Portfolio Memo

To: Current Clients

From: Portfolio Managers
Date: November 2, 2016
Subject: Portfolio Update
As of November 2, 2016, our portfolio has a loss of 7.46% which accounts for $223,887.08 that
we have lost. Currently, our portfolio only contains three stocks that are making money out of the thirteen
that we hold. Our portfolio started out strong with significant gains coming from companies such as
Amazon(AMZN) and Illumina(ILMN) with gains of 8.1% and 3.1%, which accounted for $18,800 and
$16,700. This was in correlation with the market doing well as a whole. The S&P 500 return had been
positive for the first three weeks and ending with a 0.06% gain. During the week of our biggest losses, the
S&P 500 had a loss of 1.27%, which also translated to our portfolio. Illumina(ILMN), Oracle(ORCL),
and GoPro(GPRO) started to take losses that have continued to grow. They took a loss of 20.75%, 5.96%,
and 11.50%. These three companies accounted for around $128,000 of our total losses which was around
75% at the time. This can be attributed to things going on in the company that nobody could have
foreseen such as the recall of Illuminas breast cancer drug that was initially making a large amount of
profits. We have dealt with these problems and we have rid our portfolio of the stocks that we believe will
not bounce back from their current recession. Our current portfolio beta is 1.04, which shows that we are
not investing in risky companies, we have just not had the best of luck so far.
The diversity of our portfolio is a strength. We have investments in the health care, technology,
consumer goods, industrial goods, service and financial sectors of the market. The key to having a
successful diverse portfolio is to have the money you invested balanced out over different sectors of the
market. Our portfolio does a good job with that considering we have $676,303.35 invested in the
technology sector, $682,909.70 invested in the health care sector, $425,006.42 invested in the consumer
goods sector, $711,048.00 invested in the service company sector, and $502,615.00 invested in the
financial sector. Obviously, our returns havent been what we hoped for, but we are confident our diverse
portfolio will help gain back the money that we lost.
Old Dominion Freight Line Inc. (ODFL) has been doing exceptionally well along with our short
sales. Old Dominion has had a 5.79% return of the initial investment; the stock has made $14,070. Our
short sales have accounted for gains of $16,000 in total. Finally, we predict to see growth from some
of other stocks such as Amazon (AMZN), Anheuser-Busch (BUD), and Honeywell International Inc.
(HON).

Your funds are being used in the most effective way possible. We started out with an initial
strategy of investing in companies for the long run. However, due to unfortunate events, these companies
have not been as profitable as we initially thought. We have noticed certain trends and have been actively
trading much more. We have also noticed that our short sales have been very profitable, and since many
of the stocks in the market are losing right now, we will continue to short sale different companies. Our
diverse portfolio and detailed investment strategy will benefit the portfolio in the long run. We currently
have around $900,000 of cash to invest along with a large amount of borrowing money if need be. If you
have any questions, please feel free to contact us at 508-868-1518 or at bcoughlin@yahoo.com.

Sincerely,

Brendan Coughlin, Dominic Luoni, and Louis Lawson