To be a world-class finance organization as a student-managed investment fund and to develop outstanding professionals in different fields of business and finance.
WHY WE EXIST?
BVI was founded by a group of passionate value investors who wanted to create a platform for like-minded individuals to better understand value investing through understanding the fundamentals of businesses. Through managing a real-money fund, we want to equip our members with the core investing skills that would be useful for life.
Through the Bruin Investment Fund, we are able to track our performance and gauge the merit of our ideas. With a strong emphasis on value, we are committed to finding opportunities that Wall Street has overlooked. We are very selective, and from the hundreds of companies that we've analyzed thus far, only few have been voted into the Fund. Our members share a deep interest for investing, and we hope to continue outperforming the market while developing a strong investment culture at UCLA.
We pride ourselves on being a small group with an open and inclusive culture. That means that junior members in the organization can and are encouraged to reach out to older members and alumni to chat about investing, career paths, working experiences. Dedicated to increasing our member’s knowledge about the financial industry, we also pair junior and senior members as mentor-mentees. Mentors help guide junior members through the process of finding good investment ideas, the fundamentals of qualitative and quantitative company analysis, and teach them how to produce quality stock pitches.
Support.com (NASDAQ: SPRT), is a technology company founded around the time of the tech bubble boom, which is primarily involved in the business of providing domestic tech support services. Support.com was pitched at a price of ~$2.08 per share. After many years of negative bottom line profitability, the once $1.8 billion market cap company is now trading at $40 million in market capitalization. The company has $0 in debt and $55 million in working capital, but is burning cash with -$17 million in net income in the last fiscal year. After much research, speaking to a company representative, and consolidating all of our findings, we realized that the company’s 3 segments are on a conservative basis worth $44 million, and assuming some cash burn, we assumed that the working capital distributable to shareholders is worth another $33 million, giving us a implied value of $77 million (a near 100% upside). Our valuation was meaningless without some kind of a catalyst on a company that has the potential for profitability but continues to burn cash. This catalyst came in the form of a recent proxy war, which in mid-2016 put the company in the hands of a group of activists who overturned the board and appointed their own interim-CEO. We think the company’s trading price will adjust towards the real value of this company in 2017 as the efforts of the activists show signs of fruition.
DeVry University (NYSE: DV), a for-profit university, was pitched at a stock price of $22.66. The company had been suffering after reaching dropping from its high price of $48.87 at the end of 2014. With the government looking to increase regulation against companies in the sector, many investors selling their shares out of fear. However, DeVry University, the company’s legacy business which had been suffering from rapidly decreasing revenue and negative earnings, was generating only a quarter of the company’s total revenue. DeVry had successfully made multiple acquisitions over the past decade to expand into other segments of the education system that were immune to additional U.S. regulation. This included Becker Professional Education, several medical schools located throughout the Caribbean, and multiple schools located in Brazil, a rapidly growing market that relies heavily on private education. These business segments were growing rapidly and would soon overcome the revenue losses from DeVry’s legacy business. Furthermore, Charles de Vaulx, a portfolio manager at International Value Advisors, had established a 15% stake in DeVry and was working with the management team to unlock value within the company. These factors combined to make DeVry an excellent value investment, without the risk of additional government regulation.
Trinity Industries (NYSE: TRN), a diversified industrials conglomerate with a 40% market share within the rail car manufacturing industry, was pitched at the price of $18.11. The company’s stock price had tumbled from a high of $50.30 as the rail car industry began to slow down. Wall Street, afraid of the rail car industry’s cyclicality, predicted an impending downturn in the sector, causing Trinity’s share price to drop over 60% in the past 18 months. However, Trinity Industries was well equipped to handle this downturn, having diversified approximately half of its revenue across other industries that were sheltered from the cyclicality of the rail car manufacturing industry. Furthermore, the company had made large investments within its rail car leasing segment over the past ten years. These investments were paying off as the segment grew from being nearly non-existent to attaining a 15% market share within the rail car leasing industry. With an experienced management team, diversified revenue streams and a wide moat as the largest manufacturer of rail cars in its industry, Trinity was trading well below its fair value.