting

more defensive sectors, shifting the real assets to reits versus commodities and overweighting high

yield and emerging market debt in the fixed income portfolio. each of these was part of a broader

macro-economic analysis conducted by our market and fixed income strategist in September.

Starting in august 2011, the gpf began a transfer from interactive

Brokers to merlin pB. this transfer was part of our effort to improve

access to performance and risk metrics available on the merlin system.

Unfortunately the transfer took more time than anticipated and locked up

our trading capabilities for nearly two months. most of our drawdown

(-6% versus benchmark) occurred during this period.

the three key initiatives brought online by the class of 2012 were a removal of all etfs from the

equity portfolio, a robust asset class and sector level attribution analysis and the full implementation

of alpha theory into our portfolio management. going forward the class should be able to better

balance and optimize their tracking risk with alpha generating opportunities and see how these

decisions have directly impacted the overall portfolio returns. although our class wasn’t able to fully

benefit from these new tools from a returns perspective, we believe that each of these initiatives is

critical in improving the educational value and management of the portfolio.

the class of 2013 is focused on portfolio structure, portfolio monitoring and process discipline with

the ultimate objective of allocating to the best possible investment ideas. the team has already

begun to decrease and limit total fund positions, encourage alpha generation through greater short

exposure and maintain a high level of accountability through weekly, in-class portfolio reviews.

Significant macroeconomic risks continue to threaten global markets and yet implied volatility

remains at the bottom of its three year range. With that in mind, the new class plans to be prudent

in targeting risk and will manage portfolio hedges accordingly.

Sincerely,

preetesh Kantak

Scott Simonton

Letter from the Portfolio Manager

We are pleased to present the Annual Report for the Global Perspectives Fund (gpf) for

fiscal year end march 31, 2012. During this period, some of the fears that were building during

much of 2010 finally came to head. fears of a european contagion spread through the global

markets during the summer and fall of 2011; the worries were further flamed by a failed debt

negotiation between the White house and Congress. although the markets recovered in Q4 2011

and Q1 2012, the clouds of uncertainty – europe & Bush tax Cuts – still linger. to add to this is

economic uncertainty, asia and Latin america, which have thus far been the primary stabilizers

of global growth, are showing signs of a slowdown due to high rates and slowing fiscal stimulus.

as a class, since last year we have taken a more defensive stance in gpf, but have maintained a

long bias as we expect the recovery to continue, albeit slowly.

Scott Simonton (left) and Preetesh Kantak (right)

1 2011 / 2012 annUaL report 2

Since the Global Perspectives Fund was formed in August of 2008, it has returned 4.49% on an an-

nualized basis, topping our annualized benchmark by 0.06%. as noted earlier, for the most recent fiscal year

ending march 31st, 2012, the gpf returned -3.96%, compared to our benchmark performance of 2.20%.

our performance is best illustrated graphically. the chart above shows gpf performance versus the

policy benchmark and excess return. the numbers indicate key events that materially affected our

performance over the year.

1. In late April 2011, the class removed nearly 70% of ETF exposure in the equity portfolio.

We also gave full authority to the sector analysts to invest proceeds in individual securities, providing

them with the “investable” universe of all securities in the mSCi all Country World index. We

believe this move was necessary to address both aspects of the funds objective. first, by moving

to single stocks and allowing analysts to bear some of the portfolio return risk, we hoped to

remove any “closet” indexing. Second, we hoped that greater tracking risk would allow us to

position the portfolio in a more nuanced and long-term alpha generating way.

Performance Overview PreeteshKantakandScottSimonton

performanCe oVerVieW

But that has not been the case throughout the

year. Since march 2010 the ViX index has started

from a level close to the present and risen to a

level three times as high before falling back again.

our students have not had the opportunity to

relax. the choice between safety and opportunity

has been a constant theme over the past twelve

months. the macroeconomic perspective and

asset allocation effort were critical and at times

they overshadowed security selection.

the transition from interactive brokers to merlin did not proceed

as smoothly as anticipated, demonstrating the importance of fund

infrastructure and process to portfolio performance.

as faculty advisors, financial education through experience and

teaching students to be team-playing self-starters are our primary

goals. We continue to stress the global reach of the fund and

to encourage students to seek opportunity around the world.

We maintain an emphasis on investment strategies beyond long

domestic equities to include foreign firms, commodities, foreign

exchange, yield curves, financial futures and special situations.

We are proud of the accomplishments of the class of 2012 and

expect even more of the class of 2013. While increased market risk

may be just around the corner, we are convinced that rigorous analysis,

individual initiative and peer review will continue to advance the

twin fund objectives, return and education, over the coming year.

as always, we appreciate and are grateful for your support.

Sincerely,

alexander arapoglou

mustafa gültekin

Chip Snively, Cfa

It is our pleasure to introduce the annual report for the Global

Perspectives Fund (GPF) for the year ending March 31, 2012.

although the year 2011 saw continued recovery from the first

domestic banking panic since the great depression, the news on the

international front has been more downbeat as the sovereign debt

crisis continues without respite. intermittent stopgap measures to

restore confidence in europe’s periphery have led global markets to

vacillate between risk on and risk off. meanwhile the inability of the

european Union to come to a consensus on a sustainable policy that

balances growth, austerity, full employment and labor market reform

has undermined public trust in european sovereign debt and financial

institutions, particularly after the failure of the greek restructuring.

emerging markets have suffered from reduced growth prospects as a

consequence of contagion. political turmoil in egypt, Libya and Syria

has combined with the threats to world peace from nuclear programs

in iran and north Korea. to an uncertain degree the US seems san-

guine about these events; the ViX index is flirting with five year lows.

Letter from Faculty Advisors

Portfolio Performance and Key Events (3/31/11 - 3/31/12)

n Excess Return n Fund n Policy BM

3/31/11

11/31/

11

4/30/11

12/30/115/31

/111/3

1/12

6/30/11

2/29/12

5.0%

0.0%

-5.0%

-10.0%

-15.0%

-20.0%

26

7/31/11

8/31/11

9/30/11

10/31

/11

5

4

1

3

3 2011 / 2012 annUaL report 4

ToP NEGATIvE CoNTRIbuToRS

Ticker Contribution Total Return

ipCm (the hospitalist Company) -0.96% -31.14%

arCo (arco Dorados) -0.57% -22.04%

ViV (Vivendi) -0.80% -32.79%

tSCo (tesco pLC) -0.95% -22.10%

tne (telenorte Leste partipacoes) -1.23% -41.03%

ToP PoSITIvE CoNTRIbuToRS

Ticker Contribution Total Return

LVS (Las Vegas Sands) 0.82% 32.5%

hgSi (human genome Science) 0.65% 38.8%

mSft (microsoft) 0.96% 30.0%

Deo (Diageo pLC) 0.72% 29.4%

DVn (Devon energy Corp.) 0.49% 30.7%

2. The second major event was the euro crisis flare-up and uS debt negotiations. although we

took some precautions before the debt negotiations failed by shifting out of some of our equity

exposure into long-dated treasuries, we spent most of the summer with significant beta (63%

equity, 21% fixed income and 16% real assets) exposure versus the benchmark (55%, 25% and

10%, respectively). as the “risk” market fell, we suffered due to this bias.

