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									Student Investment Management (SIM) Fund
Max M. Fisher College of Business – The Ohio State University

                                 2009 Annual Report




                             1
                                               Table of Contents


AN INTRODUCTION FROM THE GRADUATE ASSISTANT ..............................................................2

HISTORY OF THE STUDENT INVESTMENT MANAGEMENT PROGRAM .........................................3

OBJECTIVES AND PHILOSOPHY....................................................................................................4

INVESTMENT PROCESS ...............................................................................................................5

PERFORMANCE: SIM VS. S&P 500 ...............................................................................................6

ACKNOWLEDGEMENTS .............................................................................................................11




                                                       APPENDICES

        Appendix I:         Holdings - June 30, 2009

        Appendix II:        Purchase Transactions - July 1, 2008 to June 30, 2009

        Appendix III:       Sale Transactions - July 1, 2008 to June 30, 2009

        Appendix IV:        Dividends Received - July 1, 2008 to June 30, 2009

        Appendix V:         Net Interest Received - July 1, 2008 to June 30, 2009

        Appendix VI:        Management Fees - July 1, 2008 to June 30, 2009

        Appendix VII:       Rosenfield Prize for Excellence in Security Analysis - July 1, 2008 to June 30, 2009




                                                                2
An Introduction from the Graduate Assistant
The end of the Fiscal Year 2009 on marked the end of an era for the SIM program. After 9
years as the director of the program, Professor Andrew Karolyi handed off the duties to
Professor Kewei Hou. Professor Karolyi will be leaving The Ohio State University to
endeavor a new opportunity at Cornell University. I would like to take the opportunity to
thank Professor Karolyi for mentoring this excellent program for the past decade.
I would also like to thank Professor Karolyi, Professor Hou, Gary Leimbach and Mike
Krasnoff for giving me the opportunity to experience a summer internship at the Office of
Investments/Office of Financial Services at The Ohio State University in addition to serving
the SIM class as the Graduate Assistant for the Fiscal Year 2010. The SIM class is continuing
the tradition of a quarterly class trip to meet with alumni who work for different entities in
the financial services industry. We started this summer with a trip to Chicago and are
planning to vary a little from the usual New York and Chicago trips in the following quarters
even though these two cities will remain the main focus for the class. Without Jim Miller
and Caroline Sue from the Office of External Affairs, these trips would not be possible. Mr. Professor Kewei Hou
Miller and Ms. Sue put a lot of hard work into the organization and arrangement of the
meetings with Ohio State and Fisher alumni to provide the SIM students with excellent networking and learning
opportunities. I would also like to thank Robyn Scholl, Jordan King and Lindsey Case from the department of finance for
helping the first German in this position to get a handle on all the administrative issues that come with being the
Graduate Assistant for this program. Chris Henneforth and Royce West did an outstanding job teaching the class; giving
students an insight into the field of stock valuation from the perspective of people who actually work in the industry.
Last but not least, one more “thank you” to Jonathan Stone, who was the Graduate Assistant for the 2009 Fiscal Year.
Even though the past year was very difficult and challenging for everyone in the financial services industry including the
SIM class, we look very optimistic into the coming year, and are hopeful that the worst is behind us.

                                                                               Christian Toepfner von Schuetz
                                                                               Graduate Assistant - SIM Program




                                     Professor Hou, Rosenfield Prize winner Nick Verrugia and
                                                 Professor Karolyi – Spring 2009



                                                                3
HISTORY OF THE STUDENT INVESTMENT MANAGEMENT PROGRAM
Following an initial "paper dollar" experiment that lasted roughly one year, a team of students in 1990 developed a
proposal for managing actual endowment funds and made a formal presentation before the Investment Committee of
the University Trustees. On the basis of the proposal and favorable results during the trial period, the student team was
awarded a $5 million equity account. A burst of media attention followed the initial press release, including a spot on
the NBC show, Today. Coverage of the first anniversary of the program was even more intense upon the announcement
that the student account had earned 20% or $1 million while the market in general had only returned 13.5% as
measured by the S&P 500 index. Students battered their own mark by posting a 25% return ($1.5 million) during the
second year of the program.
                                                                          SIM Transition Lunch at the Blackwell Hotel
From its inception and through its continuing
evolution, The Ohio State University SIM program
has been an integrated effort of many individuals
and groups. The student management team is at
the hub of the network, but there are essential ties
to and support from the following:
University Trustees
University Trustees proposed the project,
monitored its early development, and approved
the final plan. In addition, the Board continues to
supervise both the investment and academic
merits of the program.
University Administration
The student team was hired as an equity manager
subject to the same conditions and limitations that
apply to any other equity manager for the
University Endowment with one notable exception: From left to right: Anil Makhija (department chair), Chris Henneforth, Royce West,
                                                         Jonathan Stone, Andrew Karolyi, Kewei Hou, Christian Toepfner von Schuetz
the Office of Investments serves as the formal
manager of the account. Thus far, it has been able to follow all of the advice provided by the student management team.
However, should the need arise, the Office of Investments has the authority to override decisions or to take
independent action. This arrangement allows the SIM program to avoid potential legal problems with fiduciary
responsibility. It also eliminates technical problems due to the academic calendar (vacations, quarterly turnover of
managers, etc.). Other University offices are involved with the SIM program as well including University Communications
which helps coordinate media relations.
Fisher College of Business
Fiscal responsibility for the management of the program rests with the Dean's office. As briefly mentioned in the
introduction, the Office of External Affairs also assists with program publicity, media relations, investment management
firm visits and special events.
Securities Industry
Support from the securities industry has been extensive. It is difficult to acknowledge the many offers of help. Over time,
we have found increasingly more effective channels for this support which now includes summer internships, speakers,
and state-of-the-art investment information services, as well as economical commissions for trades and services. The
SIM program would like to express its gratitude to the Frank Bettendorf Group of Morgan Stanley who invited two of the
finalists for the SIM GA position and Professor Hou to this year’s Memorial Tournament where they were able to listen
to the presentations of senior level economists from Morgan Stanley on the economic outlook.


