UIUC Investment Management Academy

Today, Shruthi and Snehal pitched Harmony Biosciences, a commercial-stage pharma company in the healthcare industry. Amanda and Naina updated the current holding, Prestige. Harmony is a biotech company specializing in neurological diseases. It has realized strong growth from its product, WAKIK. The market is conservative and cautious because the patent protection of WAKIK will end in 2030. Thus, the success highly depends on the pipeline. The team believes in the long-term momentum from the pipeline and believes the current setback from the FDA is temporary, creating a strong buy opportunity. Prestige is a pharma company selling OTC products. It has seen growth in e-commerce and the international market as well. It faced supply chain challenges in 2024, but has solved them giving the firm a boost in valuation. The team believes that the company faces limited downsides and can enjoy the recovery from the supply challenges to deliver stable returns. The class decided to hold PBH.

We had such a great time meeting everyone Tuesday evening! We look forward to getting to know you all more with coffee chats coming up!

Today, Boyang and Eshan pitched Conmed Corp, a medtech firm in the healthcare industry. Ashley and Ajay updated the current holding, Progyny. Conmed Corporation is a medical technology company specialized in surgical devices, it has faced supply chain challenges since 2020–2021, leading to three years of underperformance. The market remains skeptical due to slow revenue growth and margin pressures. However, recent stock sell-offs created a strong buying opportunity as Conmed’s strategic deleveraging and increased R&D focus on high-margin products has positioned it for long-term profitability. PGNY is a fertility benefits management company. Serving over 465 employers across more than 40 industries in the United States. The team believes that the company is still fundamentally driven by members covered, utilization rate, and ART conversion. The member base is growing at a slower pace, and utilization rate & ART conversion are declining. The failure to provide appropriate reasoning marks that it is not able to turn it around in short. The loss of Amazon as their biggest client is also a concern, with uncertainty about client retention in the future. The class was unsure on the team's sell thesis, as there could be upside in staying with the market's poor sentiment on the firm. The class decided to buy Conmed Corp and sell Progyny.

Today, Ian and Evie pitched AVA, a utilities company with a larger focus on the Pacific Northwest. Tiffany and Olivia updated our current Utilities holding NWE, a nat gas and electricity provider predominantly in the Great Plaines Area. NWE is expecting large influxes in demand for utilities, currently investing in a $2.7 billion plan to improve infrastructure and capacity. New rates are expected for Montana, and there was just a rate increase in South Dakota for NEW to capitalize on. Developing Colstrip ownership allows NWE to to enhance reliability. The firm has been expanding transmission capabilities to allow better access and grow capacity to meet the growing demand. The firm plans to provide power to new data centers and Yellowstone Station starting in 2026 and 2027. AVA is also focused on increasing capabilities to meet new demand, seeing large population growth in its provider area coverage such as Idaho. For AVA, 3 of the 4 states it operates in are currently having rate reviews. If these successfully increase, as they did in Idaho, this will improve margins and the demand for the firms’ services. This firm also has large investment prospects, planning to spend over $1 billion in the next two years. The class decided to buy AVA.

Yesterday, Lev and Kishan pitched AeroVironment Inc. (AVAV), a defense technology company, while Dennis and Brendan pitched Moog Inc. (MOG.A), a designer and manufacturer of precision motion control systems. AVAV specializes in unmanned aircraft systems (UAS) and tactical missile systems, primarily serving defense and government customers. The company benefits from increasing defense budgets, ongoing geopolitical tensions, and strong demand for its small drones and loitering munitions. The team discussed concerns over valuation and the accuracy of certain model assumptions affecting the risk-reward profile. MOG.A designs and manufactures precision motion control systems for aerospace, defense, and industrial applications. The company operates in three segments: Aircraft Controls, Space and Defense, and Industrial Systems. MOG.A benefits from strong demand in defense and commercial aerospace, alongside secular tailwinds in automation and space technologies. The team highlighted the company's stable revenue streams, engineering expertise, and potential margin expansion. The class decided to hold MOG.A.