3. unfortunately, it was during this same time that we began the ill-timed transfer and lockup

of assets between Interactive brokers and Merlin Pb. our partial shift from equity to long dated

treasuries provided some cushion, but we were still unable to react aggressively to changing

market conditions. it was, however, during this time that our market and fixed income strategist,

Chad Cross and mario Castro, developed a robust macro and microeconomic framework for

thinking about the economic climate.

4. This perpetuated a decision to change our tactical allocations when trading on our portfolio

resumed at the end of September. We shifted to approximately 59% equity, 27% fixed income

and 14% real assets. We also went overweight what we thought were either cheap (information

technology) or defensive (healthcare, consumer staples, utilities) sectors. additionally, the greater

assets allocated to fixed were used to purchase high yield and emerging market debt. this aided

significantly in the fixed income portfolio’s outperformance.

5. At the end of November, after the october relief rally, the Euro zones debt issues came

front and center again. as we were entering winter break, and due to our long bias, we though it

smart to purchase some downside protection. our rolling portfolio beta had been approximately

1.2-1.3x; as we saw a fairly binary outcome in a short period of time – either the benchmark

would rally 10-15% or the euro crisis would take us substantially lower –we purchased about

1.4% of aUm in S&p puts. We also felt the timing appropriate because the ViX had come off

substantially since the summer months.

6. This binary scenario analysis, however, supposed a couple of critical points. first, the extent

of each scenario was not fully priced in the market; with where the ViX was, we believed it hadn’t

been. Second, that our portfolio would maintain the beta historically demonstrated; with the analysis

of tracking risk done by the analysts and our long risk bias, we felt comfortable that our estimates

would play out both on the up- and downside. in early January, the equity and high yield markets

rallied due to strong year-end earnings and macroeconomic readings. Unfortunately, our portfolio did

not follow, which lead to the second “drawdown” versus our benchmark returns. the poor earnings

of a few names (e.g. tesco, the hospitalist Company, arco Dorados) lead our portfolio to severely

underperform as our hedge, which was referencing our “unconditional” beta, expired worthless.

PerformanceOverviewcontinued

5 2011 / 2012 annUaL report

over the course of the year, the risk management team has vigilantly monitored our daily

historical vaR at the portfolio, asset class and sector level. over the course of the year, the

risk management team has vigilantly monitored our daily historical Var at the portfolio, asset class

and sector level. increasing the granularity of our approach has allowed us to provide guidance

to the portfolio and asset class mangers on the risk composition of our portfolio, adding risk as a

component in asset class and sector allocation decisions.

although we have generally maintained a higher level of risk than our

benchmark, approximately 120% of benchmark Var, we have remained

well within the limit of 150% of benchmark Var set forth in our ipS.

in addition to increasing the sophistication of our quantitative risk measures, we have taken strides in

process management in an effort to reduce our operational risk. the management team identified

a weakness in sector analyst awareness of the process used to request portfolio actions, and in response

we have formalized and made available procedures for submitting portfolio change requests to the

investment Committee and communicating the results of those requests to the class. as our sector

analysts take on a more active role within the fund, these processes should provide them the tools

necessary to effectively manage their responsibilities and improve overall fund performance.

the risk management team is pleased with the progress we have made over the year and look

forward to elevating the sophistication of our risk management processes in the coming fiscal year.

1 Year 3 Year

1 Month vaR 95% 97.50% 99% 95% 97.50% 99%

portfolio 7.55% 9.68% 13.10% 6.31% 8.36% 10.91%

Benchmark 6.01% 7.66% 11.31% 5.63% 6.99% 8.11%

Relative 125.50% 126.40% 115.80% 112.10% 119.60% 134.60%

Risk Management JaehoonPark,MichaelGloverandBenScully

our attribution analysis bears out this same “story.” as the asset class analysis shows, our overweight

equities and underweight fixed income, especially earlier in the year, was a contributor to our poor

returns versus the benchmark. this however, was self-corrected in the latter half of the year. Security

selection, especially due to the January year-end earnings drawdown as, was the single biggest

contributor to our poor performance. the special situations bucket represents our S&p insurance

that expired worthless. the equity portfolio specific sector attribution also illustrates the drawdown

due to security selection, but on a sector-by-sector basis. this correlates well with the sectors of the

individual securities which lost the largest amounts over the course of the year.

PerformanceOverviewcontinued

Equity Portfolio - Sector Attribution

n Allocation n Selection n Interaction

6.0%

4.0%

2.0%

0.0%

-2.0%

-4.0%

-6.0%

-8.0%

-10.0%

-12.0%Total Consumer

DiscretionaryConsumer Staples Energy Financials Health Care Industrials Information

TechnologyMaterials Telecom Utilities ETP

Attribution Analysis - Asset Class Level1.0%

0.5%

0.0%

-0.5%

-1.0%

-1.5%

-2.0%

-3.0%

Allocat

ion

Allocat

ion

Allocat

ion

Allocat

ion

Selec

tion T

otal

Selec

tion F

ixed I

ncom

e

Selec

tion T

otal

Selet

ion Re

al Asse

ts

Intera

ction

Intera

ction

Intera

ction

Intera

ction

Total

Sists

riSK management7 2011 / 2012 annUaL report 8

Highlights: A Year In Review

EquitiesEricLupton

in fY2011, our class spent the first couple of months weaning off much

of the etf exposure we carried throughout fY2010.