                                                                4
OBJECTIVES AND PHILOSOPHY
The Ohio State University Student Investment Management Program (SIM) combines traditional academic objectives
with the practical demands of hands on investment management. The trustees, administration, and faculty view the
program as a unique opportunity for delivering high quality practical education in an area of considerable interest to
students and employers alike.

The SIM Program has three primary objectives:

     To achieve a total return in excess of the Standard and Poor’s (S&P) 500 Index
     To preserve and maintain the real purchasing power of the fund
     To enhance the educational experience of the students, by providing them an opportunity to apply the
      investment management skills and knowledge they have acquired

Outside the classroom, the SIM
Program       concentrates      on
establishing and maintaining ties
with the business community,
which, in turn, enhances public
relations for both the Fisher
College of Business and The Ohio
State University. The program
sponsors quarterly student trips to
major U.S. financial centers, such
as Chicago and New York, where
they meet with professionals in
the securities and investments
industry. For the summer quarter
2009, 11 students joined Jim
Miller, the director of external
relations at The Fisher College of
Business on a trip to Chicago. On
August 6th & 7th they had meetings
with Oak Ridge Investments,
Greyrock Capital Group, Mesirow                             SIM class trip to Chicago - CBOT - August 7th 2009
Financial, JP Morgan and also visited
the Chicago Board Options Exchange and Chicago Board of Trade. On August 6th, 15 Alumni of The Ohio State University
and the Fisher College of Business joined the students for a dinner of good food and networking. As mentioned in the
introduction, Caroline Sue deserves a special “thank you” for putting together a very strong schedule of meetings every
quarter.

The Rosenfield Prize
Thanks to a generous donation from OSU alumni Jack and Dan Rosenfield, the SIM program continued a quarterly
competition in which the participants are required to prepare a security analysis report on a publicly-traded stock in the
SIM investment universe. Each quarter two prizes are awarded: $2000 for the best report and $500 for the second best
report. Apart from the prize money, the students benefit by gaining a competitive advantage for internship and full-time
employment opportunities in a variety of fields in finance.




                                                            5
From an academic perspective, the Student Investment Management Program focuses on developing the students'
understanding of the institutional structure and fundamental concepts of asset valuation in financial markets. To do so,
analytical tools are developed to study the valuation of different types of securities. Furthermore, theoretical material
and real world applications are utilized to give the students an understanding of investment theory and portfolio
development. In the classroom, the students become active portfolio managers of the SIM Portfolio. Each student acts
as a security analyst as follows:

     Each student is assigned one stock from the                Professor Karolyi and Rosenfield Prize winner Michael Leesburg, Jr.
                                                                                           August 2008
      existing SIM portfolio. The student analysts
      give updates during each class meeting on the
      current events and activities affecting their
      firm.

     The class is further divided into market sector
      groups, which are responsible for researching
      and analyzing that specific market sector;
      periodic reports are delivered to the class
      outlining overall trends, recent developments
      and specific stock recommendations.

     Each member of the class is responsible for
      researching stocks within their sector that may
      be added to the portfolio at the end of the
      quarter. The analyst prepares a written report
      and makes an oral presentation to the class.




INVESTMENT PROCESS
The investment strategy of the SIM program is based on the philosophy that the market is inefficient in the short term
and that fundamental analysis can be used to identify attractive securities to purchase. The structure of the SIM
program necessitates a focus on large-cap stocks, with an emphasis on portfolio diversification to manage risk.

In the classroom, the students become active portfolio managers of the SIM Portfolio. They are divided into groups and
each group is assigned the responsibility of covering one or two related sectors as well as the overall economy.

Sector groups review the prior class sector presentations and complete a detailed assessment of current information.
The groups present their sector outlooks to the class and recommend an overweight, market-weight, or underweight
position in their sectors. Each group then assesses the current SIM portfolio holdings in their sectors and evaluates
alternative companies within their sectors. Finally the group makes a final class presentation, in which they recommend
specific stock actions. They can recommend holding, adding to, selling part of or completely liquidating the current
positions. In addition, the student analysts can recommend buying new stocks to the SIM portfolio. The only
prerequisite for the latter is that the new stock(s) must be within the group’s assigned sector. After a final round of
discussions and class voting, the buys and sells for the quarter are finalized and orders are sent to the brokers. The class
engages in a group decision-making process and a majority-vote rule applies.

To facilitate continuity, all sector and stock presentations are uploaded on the class website and students review these
presentations      prior     to    their    own     class   presentations    (http://fisher.osu.edu/fin/courses/sim/  or
http://www.buckeyefunds.com). The individual stock reports of the Rosenfield prize winners are also available on the
website for students to get familiar with what they are expected to deliver in their own reports.

                                                             6
PERFORMANCE: SIM vs. S&P 500
The benchmark for the Student Investment Management fund is the S&P 500 Index. In the Fiscal Year ending June 30,
2009, the SIM portfolio’s net return was -30.86% underperforming the benchmark by 464 basis points. The
underperformance was caused by the steep decline in markets in the Fall of 2008 that hit the SIM fund even harder than
the general market. However, in the first 6 months of the calendar year 2009, the SIM portfolio was back on track,
outperforming the S&P 500 by 136 basis points. Exhibit 1 shows the graphs of the SIM portfolio and its benchmark for
the Fiscal Year 2009. Exhibit 2 gives an overview of the performance over the last 10 years.

