Overview

The Portfolio Management Club is a group of dedicated undergraduate students at Baruch College that
manages a simulated portfolio fund consisting of companies with a market capitalization between $400
million and $1 billion. The goal of the fund is to outperform the Russell 2000 Small Cap index in a risk
adjusted manner. The club objective is to provide a learning environment where students can obtain technical
skills in portfolio management and security analysis. These skills are gained through constructing research
reports that will be presented to members of the club.

Mission

Our mission is to provide a learning environment for club members where they can obtain valuable
knowledge in portfolio management and equity valuation. It is our goal to produce top quality research
reports that are at a professional level. The Portfolio Management Club strongly emphasizes on members
been active by pitching stock ideas and constructing research reports. Not only do we want our members to
learn these skills, but encourage them to share it with others. Hence, creating an environment that fosters
friendships and positive experiences that students can relate to beyond their college years.

Benefits

The officers of the Portfolio Management Club will conduct workshops for students interested in joining the
club. Our training will focus on different valuation methods such as; PEG Ratio, Comparable Analysis,
Technical Analysis, and Industry Research. The majority of our officers have industry experience in the
different areas of banking. Active members should expect to gain knowledge in the following areas:

• Equity Research Report
• Financial Modeling
• Company Valuation
• Industry Analysis
• Presentation Skills
• Portfolio Management

Simulated Portfolio

As of 12/20/06, PMC is managing $1,000,000 in simulated funds through Marketocracy. As stated earlier,
our goal is to outperform the Russell 2000 Small Cap Index. This will be accomplished by maintaining a
strict buy and sell discipline criteria. Our decisions are based on attractive P/E relative to industry, current P/E
at a discount to absolute earnings growth and financial strength. Our purchasing criteria will be based on
exceptional management, distinct and sustainable competitive advantage, and consistent growth. Through our
discipline criteria we will be able to discover opportunities, and transform them into strategic investments.