We gave sector analysts full authority to invest proceeds in individual securities and this

resulted in a much more concentrated equity portfolio. our long risk bias going into the summer

proved to hurt our performance in comparison to the benchmark. Due to conflicts with our broker, we

were unable to implement any trades for nearly two months and thus could not exit our losing trades.

in terms of sector allocation, our portfolio hovered closely around the benchmark weightings in energy,

consumer staples, and telecommunications. We were underweight financials, materials, and industrials

due to a long term trend of deleveraging we felt was changing the business model of many financial

institutions. We were overweight healthcare, information technology, and utilities. We felt confident that

cost reduction trends in healthcare would continue long into the future, and allocated funds in companies

with a proven track record at doing so. the fund also believed that under spending by corporations in

information technology would need to reverse, and thus we took a large position in microsoft. We

thought utilities were very attractive given their favorable valuation along with the strong dividend yields.

aSSet CLaSS highLightS

Region Breakdown - Total Equity Portfolio vs. Benchmark

n Portfolio n Benchmark

60%

50%

40%

30%

20%

10%

0%

$607,020

$276,848

$133,120

Domestic Developed Emerging

Consumer Discretionary/Consumer StaplesDaltonHsu

Performance in the consumers book has been twofold, results of which attributed mostly to

security selection. We had outperforming names such as Las Vegas Sands (LVS), up over 50% over

the year, making it the best performing stock in the fund; and mcDonald’s and Diageo, both of

which appreciated around 25%. on the flip side, Vivendi (ViV) and tesco (tSCo) were among

the worst performers in the fund, down 35% and 25%, respectively, due to the effects of woes

in europe and increasing affordable competition. Last month, we have closed a short position,

officemax, yielding 8% in a holding span of six months.

IndustrialsSiddarthBhat

The industrials sector maintained a neutral weight during the year. our main holdings were

ge, Lockheed martin, Siemens, all nippon airways. During 2011, the focus was on international

diversification of the industrials book and that led to positions in Siemens, all nippon airways

and asciano. however, with the financial crisis in europe lingering on and a slowdown in China we

moved our focus in 2012 to increasing our positions in US industrials and exiting overseas names.

the industrials portfolio outperformed the industrials SpDr etf (XLi) by 50 bps in april 2012.

UtilitiesChadCross

The utilities sector currently consists of Entergy (NYSE: ETR) and Enersis S.A. (NYSE: ENI).

Both holdings underperformed the Utilities Select SpDr benchmark (XLU), which was up for the year.

enersis finished in negative territory in 2011 largely due to drought conditions in Chile, where they oper-

ate hydroelectric plants. We expect a strong rebound for enersis in 2012 assuming weather patterns

return to normal. entergy finished slightly up for the year but faces headwinds in 2012 associated

with the mild winter in north america. Both enersis and entergy provide an attractive dividend.

EnergyChadCross

The energy sector followed a strong 2010 with another positive year in 2011. Super-majors

Chevron (nYSe: CVX) and exxonmobil (nYSe: Xom) were the top performers, benefitting from

rising oil prices. Devon (nYSe: DVn) and peabody (nYSe: BtU) underperformed, while Valero

(nYSe: VLo) and noble (nYSe: ne) were roughly in-line with the energy Select SpDr benchmark

(XLe). our positions in 2012 include the mLp’s Kinder morgan (nYSe: Kmp) and enterprise products

partners (nYSe: epD) as we anticipate significant infrastructure build out in america in order to

accommodate the abundance of shale gas resources.

9 2011 / 2012 annUaL report

Health Care RecapAlexVarner

Health care underperformed this year. as it is considered a defensive industry, this underperformance

is not a huge surprise with the economy appearing to gain positive momentum. our biggest holdings are

teVa pharmaceuticals and novartis ag. teVa represents our view of increased generic pharmaceutical

production as several blockbuster drugs are slated to come off of patent this year and rising medicare

and medicaid costs will push doctors to prescribe generics. nVS reflects our opinion that the health

care sector is trending towards consolidation, as it has multiple branches across eye care (alcon),

pharmaceuticals (Sandoz), and consumer health.

MaterialsSiddarthBhat

The materials sector maintained an under/neutral weight during the year. our main holdings

were Bhp, freeport mcmoran, allegheny technologies and Sigma aldrich. at the onset, we chose com-

panies that positioned us to have a portfolio similar to the materials SpDr etf (XLB). however, most of

these trades were put in before we left for the summer and most of our positions suffered a drawdown

of up to 25% in July due to financial market volatility. for most of 2011, we had been playing catch up

and since 2012 we have been tracking the XLB and even outperformed it by 90bps in april 2012.

IT/TelecomSharonLin

overweight IT/Telecom sector during the year delivered favorable rewards. Since inception, the

fund focused on names in software and semiconductor industries after excluding etf exposure. to protect

the downside, we selected stocks with the balanced advantage of solid growth and high yield, such as

microsoft (mSft), and tSmC (tSm), both providing capital gains of 15%+ so far. earlier this year, to well

into 2012, we added to Qualcomm (QCom), Spreadtrum (SprD) and ezchip (eZCh) by taking profits

(20%+) from intel (intC) and teradata (tDC) to reflect our cautious views on computing and enterprise

spending. though there are pullbacks from QCom and SprD recently, our optimistic tone on the field

of communicating remains intact. We also maintain the overweight on mSft for the big story of Win8

later this year. on the other hand, our name in telecom sector is Vodafone (VoD) after trimming China

telecom (827hK) due to the foreseeable profit deterioration.

highLightS: a Year in reVieW

FinancialsJungsangPyo

2011-12 has been a challenging year for the financial sector due to the European crisis. to coun-

teract such market change, we reduced financial sector exposure from 13.50% to 12.45%. Big financial

institutions, such as Bank of america (nYSe: BaC), goldman Sachs (nYSe: gS) and morgan Stanley (nYSe:

mS), were especially vulnerable because of their exposure to international financial market. on the other

hand, regional banks have done relatively well as can be seen in huntington Bancshares (naSDaQ: hBan,

16.3%) and US Bancorp (nYSe: USB, 12.0%). in the process of repositioning, we cut losses on Bank of

america (nYSe: BaC, 60.5%) and Chicago mercantile exchange (naSDaQ: Cme, 18.9%). We also added

itau Unibanco holding (BoVeSpa: itUB), a Brazilian diversified bank, to gain geographical diversification.

Fixed IncomeJaehoonPark

With high levels of volatility in the equity markets, nearly all fixed income sectors posted positive

returns in 2011. When we took over the fund, fixed income represented 24% of the net value of the

fund. the fixed income sector has outperformed its benchmark by 295 basis points. the primary drivers

of superior returns were safety and long maturities. higher quality government bonds outperformed

credit sensitive sectors; while returns on longer maturity bonds dwarfed those on short- and medium-

term bonds. the brightest spots for the year included long-term U.S. treasury (Barclays 20+ years) and

emerging market treasury (iShares Jpmorgan USD emerging markets) which earned 22% and 21%,

respectively. additionally, in our ongoing attempt to learn about different markets, we purchased

peruvian global treasury, which was undervalued in the middle end of curve.