Exhibit 1: SIM vs. S&P 500 - Relative Performance - July 1, 2008 to June 30, 2009


                                             SIM         S&P 500 Total Return
   110

   100

    90

    80
                                                                                                         -26.21%

    70
                                                                                                         -30.86%

    60

    50

    40
      Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09




                                                           7
Exhibit 2: SIM vs. S&P 500 - Relative Performance - July 1, 1999 to June 30, 2009

                                                                          SIM                     S&P 500 Total Return
   160

   140

   120

   100
                                                                                                                                                                                              -12.12%

    80

    60
                                                                                                                                                                                             -22.23%

    40
         07/99
                 12/99
                         05/00
                                 10/00
                                         03/01
                                                 08/01
                                                         01/02
                                                                  06/02
                                                                          11/02
                                                                                  04/03
                                                                                          09/03
                                                                                                  02/04
                                                                                                          07/04
                                                                                                                  12/04
                                                                                                                          05/05
                                                                                                                                  10/05
                                                                                                                                          03/06
                                                                                                                                                  08/06
                                                                                                                                                          01/07
                                                                                                                                                                  06/07
                                                                                                                                                                          11/07
                                                                                                                                                                                  04/08
                                                                                                                                                                                          09/08
                                                                                                                                                                                                  02/09
Exhibit 3 shows that the SIM fund still outperforms the S&P 500 Index for the 3 year and 10 year period (annualized
average geometric returns) despite the significant underperformance in the last 12 months.
Exhibit 3: SIM vs. S&P 500 – Annualized Portfolio Returns
 Annualized Returns Return for fiscal year 2009 3 Years 5 Years 10 Years 15 Years Since Inception (2/13/90)
 SIM (net of fees)              -30.86%             -7.78% -2.67% -1.21%  5.36%             6.23%
 S&P 500                        -26.21%             -8.22% -2.24% -2.22%  6.93%             7.67%

Exhibit 4 gives an overview of the SIM portfolio as of June 30, 2009. The market value of the fund was $15.8 million. The
portfolio beta was unchanged. The portfolio increased slightly from 36 to 38 holdings compared to June 2008 and
comprised mainly large cap U.S. based companies. 10 of the 38 positions were not members of the S&P 500 index. They
represent 25.22% of the total portfolio value. 4 of those companies are non U.S. based, accounting for 11.96% of the
fund. These companies are BP (UK), Canadian Pacific Railway (Canada), China Mobile Ltd. (China/Hong Kong) and
Transocean Ltd. (Switzerland). Compared to last year’s 5.68% international exposure, this number more than doubled.
                                                                 Exhibit 4: Portfolio Overview - June 30, 2009
                                                  Inception Date                                                                13-Feb-90
                                                  Total Net Assets                                                            $15,872,636
                                                  Number of Equity Positions                                                             38
                                                  Average Market Cap.                                                       $65.763 Billion
                                                  Average Weighted Market Cap.                                              $75.099 Billion
                                                  Average P/E Ratio                                                                 13.23
                                                  Average P/B Ratio                                                                   4.09
                                                  Average Dividend Yield                                                            2.51%
                                                  Portfolio Beta                                                                      1.00

                                                                                                    8
As of Fiscal Year end, the SIM Portfolio was overweight in Information Technology, Consumer Staples, Industrials and
Materials relative to the S&P 500. Hence, Financials, Energy, Consumer Discretionary, Health Care, Telecommunication
Services and Utilities were the underweight sectors. The cash position represented 3.56% of the total portfolio value.
Exhibit 5 shows the sector weights in comparison to the benchmark whereas Exhibit 6 gives an overview of selected risk
measures for the portfolio.

Exhibit 5 - SIM vs. S&P 500 - Sector Allocation - June 30, 2009


                                                      S&P 500      SIM

         25%

         20%

         15%

         10%

          5%

          0%




Exhibit 6: SIM vs. S&P 500 - Selected Risk Measures

      Measures of Risk          Fiscal Year 2009      3 Years      5 Years     10 Years     Since Inception (2/13/90)
Standard Deviation
  SIM                                32.38%           21.59%       17.42%       18.07%               17.57%
  S&P 500                            28.49%           18.97%       15.50%       16.03%               14.98%
Sharpe Ratio
  SIM                                 -1.10            -0.46        -0.31        -0.21                 0.19
  S&P 500                             -1.07            -0.58        -0.34        -0.32                 0.29
R2
  SIM                                0.971            0.963        0.958        0.910                 0.777
Tracking Error
  SIM                                6.76%            4.74%        3.89%        5.57%                 8.33%




                                                               9
Exhibit 7 shows the performance of the fund compared to the S&P 500 in each month of the Fiscal Year 2009. The SIM
fund was able to outperform the S&P 500 Benchmark in five out of the twelve months on a net basis.

Exhibit 7 - SIM vs. S&P 500 - Monthly Return Comparison - FY 2009


                                                     S&P 500          SIM

     15%
                                                                                        9.57% 10.11%
     10%                                                                      8.76% 8.57%
                                                                                               5.59% 5.30%
       5%                                                         3.51%
                     1.45% 0.55%                     1.06%                                                0.20% 0.70%
       0%
                  -0.15%
            -0.84%
      -5%
                        -8.91%                               -8.43%
     -10%                                               -10.68%       -6.43%      -11.88%
                              -10.27%          -7.18%                     -10.65%
     -15%
                                   -16.80%
     -20%                                     -20.57%

     -25%




At the end of the Fiscal Year the ten largest holdings of the SIM portfolio amounted to $6,485,349.41 and represented
40.86% of the fund’s total value. The largest holding was Oracle Corp. which had a market value of $822,956.40,
representing 5.18% of the total value of the SIM fund.

