8/17/2019 F321_F319_F329 Term Sheet 2016

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To: First-Year MBAs  Pre-Registration for Fall 2016By: Brian Rose, MBA ’14, Viking Global   Soren Sudhof, MBA ’16, Maverick Capital

Ryan Lanpher MBA ’14, Permira PE  Mike Ding, MBA ’16, Warburg Pincus

 Note: For MBA1s interested in investing, a pre-reg BBL for Fall 2016 will be held on Monday, April 25th a

12:15pm in M109 with Professor Jack McDonald and Lecturer John Hurley of the Cavalry funds. 

TERM SHEET

Professor McDonald’s Offering of F321 and F319/F329 in Fall 2016

Professor McDonald’s Investment courses, F321 and F319/329, are linked courses that offer students in-depth exposure tothe practical and conceptual factors used in the valuation and selection of investments. This will be the 49 th year thaProfessor McDonald has taught this subject matter at the GSB, and the format of these courses has evolved over the years

That in mind, this “Term Sheet” summarizes 1) What Professor McDonald’s classes are, 2) How they complement otherclasses taught at the GSB, 3) Course requirements, and 4) Registration tactics.

1)  What are F321 and F319/329? These classes, which are taken concurrently during the Fall, comprise an intensiveand expansive introduction to the world of active fundamental value investing: 

a. F321 (I nvestment M anagement and Entr epreneur ial F inance) is a 3-unit graded course that addresses real worldapplications of essential analysis and valuation tools, and teaches the fundamental skills necessary to evaluate

investment opportunities. John Hurley, alumnus of the course and founder of Cavalry funds, assists in teaching. 

b. F319 & F329 (Pr ivate Equi ty & I nvestment Seminar ) is a 4-unit course (pass/fail) that meets twice per week(Tu/Th 1:30-2:50 PM) throughout the quarter. It builds upon F321 as students delve into specifictopics within private equity and early stage investing (F319) and hedge funds, mutual funds, and other publicequity investing (F329). Stuart Klein, an alumnus of the course, founder of SuperMac Technology and an angel

investor through his family office, assists in the Seminars. The context is global in F321, F319 and F329.

***F321 will be offered 3:00-5:50PM M/Tu/W/Th/F in the first and eighth weeks of the quarter, and F319/F329

Tu/Th from 1:30-2:50 PM starting Sept. 27. Class is Mandatory on the Monday and Tuesday of Week 1 (9/26 & 9/27)and the Thursday and Friday of Week 8 (11/17 & 11/18). An optional class will also meet Wed., Oct. 5,

 3-6pm.

Both courses are taught through a combination of 1) Prof. McDonald’s original case studies, 2) lecture-discussions led

 by Prof. McDonald, and 3) guest cases and lectures by more than 40 outstanding investors, most of whom are alumnof his Investment courses. Students enrolled in F319 and F329 have exposure to the same investors.

2)  How do these courses complement other Finance classes taught at the GSB?   The GSB offers a wide range ohigh-quality Finance courses. Prof. McDonald’s offerings stand out in a number ways: 

a. Theoretical underpinning: For 5 decades, Prof. McDonald has taught that the efficient market hypothesis –  which

asserts that investors can only beat the market by taking more risk or through luck  –   is incomplete. His classes begin from the assumption that through disciplined and thoughtful security analysis, skilled investors can apply

fundamental analysis to constructing portfolios that outperform market benchmarks significantly over time. 

b. Scope: With the time afforded by 7 units of academic credit, these courses cover a wider range of topics thantypical –  from growth stage to LBOs to long/short equity to public debt to distressed and event-driven investing. 

c. Guests: While many GSB classes benefit from the generosity of alums who return to speak to students, ProfessorMcDonald’s offerings expose students to an extraordinarily high number of outstanding investors (more than 40)over the course of the quarter; each student may learn how his/her own investment views fit in a bigger picture.

3)  What are the course requirements? Besides 1) the expectation that students prepare for and attend class, as welas participate regularly, 2) F321 will have a required Research Report on a publicly traded company and 3)F319/F329 will have one take-home Midterm Assignment and one required paper. There are no final exams.

4)  What are the tactics for registering? Those interested in fundamental value investing may sign up for one of two7-unit co-requisites: Either a) F321.01 + F319; or b) F321.02 + F329, both a) and b) are offered at the same times. See*** above. These classes have historically been oversubscribed, so students with particularly high interest in investing

and entrepreneurial finance are advised to rank these courses accordingly during the registration process. 

8/17/2019 F321_F319_F329 Term Sheet 2016

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