Highlights:AYearinReviewcontinued

Fixed Income Performance

n Fixed Income n Benchmark

4/1/2011 4/1/20121/1/201210/1/20117/1/2011

112

110

108

106

104

102

100

98

11 2011 / 2012 annUaL report 12

Real Assets RobStekson

The past year set out various goals for the real assets book in order to align it more with

the needs of the Global Perspectives Fund. first, within the commodity book, all equity names

were removed, in favor of keeping only commodity specific etf’s and futures for the allocation. this

was done to remove any systematic risk that could adversely affect the performance. additionally,

within the reit space additional attention was paid to moving away from broader sector based etf’s,

and focusing on the best individual names within each sector.

in our commodity book, we maintained our highest overweight to the energy sector, despite a 7%

underweight in natural gas relative to the benchmark, one of the strongest performing allocations in

the book. our precious metals allocation was the second highest allocation, as we viewed currency

debasement, european macroeconomic concerns, and fear of additional monetary stimulus as favorable

to the book. fearing weakening economic data in various international markets, we maintained a heavy

overweight to the base metal sector, which was a rather poor performing sector. We maintained close

to an equal weight within the agriculture and livestock sector, and selectively over weighted com-

modities such as corn and soybeans, in which we saw favorable supply / demand dynamics occurring.

Despite suffering from liquidity concerns during the late summer and early fall of 2010, reit’s

delivered strong performance and attractive dividend yields to the fund. While for the most part

maintaining weightings close to the benchmark in various sectors, we maintained a heavy under-

weight to the retail sector, as disappointing data on consumer spending arose during the year.

Despite that, our allocation to Simon property group was a tremendous performer, and helped to

demonstrate our attention to focusing on best names in the space. additionally, american Campus

Communities had a strong year as their favorable collegiate rental property delivered strong returns to

shareholders. in the mortgage space, we added two harbors investment Corp, a hybrid agency and

non-agency reit that traded at a favorable discount upon purchase, and liquidated other names in

the sector that had strayed from their original investment rationale.

Special Situations RecapAlexVarner

We recently implemented two trades in the special situations book. We bought tyco international

because in December 2011, it announced it is going to break up into three public companies, aDt resi-

dential, flow Control, and Commercial fire & Security. We think that tyco is currently trading at a discount

to the sum of these parts and that we will see a convergence (the stock price will rise to meet the sum of

the parts valuation) as the beak-up date nears. We also implemented a bull call spread to capitalize on the

binary outcome of Diamond foods stock. Despite recent negative events, the stock remains fundamentally

attractive because it owns a portfolio of valuable brands. the trade allows us to participate in the upside

potential of the stock but also limits losses to $3.30 in the unlikely case of liquidation or bankruptcy.

Highlights:AYearinReviewcontinued

International Market OutlookRobFrear

over the last year we have seen several forces inflect fear and thus volatility into global markets fur-

ther propelling the flight to quality. Looking ahead we see both areas of opportunity and threats globally.

the eurozone continues to prop up markets with monetary injections to address fiscal policy concerns and

fend off a deep recession. the effect of these efforts had some success within the last year but will need

to be on a much larger scale if Spain and italy end up following in the footsteps of greece. We remain

cautious of the situation developing in the eurozone. We are forecasting a mild recession in the region

as the result of significant austerity. We are also closely monitoring Spanish and italian bond yields as a

measure of the potential depth of the recession and key indicator of fear in european markets in general.

While growth in emerging markets has slowed from historically high levels specifically in BriC countries

(Brazil, russia, india, China) we are forecasting significant growth to continue in these regions over

a near term horizon primarily fueled by intra-country expansion. for our fixed income holdings we

believe this represents an opportunity to capture yield. We also are looking to increase our exposure

to emerging market equities in this environment. this move is futher supported by relative valuations.

on a price-to-earnings basis, spreads relative to develop countries have closed from a year ago making

investing in emerging market equity that much more compelling. as a result of both of these effects

we are targeting overweight emerging market positions in both fixed income and equities.

Macroeconomic Outlook

maCroeConomiC oUtLooK 14

Consumer Discretionary/Staples:GrahamSavage

With Consumer Discretionary stocks trading at nearly 18x

trailing earnings and near the valuation highs over the last year,

the market has clearly come around to the view that consumers

are opening up their wallets again. however, there are still select

opportunities available within the discretionary space, both in terms

of growth and value stocks. Some industries that bear watching are

homebuilders, which have benefited from talk of a housing recovery,

and education companies, which have experienced significant down-

drafts over the last year due to ongoing regulatory concerns. going

forward, i expect to increase exposure in the fund to stocks in these

areas only insofar as i believe there are valuation opportunities that do

not depend on any particular macroeconomic scenario coming true.

on the other side of the coin, Consumer Staples

are also trading at a relatively rich valuation –

nearly 17x trailing earnings – the highest levels

of the last year. this dynamic of Staples and

Discretionary stocks both showing valuation

strength indicates to me that investors are

becoming more willing to take on risk in the

Discretionary space, but are not yet ready to

give up on defensive Staples holdings in spite

of strong price momentum.

again, the focus from a portfolio standpoint will be on eliminating

Staples positions that are fully valued and finding opportunities

that are more attractive. i expect to keep a core position in procter &

gamble, and to build opportunistically around it. the portfolio will

ideally trade less as a beta play on the overall market and more as

a diversified set of undervalued positions.

Domestic Strategy OutlookRobFrear

We believe the outlook in the US has several clear trends that we expect to continue through the next

year. We are taking on tactical positions in the portfolio to capitalize on several of these themes:

n Private investment growth: Corporate balance sheets are riddled with cash. the feD has taken a dovish

monetary policy, keeping rates low through 2014. We believe the actions of the feD reduces risk for corpo-

rations in two ways. first, through defined low interest rates on capital projects. Second, through reducing

uncertainty about the feDs actions in the future by increasing visibility to the thought process. We believe

that both of these actions provide an accommodative environment for strong private investment in the

US economy. to capitalize on this trend we are increasing exposure in the business-to-business segment.

n Government spending decline: the US fiscal deficit remains near all-time highs. given that 2012

is an election year, we anticipate little to no consolidated effort from Washington to address the fiscal

concerns in the near term. however, we also expect in early 2013 there will be significant pressure to

reduce government expenditures and get the national budget in line. thus we are looking to reduce

exposure in securities heavily reliant on government contracts and support.

n Moderate consumer participation: We anticipate moderate growth within the consumer spending

segment. We believe this will be primarily due to some mild improvements in unemployment over the

next year. in the short term, we our monitoring consumer expenditures by various product categories

(from the low-end to the high-end) as an indicator of the financial health and physiology of consumers.

While we have conviction in our views, market dynamics are fluid. We are committed to closely

monitoring both international and domestic market drivers over the coming year and will make

adjustments where necessary.