                                       Exhibit 8: Top Ten Holdings - June 30, 2009

                            Security                Ticker          Market Value     % of SIM portfolio
                 Oracle Corp.                     ORCL            $   822,956.40                5.18%
                 PepsiCo Inc.                     PEP             $   741,960.00                4.67%
                 Microsoft Corp.                  MSFT            $   714,027.03                4.50%
                 BP PLC - ADR                     BP              $   672,431.04                4.24%
                 Johnson & Johnson Co.            JNJ             $   646,156.80                4.07%
                 Exelon Corp.                     EXC             $   627,322.50                3.95%
                 Hewlett Packard Co.              HPQ             $   580,754.90                3.66%
                 Wellpoint                        WLP             $   572,563.39                3.61%
                 Transocean Ltd.                  RIG             $   569,804.30                3.59%
                 Shaw Group                       SGR             $   537,373.05                3.39%
                 Grand Total                                      $ 6,485,349.41               40.86%

                                                             10
The next graph shows the change in the value of $10,000 invested in both the SIM portfolio and the S&P 500 from
February 13, 1990 (inception) to June 30, 2009. The value of $10,000 invested in the SIM portfolio would be $51,322.47
(net capital gains plus dividends), whereas the same value invested in the S&P 500 would end with a value of $57,081.40
(dividends re-invested).

Exhibit 9: Value of $10,000 invested in SIM and S&P 500


                                                    SIM        S&P 500
   $80,000


   $70,000


   $60,000


   $50,000


   $40,000


   $30,000


   $20,000


   $10,000


        $0




                                                          11
ACKNOWLEDGEMENTS
  Professor Kewei Hou is the director of the SIM program

  Royce West and Chris Henneforth were the instructors during the Fiscal Year

  The program depends on the assistance received from the personnel at the Ohio State Office of Financial
   Services and Office of Investments. Al Rodack, Tim Michel and Gary Leimbach have made numerous
   presentations to the class, while other staff members of the both offices and local brokerage firms have helped
   this program succeed

  Jonathan Stone was the SIM Graduate Assistant for the academic year ended June 30, 2009

    Christian Toepfner von Schuetz prepared this annual report under the supervision of Professor Kewei Hou

  Contact:         OSU SIM Program
                    700 Fisher Hall
                    2100 Neil Avenue
                    Columbus, OH 43210
                    SIM@fisher.osu.edu

  GO BUCKEYES!




                                                      12
Appendix I: Holdings - June 30, 2009

 Ticker             Security               Quantity   Unit Cost   Market Price   Market Value     % of assets
 ARO      Aeropostale Inc.                     4,125     36.16          34.27    $   141,363.75        0.89%
 AA       Alcoa Inc.                          27,100     11.47          10.33    $   279,943.00        1.76%
 AAPL     Apple Inc.                           1,585    138.88         142.43    $   225,751.55        1.42%
 BP       BP PLC - ADR                        14,103     57.08          47.68    $   672,431.04        4.24%
 BRK/A    Berkshire Hathaway Inc. - CL A           4 109449.23       90000.00    $   360,000.00        2.27%
 BBY      Best Buy Co.                         8,045     48.18          33.49    $   269,427.05        1.70%
 CP       Canadian Pacific Railway             6,495     30.86          39.80    $   258,501.00        1.63%
 CAH      Cardinal Health Inc.                13,033     43.44          30.55    $   398,158.15        2.51%
 CHL      China Mobile Ltd. Spon-ADR           7,925     52.92          50.08    $   396,884.00        2.50%
 CL       Colgate-Palmolive Co.                5,067     66.48          70.74    $   358,439.58        2.26%
 CMCSA    Comcast Corp.                       26,200     16.44          14.46    $   378,852.00        2.39%
 COP      ConocoPhillips Co.                  12,300     81.52          42.06    $   517,338.00        3.26%
 DOW      Dow Chemical Co.                    25,555      8.26          16.14    $   412,457.70        2.60%
 LLY      Eli Lilly Co.                       11,815     45.61          34.64    $   409,271.60        2.58%
 EMR      Emerson Electric Co.                 5,080     34.67          32.40    $   164,592.00        1.04%
 EXC      Exelon Corp.                        12,250     50.37          51.21    $   627,322.50        3.95%
 GME      GameStop Corp.                       6,350     25.32          22.01    $   139,763.50        0.88%
 GE       General Electric Co.                17,600     34.79          11.72    $   206,272.00        1.30%
 GILD     Gilead Sciences Inc.                 3,390     44.05          46.84    $   158,787.60        1.00%
 GS       Goldman Sachs Group Inc.             1,000    146.01         147.44    $   147,440.00        0.93%
 HPQ      Hewlett Packard Co.                 15,026     47.20          38.65    $   580,754.90        3.66%
 HCBK     Hudson City Bancorp                 27,700     11.63          13.29    $   368,133.00        2.32%
 INTC     Intel Corp.                         27,900     22.07          16.55    $   461,745.00        2.91%
 JPM      JP Morgan Chase & Co.                5,960     35.15          34.11    $   203,295.60        1.28%
 JNJ      Johnson & Johnson Co.               11,376     60.42          56.80    $   646,156.80        4.07%
 MCD      McDonalds Corp                       4,780     54.64          57.49    $   274,802.20        1.73%
 MSFT     Microsoft Corp.                     30,039     27.76          23.77    $   714,027.03        4.50%
 NCR      NCR Corp                            40,300     26.54          11.83    $   476,749.00        3.00%
 NIHD     NII Holdings Inc.                    7,350     20.61          19.07    $   140,164.50        0.88%
 ORCL     Oracle Corp                         38,420     17.29          21.42    $   822,956.40        5.18%
 OSK      Oshkosh Truck Corp.                 30,955     33.17          14.54    $   450,085.70        2.84%
 PEP      PepsiCo Inc.                        13,500     70.67          54.96    $   741,960.00        4.67%
 PM       Philip Morris Int'l                  7,763     42.86          43.62    $   338,622.06        2.13%
 SGR      Shaw Group                          19,605     20.13          27.41    $   537,373.05        3.39%
 RIG      Transocean Ltd.                      7,670     71.50          74.29    $   569,804.30        3.59%
 WMT      Wal-Mart Stores Inc.                10,375     50.04          48.44    $   502,565.00        3.17%
 WLP      Wellpoint                           11,251     76.06          50.89    $   572,563.39        3.61%
 WFC      Wells Fargo                         15,200     31.36          24.26    $   368,752.00        2.32%




