Babson College Fund Rick Spillane, CFA July 8, 2013

Presentation Outline 1. My Background 2. BCF 2013/2014 3. Investment Philosophy 4. Recruiting Strategy 5. Q+A

My background RPI, Chemical Engineer; Harvard MBA Eaton Vance Management, 1977-1987 Analyst and Portfolio Manager Fidelity Investments, 1988-2007 Director of Research Chief Investment Officer (US and Europe) Head of Strategic Advisers (Fidelity’s RIA) BABSON FACULTY 2007-PRESENT

What is BCF? BCF runs a portion of the Babson Endowment 22 Students (undergrads and MBA’s) The objective is to beat the S+P500 Long/ short portfolio of Equities Fully invested (market timing not allowed) Heavy Focus on investment analysis (stock picking) MEETINGS ARE MONDAY NIGHTS 6:30 TO 9:00 PM 6:30-7:30 Coaching session with Exec in Residence 7:30-9:00 Portfolio overview and Stock Pitches One Friday seminar per semester

Executives in Residence Warren Johnson, CFA Hugh Crowther Jim Spencer, CFA Rick Mace Charles Mangum Chris Stix Mike Dunn Pratima Abichandani Steve Petersen

Investment Philosphy Market Timing High Style Timing Size Timing Impact On Return Sector Selection Stock Selection Low Probability Of Success Low High

Annual data from 1986 through 2008 The State of the Market December 21, 2004 Annual data from 1986 through 2008 This document contains time-sensitive proprietary and confidential information that is the sole property of Fidelity Management & Research Company (FMRCo). Any opinions expressed in this material are those of the author only, not of Fidelity Investments, and are subject to change at any time due to market or other conditions. Past performance is not a guarantee of future results, is shown for informational purposes only, should not be construed as an offer or recommendation for any security, and is not indicative of any specific security performance. Fidelity Investments

Sectors Executive Portfolio Managers Finance (NEW SECTOR) Consumer Basic Materials/Energy Industrials Healthcare Utilities/Telecom Technology Quantitative/Risk Management

What do you do? Follow your sector closely Buy and sell stocks in your sector Work in a team of 1-3 other managers Write 3 research reports per semester Write a Semester Report/Sector Overview

Visits/ Guest Speakers Teams met with a counterpart at Fidelity this fall Guest speakers at the meetings. In the last year the following have been guest speakers Fidelity CIO and Director of Research Hedge Fund managers (3) President of Northfield Fed official, former BCF student Strategist from BNY Mellon

Why you should do this You will learn a lot about fund management and stock analysis You are investing REAL MONEY You will work hard, but learn a lot This is as close to real world investment management as possible You earn class credits for two semesters Enhanced Job Prospects in the Investment Management Industry

Recruiting Approach Designed to “even out” the number of students on the fund during the year so everyone does not stop and start at the same time Fall: recruit 2 year MBA’s, Junior Undergrads with a December graduation date, Evening MBA’s Spring: Junior Undergrads with a May graduation date and Evening MBA’s Summer: One Year MBA’s/Evening MBA’s

Application Process Application on BCF Website http://cutler.babson.edu/babsoncollegefund/BCFApply.a spx Send to Karl Honerlaw by Wednesday, July 17th at noon. Interviews on Monday July 22 You start immediately NOTE: You must take or have taken FIN 7503 (Equities) if you are an MBA student!!

Questions???