Sector Outlooks

Equities OutlookAdamSues

the ongoing sovereign debt crisis in Europe and potential

slowdown in China will likely contribute to further volatility in the

global equity markets. the U.S. stock market started 2012 with a

sustained rally, driven by the expansion of corporate profit margins

to an all-time high. this market optimism has continued despite

a sluggish recovery in the U.S. labor market, as millions of workers

struggle to find work. market valuations, especially in the domestic

market, appear stretched when compared to long-term averages,

making it even more important to understand potential downside

levels. as a 2013 class, we will move towards greater diversification

across market capitalizations and styles, while allocating capital to

our best ideas. historically, periods of such uncertainty have provided

opportunities, and we continue to believe that stocks will outperform

fixed income on a risk-adjusted basis over the next several years.

TelecomShuaiqiGu

We expect to see a fast-growing demand for 3G/smartphone

in the emerging markets. though the promotions would hurt

profitability to certain extent, the upside revenue potential for the

telecom operators by tapping into the 3g/smartphone market is

extremely high. thus, we would cherry-pick some with better risk/

reward profiles for our portfolio. in addition, we will look into carrier

names with substantial spectrum control and strong 4g positioning

in the US and european markets.

MacroeconomicOutlookcontinued

SeCtor oUtLooKS 16

SeCtor oUtLooKS

EnergySidharthBhagavatula

We remain bullish on energy and continue to be overweight

in MLPs. Being overweight in mLps reduces our direct exposure

to fluctuating commodity prices. We are positive about the

upstream e&p plays, which have reported strong profits in the

last quarter and expected to perform over the next 12 months

supported by strong oil prices. We plan to increase our allocation

to upstream plays in the future. We also see a lot of growth po-

tential in the services and equipment sector with most of the e&p

companies ramping up their capital expenditures. going forward

we expect oil prices increase based on geopolitical tensions and

strong demand from Japan and emerging economies. natural

gas prices are expected to be low however companies halting

production will provide some price support. We have a number

of names in each of these sectors, which we continuously keep

track of. We are closely monitoring the alternate energy space

but currently remain bearish on the sector. We believe that most

of the stocks in this sector are over-valued and have too much

dependence on government subsidies.

Materials SectorToddCobb

Mining and basic materials have bearish indicators through the

rest of this year while chemicals have a more bullish outlook.

many miners have revised estimates downward due to falling

prices and social unrest in regions of the world with large reserves,

such as South africa and indonesia. the chemical industry has a

more bearish outlook thanks to growing demand for chemicals in

fracking, record low natural gas prices, and consistent demand.

Both industries are vulnerable to an economic problems in China,

the US, and europe. pulp and paper companies look bullish for the

rest of this year as prices begin to recover from lows earlier this

year and inventories begin to decrease.

Information TechnologyShuaiqiGu

In 2012, the semiconductor industry is expected to experience

a recovery thanks to the increased demand from the end market.

Strong growths in communicating and mobile computing could

lead to better than expected sales in low-power computing and

3g/4g communication iCs and flash memory chips for solid-state

drive (SSD). We are also optimistic on the growth in the software

and internet service industry based on our view of stellar enterprise

spending on networking and database storage. Despite the

concerns on valuation, we intend to partially shift our spotlight

to some cloud-computing names this year to ride the wave of

internet-based/social media boom by using the long/short strategy.

UtilitiesApurvaGoel

The utilities sector is expected to remain under pressure in the

short term. from a purely valuation perspective the sector looks

expensive as compared to its historical averages and S&p 500 but

dividend yields remain on the higher side.

there is some uncertainty in the electrical utilities regarding the

extension of deadlines of implementation of the epa rules and the

industry is well under way to close or convert significant amount

of coal based power generation capacity in the next few years

even as the overall capacity continues to grow. the capital heavy

investment required for conversion is forcing companies to look

closely at the cost-benefit analysis. even in the face of these head

winds, there are several positive trends for the industry. perhaps

the most visible of which is that the lower price of natural gas is

expected to prevail for some period and this will help keep power

generation prices contained. if the recent pickup in industrial

production holds it will boost demand from the industrial sector

which will help the bottom line. the low cost of debt is also helping

utility companies with several raising capital at extremely low yields.

overall the fund will do well to tread this sector carefully.

Healthcare SectorWilliamMills

uncertainty surrounds the healthcare sector in 2012. the pend-

ing Supreme Court decision regarding mandating health coverage,

the looming presidential election, and continually rising costs make

the healthcare industry a challenging environment at the moment.

however, there are opportunities in the sector and companies that

can help reduce costs stand to profit. these potentially include medical

device makers and it systems companies that improve efficiencies.

We also believe that further consolidation in the healthcare space is

likely as strong companies look to grow and increase market share.

this is essential for many facility providers as utilization has declined

while costs have continued to rise. We will also monitor managed

healthcare and insurance companies as they stand to be affected

by the Supreme Court’s decision. We believe that the uncertainty

surrounding this verdict has depressed valuations and increased

volatility in the sector and that there is the potential for a rebound

in the valuations of strong companies once there is a resolution.

IndustrialToddCobb

The uS industrial sector shows bullish signs of strength and

recovery through the rest of this year while the global outlook

is less certain. US auto-sales and consumer spending have helped

drive growth through the first part of this year, and may continue if

the US economy continues to show signs of growth and improving

employment figures. risks in the US come from unstable commodity

prices and a cooling or reversal of the positive trends in employment

observed earlier this year. the impending US elections and seques-

tration at the end of 2012 could also have a strong impact on the

industrial sector, especially for defense industries. globally, the recession

in europe and slowing economic growth in China create a drag for

demand in emerging economies, slowing industrial sector growth

for the near term internationally.

SectorOutlookscontinued

17 2011 / 2012 annUaL report 18

FinancialsAlexandraNormile

In the first half of April, we liquidated our Goldman Sachs hold-

ing in order to profit from increased price, and to decrease our

concentration in Diversified financials. as bulge banks face continued

slow going in investment Banking, we see asset management and

Wealth management as areas of continued growth into the future.

We are considering adding holdings in firms that specialize in asset

management and Wealth management.

We are also watching our international holding and the economic

factors in Brazil. government-mandated lower interest rates are

putting pressure on bank profits, but we could be seeing a bottom-

ing out of stock prices. equities under consideration for purchase in

the fall include international stocks and regional banks.

Fixed IncomeBillSchramm

The uncertainty in the global financial markets and the slow

growth rate of the uS economy continue to be the primary

drivers of our fixed-income outlook. the federal reserve intends

to leave rates stable as long as inflation remains in check, with no

rate hikes expected till 2014. We also expect the slowly recovering

US economy to grow at about 2% over the next few years due to

high unemployment and cautious consumer sentiment.

it is difficult to predict the timing of a reversal in the flight to quality,

but investors will likely continue to hold quality assets over the next

few quarters due to the sovereign debt situation in europe. While

additional dollars may shift into treasuries as developments in europe

surface, it is hard to imagine a scenario where the US treasury market

experiences a significant, sustained rally, given the current low interest

rate levels. on the other hand, a rally in US treasuries is possible if

countries like Spain and italy are unable to resolve their financial

problems, and we experience another global flight to quality.