                                                      13
Appendix II: Purchase Transactions - July 1, 2008 to June 30, 2009

 Trade Date Settlement Date Cusip/ Sedol                Security       Quantity         Price         Amount

 Summer Quarter
  23-Jul-08       28-Jul-08     688239201   OshKosh Corp                    2,355   $     20.31   $    (47,821.57)
  14-Aug-08       19-Aug-08     803111103   Sara Lee                       49,100   $     14.53   $   (713,423.00)
  13-Aug-08       19-Aug-08     055622104   BP                              5,700   $     59.43   $   (338,749.86)
  13-Aug-08       19-Aug-08     773903109   Rockwell Automation             4,200   $     48.49   $   (203,645.82)
  13-Aug-08       19-Aug-08     688239201   OshKosh Corp                   12,600   $     16.44   $   (207,169.20)
  13-Aug-08       19-Aug-08     693483109   Posco ADR                       4,000   $ 117.01      $   (468,025.60)
  13-Aug-08       19-Aug-08     62886E108   NCR Corporation                14,800   $     26.25   $   (388,500.00)
  13-Aug-08       19-Aug-08     532457108   Eli Lilly                      15,800   $     48.61   $   (768,026.94)
  13-Aug-08       19-Aug-08     151290889   Cemex ADR                      25,900   $     21.65   $   (560,740.18)
 Fall Quarter
  5-Dec-08        10-Dec-08     532457108   Eli Lilly                       3,500   $     33.23   $   (116,295.90)
  8-Dec-08        11-Dec-08     14149Y108   Cardinal Health                10,100   $     32.02   $   (323,402.00)
  8-Dec-08        11-Dec-08     20030N101   Comcast                        26,200   $     16.39   $   (429,362.98)
  8-Dec-08        11-Dec-08     820280105   Shaw Group                     17,300   $     18.97   $   (328,111.80)
  8-Dec-08        11-Dec-08     369604103   General Electric                1,400   $     18.60   $    (26,040.00)
  8-Dec-08        11-Dec-08     532457108   Eli Lilly                        500    $     35.42   $    (17,710.00)
  8-Dec-08        11-Dec-08     949746101   Wells Fargo                    15,200   $     31.31   $   (475,969.76)
  8-Dec-08        11-Dec-08     68389X105   Oracle                         21,600   $     16.77   $   (362,194.20)
  8-Dec-08        11-Dec-08     718172109   Phillip Morris                 10,000   $     42.81   $   (428,104.00)
  8-Dec-08        11-Dec-08     20825C104   Conoco Phillips                 2,900   $     51.25   $   (148,621.81)
 Winter Quarter
  19-Mar-09       24-Mar-09     055622104   British Petroleum               4,210   $     40.52   $   (170,587.52)
  19-Mar-09       24-Mar-09     580135101   McDonalds                       4,780   $     54.59   $   (260,927.77)
  19-Mar-09       24-Mar-09     585055106   Medtronic                      11,195   $     27.62   $   (309,187.99)
  19-Mar-09       24-Mar-09     931142103   Wal-Mart                       10,375   $     49.99   $   (518,660.78)
  19-Mar-09       24-Mar-09     706902509   Pengrowth Energy               22,685   $      6.22   $   (141,118.85)
  19-Mar-09       24-Mar-09     H8817H100   Transocean                      4,470   $     62.65   $   (280,046.39)
  19-Mar-09       24-Mar-09     36467W109   GameStop                        6,350   $     25.27   $   (160,432.75)
  19-Mar-09       24-Mar-09     13645T100   Canadian Pacific Railway        6,495   $     30.81   $   (200,125.89)
  19-Mar-09       24-Mar-09     820280105   Shaw Group                      2,305   $     28.45   $    (65,574.25)
  19-Mar-09       24-Mar-09     68389X105   Oracle                         16,820   $     17.85   $   (300,237.00)
  19-Mar-09       24-Mar-09     260543103   Dow Chemical                   36,260   $      8.21   $   (297,694.60)
 Spring Quarter
  10-Jun-09       15-Jun-09     037833100   Apple Inc                       1,585   $ 138.83      $   (220,043.33)
  10-Jun-09       15-Jun-09     16941M109   China Mobile Ltd                7,925   $     52.87   $   (418,997.13)
  10-Jun-09       15-Jun-09     291011104   Emerson Elec Co                 5,080   $     34.62   $   (175,845.22)
  10-Jun-09       15-Jun-09     46625H100   JP Morgan Chase & Co            5,960   $     35.10   $   (209,176.93)