Are you interested in helping manage a $1.5 million dollar portfolio? If so, you should attend the Investment Management Academy’s info night on February 25 at 5pm at Deloitte Auditorium! We are looking for freshman, sophomore, and junior students who are passionate about investing and finance to join our team. The Investment Management Academy, part of the Stanley C. Golder Academies, offers select students institutional investment experience by managing over $1.5 million of assets under the Directors' oversight. Academy members gain practical skills in industry analysis, company valuation, modeling, and forecasting techniques, and access resources such as Capital IQ, Bloomberg, and Thomson & Reuters. The program also provides opportunities for students to interact with industry practitioners, participate in the CFA Institute Research Challenge, and receive feedback from senior members and alumni. IMA members go on to intern at top investment and asset management firms and help students break into the industry. What: IMA Info Night When: February 25, 5.00pm Where: Deloitte Auditorium at BIF RSVP: https://lnkd.in/gZKcB-2Z For questions, feel free to contact, Om Badiyani omb5@illinois.edu

Today, Andrew and Asher updated our holding in GMS Inc., a trading and distribution company. Yash and Jonathan pitched Granite Construction Inc. (GVA), a heavy construction company. GMS is a leading distributor of interior building materials, primarily serving residential and commercial construction markets across North America. The company operates as a middleman between manufacturers and contractors, specializing in wallboard, steel framing, and complementary products like insulation, tools, fasteners, and stucco. The team highlighted its M&A-driven expansion, strong cash flow generation, and market leadership in building materials distribution. GVA is a heavy civil infrastructure contractor and construction materials producer, specializing in large-scale public infrastructure projects such as highways, bridges, airports, and water infrastructure. The company operates through two segments: Construction, which focuses on executing major infrastructure projects, and Materials, which provides aggregates, asphalt, and concrete that support its construction projects. GVA benefits from vertical integration. The class decided to hold GMS.

Today, Om and Mukund pitched KMT, a machinery firm with a global presence. Vaibhav and Gary updated one of our current Industrials holding DY, an engineering and construction company. KMT has two main segments including metal cutting and infrastructure. The team believes the stock has been trading largely flat recently due to weak economic conditions, making it a strong time for IMA to buy. The team believes KMT is uniquely positioned to capture the increased activity in the manufacturing center. The firm has a strong market position, seeing pricing power and growth in end markets like aerospace and defense, EV, and renewable energy. DY builds wirelines and wireless infrastructure across the US, and provides services to major telecom customers such as AT&T and Verizon. The team believes the recent AI surge could positively benefit the firm and boost its data centers popularity. Another driver for this stock are upcoming fundings initiatives from BEAD and LUMN, which are expected to translate to $9 billion for DY over the next 5 years allowing for both stability and strong revenue growth. The class decided to continue to hold DY.

Today, Yasmin and Shruthi updated our current energy holding, CHRD. Kamron and Michael pitched CRGY, an exploration and production company against it. CHRD is also an exploration and production company, however it is based on the Bakken Formation up north in Montana and North Dakota. They have a unique business model, as they focus on capital efficiency and shareholders. They have promise with their new 4-mile lateral wells, but improved performance is yet to be seen. This stock is highly correlated with oil prices, making it predictable but on a downward trend. On the other hand, CRGY operates in the Eagle Ford Basin. They focus heavily on M&A, with Private Equity backing by KKR. This allows them to pursue bolt on acquisitions to grow the business. CRGY also has unique exposure to natural gas, with capabilities including pipelines and easy access to major distribution ports. The firm's production includes about 40% nat gas, giving it strong positioning going into heavy demand period from 2025-2026. The class decided to buy CRGY and sell CHRD.

On Tuesday, Andy and Boyang updated our current materials holding Sealed Air Corporation. Mark and Ashley pitched ATI, a specialty materials manufacturer with. focus on nickel and titanium based alloys. SEE is a global leader in packaging with two main segments consisting of Food and Protective. theater firm has a diverse portfolio of products, offering both the packing machines and materials with a razor blade business model. The thesis was based around the firms ability to grow and attract new business with their superior products and new marketing initiatives. The alloys that Advanced Technology International (ATI) produces are predominantly used in aerospace. The thesis centered around margin expansion in regards to increased plane production from Boeing, and an increase in demand for aircraft repair materials. Air travel has been increasing, with fewer new planes to service passengers. The team saw this as an opportunity for IMA to invest in a firm with unique exposure to this demand. The class decided to keep SEE due to its projected growth and potential as an acquisition target.