SectorOutlookscontinued

Commodities: We continue to be bullish on precious metals as

gold is primarily driven by US monetary policy rather than pure

fundamentals. Base metals will face a difficult environment over

the next year as Chinese growth and a US recovery challenge the

substantial inventory build, which will likely cap the gains. We are

neutral on energy as a result of a lack of conviction. high prices

that have been supported by supply outages and geopolitical

concerns are likely to slow demand. it appears that the upside is

limited from the current levels and most of the risks are skewed

to the downside. We are neutral to bullish on livestock. Lean hogs

will outperform cattle as a result of the current price spread causing

trade-down demand from beef to pork. a reduction in supply is

bullish for cattle, but poor feeding margins and slowing slaughter

rates may pressure demand.

Special SituationsMichelePanzeri

The coming year will provide exciting opportunities for the

Special Situations book. our strategy is to identify trades that have

a clear short-term catalyst, low correlation with the macro picture and

a high probability of success with calculated downside risk.

We will focus heavily on corporate actions such as spinoffs and break-

ups because these are great channels for companies to unlock share-

holder value. this year, there are about 20-25 spinoffs in the pipeline

and we think 4-5 are attractive investment opportunities.

not only we want to invest in companies before and after the

actual spinoff, but also identify conglomerates that can potentially

disinvest a subsidiary in the near term as these opportunities will

provide the greatest alpha.

the last two areas of focus are pair trades and capital structure

arbitrage trade (if liquidity on the fixed income side permits).

as the underlying drivers of our fixed income outlook remain

uncertain, we plan to stay close to our benchmark targets over

the next year, while employing several tactical allocations. We will

continue to under allocate our holdings in europe, as we feel there

is more downside risk than opportunity at this time. Despite the

historically tight credit spreads in US investment grade and high yield

bonds, which initially tightened as a result of investors seeking yield

in a low interest rate environment, we believe there is opportunity

for further spread tightening in good companies that continue to

improve their financial strength and credit profiles. While emerging

market debt can provide a high current yield, and there is potential

for currency appreciation and spread tightening in an improving

global economy scenario, we are cautious in the international

fixed income space, given the uncertainty in the global economy.

Real AssetsAdamWiklund

REITS: most of the major commercial real estate sectors are see-

ing improved fundamentals. Sustained job creation is benefiting

commercial real estate sectors by increasing demand for space.

nar’s chief economist said, “Vacancy rates

are steadily falling. Leasing is on the rise and

rents are showing signs of strengthening,

especially in the apartment market where

rents are rising the fastest.”

nar forecasts commercial vacancy rates over the next year to decline

0.4 percentage points in the office sector, 0.8 point in industrial real

estate, 0.9 point in the retail sector and 0.2 percentage points in

the multifamily rental market. Construction activity is still low, with

95 percent of experts reporting it is below normal, and 83 percent

said it is a buyers’ market for development acquisitions; prices are

below construction costs in 78 percent of markets.

SeCtor oUtLooKS19 2011 / 2012 annUaL report 20

Name Market value %Class %Fund

uS Equity

allegheny tech $ 11,239 1.10% 0.64%

Coventry health $ 35,570 3.47% 2.04%

Chevron Corp $ 28,411 2.77% 1.63%

enterpriSe proDUCtS partnerS $ 15,141 1.48% 0.87%

entergY Corp $ 23,117 2.26% 1.33%

freeport-mcmoran Copper $ 24,916 2.43% 1.43%

general electric $ 29,242 2.86% 1.68%

goLDman SaChS groUp inC $ 27,735 2.71% 1.59%

hUntington BanCShareS inC $ 28,429 2.78% 1.63%

Jp morgan Chase $ 30,669 2.99% 1.76%

Kinder morgan partners $ 32,521 3.18% 1.86%

Lockheed martin $ 13,479 1.32% 0.77%

LaS VegaS SanDS Corp $ 42,084 4.11% 2.41%

maSimo Corporation $ 20,761 2.03% 1.19%

mCDonaLD’S Corp $ 18,541 1.81% 1.06%

morgan Stanley $ 15,712 1.53% 0.90%

miCroSoft Corp $ 44,770 4.37% 2.57%

noBLe Corp $ 31,775 3.10% 1.82%

office max $ (11,440) (1.12%) (0.66%)