                                                           14
  10-Jun-09      15-Jun-09      62913F201    NII Holdings Inc                7,350   $    20.56    $       (151,102.77)
  10-Jun-09      15-Jun-09      007865108    Aeropostale                     4,125   $    36.11    $       (148,946.16)
  10-Jun-09      15-Jun-09      30161N101    Exelon Corp                    12,250   $    50.32    $       (616,467.29)
  10-Jun-09      15-Jun-09      375558103    Gilead Sciences Inc             3,390   $    44.00    $       (149,156.11)
  10-Jun-09      15-Jun-09      013817101    Alcoa Inc                      27,100   $    11.42    $       (309,387.15)
  10-Jun-09      15-Jun-09      38141G104    Goldman Sachs                   1,000   $ 145.96      $       (145,962.00)
  10-Jun-09      15-Jun-09      H8817H100    Transocean Ltd                  3,200   $    83.73    $       (267,945.92)
                                             Total Purchases                                       $ (11,869,538.40)



Appendix III: Sale Transactions - July 1, 2008 to June 30, 2009


Trade Date Settlement Date Cusip/ Sedol               Security          Quantity         Price             Amount

Summer Quarter
 13-Aug-08       19-Aug-08      50075N104    Kraft Foods                    15,400   $     32.78       $   504,738.08
 13-Aug-08       19-Aug-08      963320106    Whirlpool                       5,400   $     82.23       $   444,032.82
 13-Aug-08       19-Aug-08      460146103    International Paper             9,200   $     29.02       $   266,993.20
 13-Aug-08       19-Aug-08      61945A107    Mosaic                          2,000   $    105.56       $   211,118.60
 13-Aug-08       19-Aug-08      260543103    Dow Chemical                    9,500   $     34.98       $   332,266.30
 13-Aug-08       19-Aug-08      458140100    Intel                          24,700   $     24.26       $   599,157.78
 13-Aug-08       19-Aug-08      80004C101    SanDisk                           300   $     16.28       $     4,884.00
 13-Aug-08       19-Aug-08      02364W105    America Movil                   3,900   $     49.14       $   191,658.87
 13-Aug-08       19-Aug-08      060505104    Bank of America                 3,800   $     29.12       $   110,657.14
 13-Aug-08       19-Aug-08      375558103    Gilead Sciences                 9,000   $     57.00       $   513,000.00
 13-Aug-08       19-Aug-08      302571104    FPL Group                         300   $     60.11       $    18,033.00
 28-Aug-08       3-Sep-08       749121109    Qwest Communications          102,900   $      3.78       $   388,889.97
Fall Quarter
  5-Dec-08       10-Dec-08      151290889    Cemex                          25,900   $      6.73       $   174,177.50
  5-Dec-08       10-Dec-08      18683K101    Cliffs Natural Resources        2,300   $     17.27       $    39,721.90
  5-Dec-08       10-Dec-08      369604103    General Electric               13,300   $     17.04       $   226,685.20
  5-Dec-08       10-Dec-08      590188108    Merrill Lynch                  14,300   $     11.65       $   166,657.92
  5-Dec-08       10-Dec-08      773903109    Rockwell Automation            12,200   $     26.37       $   321,667.64
  8-Dec-08       11-Dec-08      620076109    Motorola                       54,000   $      4.24       $   229,208.40
  8-Dec-08       11-Dec-08      803111103    Sara Lee                       51,300   $      9.37       $   480,496.32
  8-Dec-08       11-Dec-08      950891017    Weatherford Intl               30,500   $      9.95       $   303,410.95
  8-Dec-08       11-Dec-08      94973V107    WellPoint                       4,900   $     36.87       $   180,687.01
  8-Dec-08       11-Dec-08      060505104    Bank of America                19,100   $     16.89       $   322,522.60
Winter Quarter
 16-Mar-09       19-Mar-09      097023105    Boeing                          6,000   $     34.17       $   205,020.60
 16-Mar-09       19-Mar-09      086516101    Best Buy                       15,706   $     29.96       $   470,553.33
 16-Mar-09       19-Mar-09      38141G104    Goldman Sachs                   5,500   $     99.52       $   547,363.85



                                                           15
 16-Mar-09       19-Mar-09   084670108   Berkshire Hathaway           1    $ 84,600.00   $    84,600.00
 16-Mar-09       19-Mar-09   428236103   Hewlett Packard           6,097   $     29.06   $   177,161.75
 16-Mar-09       19-Mar-09   803111103   Sara Lee                 34,000   $      7.91   $   269,089.60
 17-Mar-09       20-Mar-09   478160104   Johnson & Johnson         3,000   $     49.63   $   148,892.70
 17-Mar-09       20-Mar-09   532457108   Eli Lilly                 7,985   $     30.89   $   246,673.42
 17-Mar-09       20-Mar-09   14149Y108   Cardinal Health           3,213   $     31.03   $    99,686.54
 16-Mar-09       19-Mar-09   002896207   Abercrombie & Fitch      16,900   $     21.65   $   365,900.21
 16-Mar-09       19-Mar-09   194162103   Colgate Palmolive         2,902   $     57.78   $   167,688.01
 16-Mar-09       19-Mar-09   693483109   Posco ADR                 4,000   $     61.98   $   247,917.20
Spring Quarter
 8-Jun-09        11-Jun-09   02364W105   American Movil           10,900   $     36.75   $   400,531.40
 8-Jun-09        11-Jun-09   055622104   BP PLC                    3,207   $     50.10   $   160,678.37
 8-Jun-09        11-Jun-09   718172109   Philip Morris             2,237   $     43.65   $    97,647.21
 8-Jun-09        11-Jun-09   084670108   Berkshire Hathaway           2    $ 89,129.95   $   178,259.90
 8-Jun-09        11-Jun-09   428236103   Hewlett Packard           2,777   $     37.05   $   102,890.50
 8-Jun-09        11-Jun-09   260543103   Dow Chemical             10,705   $     17.01   $   182,062.08
 8-Jun-09        11-Jun-09   14149Y108   Cardinal Health           2,654   $     30.14   $    79,989.21
 8-Jun-09        11-Jun-09   585055106   Medtronic                11,195   $     33.67   $   376,935.65
 8-Jun-09        11-Jun-09   478160104   Johnson & Johnson         3,324   $     55.81   $   185,512.44
 8-Jun-09        11-Jun-09   594918104   Microsoft                 6,661   $     21.94   $   146,142.34
 8-Jun-09        11-Jun-09   194162103   Colgate Palmolive         1,631   $     70.27   $   114,610.37
 8-Jun-09        11-Jun-09   076902509   Pengrowth Energy Trust   22,685   $      8.25   $   187,151.25
 8-Jun-09        11-Jun-09   086516101   Best Buy                   649    $     37.09   $    24,071.41
 8-Jun-09        11-Jun-09   94973V107   WellPoint                 2,849   $     47.57   $   135,526.93
 8-Jun-09        11-Jun-09   26441C105   Duke Energy              27,000   $     14.14   $   381,839.40
                                         Total Sales                                     $ 11,815,060.86




                                                     16
Appendix IV: Dividends Received - July 1, 2008 to June 30, 2009

                      Payment Date                      Security           Amount
                     07/02/2008        Hewlett-Packard Co.             $    1,912.00
                     07/15/2008        Cardinal Health, Inc.           $    1,232.00
                     07/15/2008        Motorola Inc.                   $    2,700.00
                     07/16/2008        Kraft Foods Inc                 $    4,158.00
                     07/25/2008        General Electric Co.            $    9,145.00
                     07/29/2008        Best Buy Co.                    $    3,172.00
                     07/30/2008        Dow Chemical Co.                $    3,990.00
                     08/04/2008        American Movil SA               $    7,672.91
                     08/15/2008        Colgate Palmolive               $    3,840.00
                     08/21/2008        Mosaic Co.                      $      100.00
                     08/25/2008        Oshkosh Truck Corp              $    1,835.50
                     08/28/2008        Goldman Sachs                   $    1,925.00
                     08/29/2008        Qwest Communications            $    8,232.00
                     09/01/2008        Intel Corp.                     $    7,364.00
                     09/02/2008        Cleveland Cliffs Inc            $      201.25
                     09/02/2008        ConocoPhillips                  $    4,418.00
                     09/02/2008        Rockwell Automation Inc         $    2,320.00
                     09/03/2008        Merrill Lynch & Company, Inc.   $    5,005.00
                     09/05/2008        Boeing Co.                      $    2,400.00
                     09/08/2008        BP PLC                          $    6,216.00
                     09/09/2008        Johnson & Johnson               $    8,142.00
                     09/11/2008        Microsoft Corp.                 $    4,037.00
                     09/16/2008        Abercrombie & Fitch             $    2,957.50
                     09/16/2008        Duke Energy Corp.               $    6,210.00
                     09/26/2008        Bank of America                 $   12,224.00
                     09/30/2008        PepsiCo, Inc.                   $    5,737.50
                     10/01/2008        Hewlett-Packard Co.             $    1,912.00
                     10/07/2008        Sara Lee Corp.                  $    8,956.50
                     10/15/2008        Cardinal Health, Inc.           $    1,232.00
                     10/15/2008        Motorola Inc.                   $    2,700.00
                     10/27/2008        General Electric Co.            $    9,145.00
                     10/28/2008        Best Buy Co.                    $    3,416.00
                     11/14/2008        Colgate Palmolive Co.           $    3,840.00
                     11/24/2008        Goldman Sachs                   $    1,925.00
                     11/25/2008        Oshkosh Truck Corp              $    3,095.50
                     12/01/2008        Cleveland Cliffs Inc            $      201.25
                     12/01/2008        ConocoPhillips                  $    4,418.00
                     12/01/2008        Intel Corp.                     $    3,906.00
                     12/03/2008        Merrill Lynch & Company, Inc.   $    5,005.00
                     12/05/2008        Boeing Co.                      $    2,400.00
                     12/08/2008        BP PLC                          $   11,004.00