oraCLe Corp $ 23,765 2.32% 1.36%

proCter & gamBLe Co/the $ 33,605 3.28% 1.93%

prudential financial $ 26,243 2.56% 1.50%

QUaLComm inC $ 33,145 3.24% 1.90%

Sigma-aldrich $ 16,073 1.57% 0.92%

exxon mobile Corp $ 10,147 0.99% 0.58%

Total - u.S. Equity $ 605,650 59.14% 34.05%

Foreign Equity

all nippon airway (ana) $ 22,711 2.22% 1.30%

asciano Ltd. $ 25,381 2.48% 1.46%

Bhp Billiton - aDr $ 22,589 2.21% 1.30%

Diageo pLC-SponSoreD aDr $ 45,645 4.46% 2.62%

eZChip SemiConDUCtor LtD $ 8,883 0.87% 0.51%

novartis ag-aDr $ 34,687 3.39% 1.99%

teva pharmaceuticals $ 39,157 3.82% 2.25%

tesco $ 26,168 2.56% 1.50%

ViVenDi $ 16,492 1.61% 0.95%

VoDafone groUp pLC-Sp aDr $ 35,971 3.51% 2.06%

Total - Foreign Equity $ 277,682 27.11% 15.61%

Name Market value %Class %Fund

Emerging Markets

arco Dorados holdings $ 20,695 2.02% 1.19%

enerSiS S.a. -SponS aDr $ 29,538 2.88% 1.69%

itaU UniBanCo hLDng-pref aDr $ 34,081 3.33% 1.95%

SpreaDtrUm CommUniCati-aDr $ 22,836 2.23% 1.31%

taiwan Semiconductor aDr $ 33,616 3.28% 1.93%

Total - Emerging Markets $ 140,766 13.75% 7.91%

Total Equity $ 1,024,099 57.58%

uS Fixed Income

iShares Barclays intermediate Credit Bond $ 50,071 16.66% 2.87%

iShares Lehman 1-3 Year Credit Bond $ 75,665 25.18% 4.34%

iShares iBoxx $ high Yield Corporate Bond fund $ 99,337 33.05% 5.70%

iShares trust Lehman mBS fixed-rate Bond $ 55,055 18.32% 3.16%

teSoro Corp $ 20,394 6.79% 1.17%

Total - u.S. Fixed Income $ 300,521 70.88% 16.90%

Foreign Fixed Income

peru 8 3/8 5/16 Soverign $ 29,910 9.95% 1.72%

iShares Jpmorgan USD emerging markets Bond fund $ 93,549 31.13% 5.36%

Total - Foreign Fixed Income $ 123,459 29.12% 6.94%

Total - Fixed Income $ 423,980 23.84%

Commodities

mini Corn fUtUre may12 na na na

mini SoYBean fUt may12 na na na

Wheat fUtUre(CBt) may12 na na na

SpDr goLD trUSt $ 19,454 7.51% 1.12%

poWerShareS DB agriCULtUre f $ 15,877 6.13% 0.91%

poWerShareS DB BaSe metaLS f $ 4,822 1.86% 0.28%

poWerShareS DB energY fUnD $ 46,728 18.04% 2.68%

ipath DJ-UBS Copper SUBinDX $ 11,531 4.45% 0.66%

etfS phYSiCaL paLLaDiUm Shar $ 2,579 1.00% 0.15%

etfS SoYBeanS oiL $ 4,030 1.56% 0.23%

UniteD StateS oiL fUnD Lp $ 7,061 2.73% 0.40%

Total - Commodities $ 112,082 6.30%

Appendix

Portfolio Holdings (As of 3/31/2012)

portfoLio hoLDingS21 2011 / 2012 annUaL report 22

2011-2012 BioS

Name Market value %Class %Fund

REITs

ameriCan CampUS CommUnitieS $ 9,168 3.54% 0.53%

Dupont fabros technology inc. $ 16,382 6.32% 0.94%

iShareS ftSe nareit reaL eSt $ 7,636 2.95% 0.44%

iShares ftSe nareit industrial/office index fund $ 24,442 9.44% 1.40%

hCp inC $ 10,654 4.11% 0.61%

annaLY CapitaL management in $ 4,746 0.46% 0.27%

peBBLeBrooK hoteL trUSt $ 11,290 4.36% 0.65%

iShares ftSe nareit residential index fund $ 26,918 10.39% 1.54%

rayonier inc. $ 9,259 3.57% 0.53%

iShareS SiLVer trUSt $ 3,138 1.21% 0.18%

Simon propertY groUp inC $ 14,568 5.62% 0.84%

two harbors $ 8,720 3.37% 0.50%

Total - REITs $ 146,920 8.26%

Total - Real Assets $ 259,003 14.56%

Special Situations

tyco $ 34,832 13.45% 2.00%

January 13 Calls on DmnD US $ 4,340 1.68% 0.25%

January 13 Calls on DmnD US $ (1,540) (0.59%) (0.09%)

Total - Spec Sits $ 37,632 2.12%

Cash & Equivalents

Cash, accrued interest and Dividends $ 33,989 100.00% 1.91%

Total Cash & Equiv $ 33,989 1.91%

Fund Total $ 1,778,702 100.00%

Front row (left to right): Alexander Arapoglou, Jaehoon Park, Michael Glover, Sharon Lin, Mario Castro, Jungsang Pyo, Mustafa Gültekin

Back Row (left to right): Peter Panos, Michael Ives, Dalton Hsu, Siddarth Bhat, Gregory Brown, Preetesh Kantak, Chip Snively

Not Pictured: Chad Cross, Paul Chhoy, Eric Lupton, Rob Stekson, Alex Varner

Applied Investment Management

2011-2012 Bios

Chad CrossUndergraduate Degree: University of Virginia, B.A. Economics; Prior

Experience: Sr. Investment Analyst, Cambridge Associates - Arlington, VA;

Summer 2011: Associate, Private Wealth Management, Goldman, Sachs & Co.;

Post-Graduation: Financial Analyst, ExxonMobil – Houston, TX

Paul ChhoyUndergraduate Degree: Fordham University - Business Administration;

Prior Experience: Trader’s Assistant, Morgan Stanley - New York, New York;

Summer 2011: American Express - Finance Group; Post-Graduation:

Senior Consultant, Ernst & Young - Charlotte, NC

Siddarth BhatUndergraduate Degree: University of Pune - Engineering in Electronics &

Telecommunication; Prior Experience: Project Manager, OTB Solar, New

Delhi, India; Summer 2011: Associate, Sales & Trading, Citibank - London, UK;

Post-Graduation: Associate, Fixed Income Sales, Citibank - London, UK

Mario CastroUndergraduate Degree: Universidad de los Andes – Economics (Bogota,

Colombia); Prior Experience: Macroeconomic Analyst – National Association

of Financial Institutions (Bogota, Colombia); Summer 2011: Nomura Securities –

Latin America Strategy Group; Post-Graduation: Nomura Securities – Latin

America Strategy Group

23 2011 / 2012 annUaL report 24

Grier BuchananUndergraduate Degree: Vanderbilt University, B.A., Economics;

Prior Experience: Financial Analyst, JBG Rosenfeld Retail – Chevy Chase, MD;

Summer 2012: Intern, Portfolio Management – Hatteras Funds – Raleigh, NC

Todd CobbUndergraduate Degree: Duke University, BSE in Environmental Engineering;

Prior Experience: One year civil engineering and three years IT sales experience,

Raleigh, NC; Summer 2012: Commercial Leadership Development Program,

Eastman Chemical, TN

Richard AndersonUndergraduate Degree: Virginia Tech, Industrial and Systems Engineering;

Prior Experience: Management Consulting, Grant Thornton LLP;

Summer 2012: Commercial Banking, Wells Fargo

Sidharth Bhagavatula

Undergraduate Degree: NIT Warangal – Bachelor of Technology;

Electronics Engineering & Prior Experience: Application Developer,

Oracle Corporation; Summer 2012: Product Strategy, Amazon

2012-2013 BioS

Sharon LinUndergraduate Degree: National Cheng Chi University - Finance;

Prior Experience: Sell-Side Equity Research, Yuanta Securities - Taipei,

Taiwan; Post-Graduation: Treasury; Taiwan Semiconductor Manufacturing

Company - Hsinchu, Taiwan

Eric LuptonUndergraduate Degree: Union college, B.S. Economics;

Prior Experience: Equity research analyst, Chilton Investment Company;

Summer 2011: toys r’ us, corporate finance

Jaehoon ParkUndergraduate Degree: Pohang Univ. of Science & Technology, B.S. in

Material Science & Eng; Prior Experience: Senior Analyst, KIS Pricing, Inc.