                                                           17
12/08/2008   Rockwell Automation Inc    $    3,538.00
12/09/2008   Johnson & Johnson          $    8,142.00
12/10/2008   Eli Lilly & Co.            $    7,426.00
12/11/2008   Microsoft Corp.            $    4,771.00
12/16/2008   Abercrombie & Fitch        $    2,957.50
12/16/2008   Duke Energy Corp.          $    6,210.00
12/26/2008   Bank of America            $    6,112.00
01/02/2009   PepsiCo, Inc.              $    5,737.50
01/02/2009   Litigation - Enron         $    8,171.23
01/07/2009   Hewlett-Packard Co.        $    1,912.00
01/08/2009   Sara Lee Corp.             $    9,383.00
01/09/2009   Philip Morris Int'l        $    5,400.00
01/15/2009   Cardinal Health, Inc.      $    2,646.00
01/26/2009   General Electric Co.       $    5,456.00
01/27/2009   Best Buy Co.               $    3,416.00
01/28/2009   Comcast Corp               $    1,637.50
02/13/2009   Colgate Palmolive Co.      $    3,840.00
02/20/2009   Oshkosh Truck Corp         $    3,095.50
02/24/2009   Litigation - Honeywell     $       44.08
03/02/2009   ConocoPhillips             $    5,781.00
03/02/2009   Intel Corp.                $    3,906.00
03/02/2009   wells Fargo Co             $    5,168.00
03/06/2009   Boeing Co.                 $    2,520.00
03/06/2009   Litigation - Tyco Int'l    $   42,943.53
03/09/2009   BP PLC                     $   11,004.00
03/10/2009   Johnson & Johnson          $    8,142.00
03/10/2009   Eli Lilly & Co.            $    9,702.00
03/12/2009   Microsoft Corp.            $    4,771.00
03/16/2009   Duke Energy Corp.          $    6,210.00
03/17/2009   Abercrombie & Fitch        $    2,957.50
03/23/2009   Posco ADR                  $    4,194.66
03/31/2009   PepsiCo, Inc.              $    5,737.50
04/01/2009   Hewlett-Packard Co.        $    1,912.00
04/07/2009   Sara Lee Corp.             $    3,740.00
04/09/2009   Philip Morris Int'l        $    5,400.00
04/15/2009   Pengrowth Energy Trust     $    1,865.52
04/15/2009   Cardinal Health, Inc.      $    2,196.18
04/24/2009   Medtronic Inc              $    2,099.06
04/27/2009   General Electric Co.       $    5,456.00
04/27/2009   Canadian Pacific Railway   $    1,325.77
04/29/2009   Comcast Corp               $    1,768.50
04/30/2009   Dow Chemical Co.           $    5,439.00
05/07/2009   Best Buy Co.               $    1,217.16
05/08/2009   Oracle Corp.               $    1,921.00

                                   18
                     05/15/2009             Colgate Palmolive Co.                     $        2,947.12
                     05/15/2009             Pengrowth Energy Trust                    $        1,929.31
                     06/01/2009             ConocoPhillips                            $        5,781.00
                     06/01/2009             Hudson City Bancorp Inc.                  $        4,155.00
                     06/01/2009             Intel Corp.                               $        3,906.00
                     06/01/2009             Wal-Mart Stores, Inc.                     $        2,827.19
                     06/01/2009             Wells Fargo Co                            $          760.00
                     06/08/2009             BP PLC                                    $       14,540.40
                     06/09/2009             Johnson & Johnson                         $        7,203.00
                     06/10/2009             Eli Lilly & Co.                           $        5,789.35
                     06/15/2009             Pengrowth Energy Trust                    $        1,999.54
                     06/16/2009             Duke Energy Corp.                         $        6,210.00
                     06/17/2009             AIG (security litigation income)          $        7,392.20
                     06/18/2009             Microsoft Corp.                           $        4,771.00
                     06/22/2009             McDonald's Corp.                          $        2,390.00
                     06/30/2009             PepsiCo, Inc.                             $        6,075.00
                                            Total:                                    $       496,251.71


Appendix V: Net Interest Received - July 1, 2008 to June 30, 2009

                      Payment Date                             Security                       Amount
                      07/01/2008                SSGA Gov't Fund Money Market              $      781.49
                      08/01/2008                SSGA Gov't Fund Money Market              $    1,009.26
                      09/01/2008                SSGA Gov't Fund Money Market              $      595.24
                      10/01/2008                SSGA Gov't Fund Money Market              $      876.12
                      11/01/2008                SSGA Prime Money Market Fund              $      972.29
                      12/01/2008                SSGA Prime Money Market Fund              $      771.06
                      01/01/2009                SSGA Prime Money Market Fund              $      541.62
                      02/01/2009                SSGA Prime Money Market Fund              $      349.17
                      03/01/2009                SSGA Prime Money Market Fund              $      248.85
                      04/01/2009                SSGA Prime Money Market Fund              $      475.98
                      05/01/2009                SSGA Prime Money Market Fund              $      217.01
                      06/01/2009                SSGA Prime Money Market Fund              $      220.05
                                                Total                                     $     7,058.14



Appendix VI: Management Fees - July 1, 2008 to June 30, 2009

                                   Date                 Portfolio Value             Fee
                                   09/30/2008       $     20,589,488.23        $ 25,736.86
                                   12/31/2008       $     15,139,569.84        $ 18,924.46
                                   03/31/2009       $     13,569,804.10        $ 16,962.26
                                   06/30/2009       $     15,872,636.77        $ 19,823.42
                                                    Total                      $ 81,447.00


                                                                19
Appendix VII: Rosenfield Prize for Excellence in Security Analysis - July 1, 2008 to June 30, 2009

                        Quarter                            Winners & Reports
                                       Winner:       Michael Leesburg, Jr. (Oshkosh Corp.)
                        Summer 2008
                                       Runner up:    Alex Rinaldi (Qwest Communications)
                                       Winner:       Dave Jurgens (Goldman Sachs)
                        Fall 2008
                                       Runner up:    Robert Lazarony (WellPoint Inc.)
                                       Winner:       Joshua Bernath (Comcast Corp.)
                        Winter 2009
                                       Runner up:    Luke DiTomas (BP)
                                       Winner:       Nick V. Ferrugia (JP Morgan Chase & Co.)
                        Spring 2009
                                       Runner up:    Theo Constantinou (Alcoa Inc.)

Participating judges:

Summer 2008:    Dan Rosenfield, Jack Rosenfield, Jeff Oakley, John Farrall, Matt Falk, Chris Henneforth
Fall 2008:      Dan Rosenfield, Jack Rosenfield, Jeff Oakley, Bhavik Kothari, Andrew Karolyi
Winter 2009:    Dan Rosenfield, Jack Rosenfield, James Armstrong, Rafael Canario, Aaron Monroe
Spring 2009:    Dan Rosenfield, Jack Rosenfield, Adam Robertson, Jeff Oakley, Bhavik Kothari, Hiren Ghala




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