(Moody’s Korea) - Seoul, Korea; Summer 2011: Research Analyst, Samsung

Securities - Seoul, Korea; Post-Graduation: Associate, Product Management

Division, KB Kookmin Bank - Seoul, Korea

Jungsang PyoUndergraduate Degree: Pohang Univ. of Science & Technology;

Prior Experience: Project Manager, Mando Corp - Wonju, Korea;

Summer 2011: Sales & Distribution Intern, Citibank Korea - Seoul, Korea

Rob Stekson, CAIAUndergraduate Degree: Drew University, B.A. Economics.; Prior

Experience: Institutional Sales and Marketing, New York Life Investments,

New York, NY; Summer 2011: Hedge Fund of Funds, Franklin Street Partners,

Chapel Hill, NC; Post-Graduation: TBD

Michael GloverUndergraduate Degree: North Carolina State University, B.S., Computer

Science; Prior Experience: Application Designer, CSC – Raleigh, NC;

Summer 2011: Analyst, Morehead Capital Management, LLC – Raleigh, NC;

Post-Graduation: TBD

Dalton HsuUndergraduate Degree: National Chung Cheng University, Business

Administration; Prior Experience: Prudential Financial; Summer 2011:

Morgan Creek, Chapel Hill; Post-Graduation: TBD

Michael Ives, CFA, CPAUndergraduate Degree: Duke University, B.A., Economics;

Prior Experience: Manager, PricewaterhouseCoopers LLP – Charlotte, NC;

Summer 2011: Equity Research, Credit Suisse – New York, NY;

Post-Graduation: VP of Finance, Prometheus Group – Raleigh, NC

Preetesh Kantak, CFAUndergraduate Degree: Princeton University, B.S.E Chemical Engineering

& Engineering Biology; Prior Experience: Convertible bond and option

portfolio manager, Platinum Grove Asset Management, Rye Brook, NY;

Summer 2011: Volatility Research Specialist, Silverback Asset Management,

Chapel Hill, NC; Post-Graduation: Ph.D. Finance, UNC

Alex VarnerUndergraduate Degree: Davidson College, French; Prior Experience:

Operations Associate, Lateef Investment Management, Larkspur, CA;

Summer 2011: Research Analyst, Main Management, San Francisco, CA;

Post-Graduation: Research Analyst, Main Management, San Francisco, CA

2011-2012Bioscontinued

Applied Investment Management

2012-2013 Bios

Front row (left to right): Alexander Arapoglou, Sidharth Bhagavatula, Adam Sues, Adam Wiklund, Josh Wilkes, Richard Anderson, William Mills, Graham Savage, Mustafa Gültekin

Back Row (left to right): Gregory Brown, Peter Panos, Scott Simonton, Ben Scully, Michele Panzeri, Grier Buchanan, Rob Frear III, Bill Schramm, Chip Snively

Not Pictured: Todd Cobb, Apurva Goel, Shuaiqi Gu, Alexandra Normile

25 2011 / 2012 annUaL report 26

Robert Frear IIIUndergraduate Degree: Michigan State University, B.S. Applied Engineering

Sciences; Prior Experience: Senior Strategy & Transformation Consultant,

IBM Global Business Services - Charlotte, NC; Summer 2012: Associate,

Private Wealth Management, Goldman, Sachs & Co - Chicago, IL

Apurva GoelUndergraduate Degree: University of Mumbai, B.E. Computer Engineering;

Prior Experience: Financial Modeling, Front office Systems, Wachovia

Securities, Charlotte, NC; Summer 2012: E&Y- Financial Services Office,

Risk Management, Charlotte, NC ;

Shuaiqi GuUndergraduate Degree: East China Normal University, B.S. Electrical

Engineering.; Graduate Degree: University of Wisconsin - Madison, M.S.

Electrical Engineering.; Prior Experience: Manager, Research and Development

Department, AMD inc., Sunnyvale, CA; Summer 2012: Summer associate,

Investment Banking Department, Bank of China, Hong Kong.

William Mills, CFAUndergraduate Degree: Washington and Lee University – Business Admin-

istration/Accounting and American History; Prior Experience: Agency MBS

Assistant Portfolio Manager and Trader, AIG Asset Management Group - New York,

NY; Summer 2012: Private Equity Summer Intern, Ridgemont Equity Partners

Alexandra NormileUndergraduate Degree: University of Virginia – Music and International

Relations; Prior Experience: Program Analyst, STG International Dept. of

Homeland Security contract; Summer 2012: Eton Advisors, Chapel Hill

Michele Panzeri, CFAUndergraduate Degree: Tennessee Technological University – Finance;

Prior Experience: Sales & Trading, Banca IMI Securities – New York, NY;

Wealth Management, Citi Smith Barney – New York, NY; Summer 2012:

Equity Research, TIAA-CREF, Charlotte

Graham SavageUndergraduate Degree: College of William and Mary, BA, Music

and American Studies; Prior Experience: Associate Analyst & Market

Intelligence, Legg Mason Capital Management; Summer 2012: Piedmont

Community Bank Holdings, Raleigh, NC

Bill SchrammUndergraduate Degree: St. Cloud State University, B.S. Finance, B.A.

Economics; Prior Experience: Fixed Income Analyst, RBC Global Asset

Management, (US) Inc. - Minneapolis, MN; Summer 2012: Summer Intern,

FX Desk, Ford Motor Co. - Detroit, Michigan

Scott SimontonUndergraduate Degree: University of North Carolina at Chapel Hill, BA

Journalism & Mass Communication; Prior Experience: Trader/Analyst,

BlackHawk Capital Management, Charlotte, NC; Summer 2012: Barclays

Capital – Sales & Trading Summer Associate

Ben ScullyUndergraduate Degree: Cornell University, B.S. Operations Research

Engineering.; Prior Experience: Project Manager for enterprise wide

implementation of cloud-based workflow management system at American

International Group (AIG). New York, NY; Summer 2012: Market Research

for Proprietary Trading Firm, Trillium Trading. New York, NY

Adam SuesUndergraduate Degree: Mount Union College, BA in Business Administration;

Prior Experience: Business Analyst, rPath, Raleigh, NC; Summer 2012:

Equity Research, Fidelity Investments, Boston, MA

Adam Wiklund, CFAUndergraduate Degree: University of Wisconsin-Madison - Finance, Investments,

and Banking and Management and Human Resources; Prior Experience:

Investment Analyst, Wisconsin Alumni Research Foundation; Summer 2012:

Morgan Creek Capital Management

Josh WilkesUndergraduate Degree: UNC Chapel Hill, B.S. Psychology; Prior

Experience: Retirement Consultant, Lincoln Financial Group – Charlotte, NC;

Summer 2012: Associate, Institutional Clients Group, Citi – New York, NY;

2012-2013Bioscontinued

27 2011 / 2012 annUaL report