1. BABSON COLLEGE FUND Information Session Professor Patrick Gregory, CFA
Managing Director, Stephen D. Cutler Center for Investments and Finance
Director, Babson College Fund
Babson College

2. 1 2 3 4 5 6 Babson College Fund Agenda
What is the Babson College Fund (BCF)? 2
Who is the Program Director? 3
Who are the Executives in Residence? 4
Why Should I Participate? 5
What’s the recruiting process like? 6
Q&A
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3. BABSON COLLEGE FUND
What is bcf?
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4. What is BCF? Students manage a portion of the College’s endowment
BABSON COLLEGE FUND
Students manage a portion of the College’s endowment
Long/ short portfolio of equities
25 students (grad and undergrad)
Meetings are TUESDAY nights 6:30 - 9:00pm
6:30-7:15 – Coaching session with Execs in Residence
7:15-7:45 – Portfolio review
7:45-9:00 – Stock pitches
Investment Seminar
1-2 Friday seminars per semester
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5. BABSON COLLEGE FUND Investment Process
Investment Strategy
The Babson College Fund employs a fundamental, bottoms-up strategy defined by rigorous analysis and careful risk management
Our objective is to generate annual returns exceeding those of the S&P 500 over a market cycle with a lower level of risk
We emphasize a deep understanding of our portfolio companies and sound valuation work
With this approach, we should be able to preserve the endowment while generating impressive compound returns over time
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6. BABSON COLLEGE FUND Investment Process Step 1 Step 2 Step 3 Step 4
Idea Generation: Use proprietary screens and broad network to identify potential investment opportuniities
Portfolio Construction: Construct concentrated portfolios of securities
Sell Discipline: Utilize a well-defined sell discipline
Step 1
Step 2
Step 3
Step 4
Step 5
Investment Analysis: Employ rigorous, value-based stock selection grounded in fundamental analysis
Risk Controls: Limit downside risk through thorough and disciplined analysis, sector and position size limits, and trade management
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7. What is BCF? Students are divided into three teams
Sectors
What is BCF?
BABSON COLLEGE FUND
Students are divided into three teams
Lead Portfolio Managers (2)
Sector Analyst/PM (22)
Materials/Energy
Industrials
Financials/REITs
Healthcare
Consumer Discretionary
Consumer Staples
Technology/Telecom
Quantitative/Risk Management Team (1)

8. What is BCF? Lead Portfolio Managers What do you do?
BABSON COLLEGE FUND
Lead Portfolio Managers
Develop portfolio strategy, philosophy, and tactics
Organize team meetings, programs, and events
Review the weekly and YTD performance of the fund, outlining areas of emphasis for the sector teams
Initiate mandatory reviews where appropriate (e.g., stock approaching price target or 52 week high, stocks lagging the benchmark, etc.)
Prepare up to 2 research reports per member
Prepare the semester report summarizing the fund for distribution to the Trustees

9. What is BCF? Sector Analysts/Portfolio Managers What do you do?
BABSON COLLEGE FUND
Sector Analysts/Portfolio Managers
Manage the holdings in their economic sector, recommending the specific securities that should be included in the portfolio
Determine the weight of portfolio holdings (explicit bets) and defend implicit bets we have vs. the benchmark
Prepare 3 individual stock recommendations per semester, which includes a comprehensive report and presentation
Maintain the stock ratings, target prices, and other data on holdings
Reviewing the quarterly earnings call for each company
Preparing a semester report for the sector

10. What is BCF? Quant Team What do you do?
BABSON COLLEGE FUND
Quant Team
Source investment ideas by developing and backtesting equity screens in conjunction with the sector teams
Leverage Bloomberg’s analytical tools to evaluate the portfolio positions and make recommendations designed to improve performance and/or reduce risk
Pitch one stock per semester for inclusion in the portfolio
Prepare and analyze weekly, monthly, and annual performance reports
Ensure all trades are reflected in the Bloomberg each week
Assist the Portfolio Managers in preparing the semester report

11. BABSON COLLEGE FUND
PROGRAM DIRECTOR
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12. Program Director Patrick Gregory, CFA (pgregory@babson.edu)
My background
Program Director
BABSON COLLEGE FUND
Patrick Gregory, CFA
Managing Director of the Stephen D. Cutler Center for Investments and Finance, Director of the Babson College Fund, and professor in the Finance Division
Member of the Investment Committee of the Board of Trustees, which manages the College’s endowment
Former institutional portfolio manager with experience managing the Healthcare and Technology, Media, and Telecom (TMT) sectors of a $6 billion equity fund
Co-author of Why Stocks Go Up and Down

13. BABSON COLLEGE FUND
Execs in residence
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14. Execs in Residence
BABSON COLLEGE FUND
Warren Johnson, CFA
Jim Spencer, CFA
Pratima Abichandani
John Hickling, CFA
Holland Ward
Polly Sung, CFA
Paul Washburn, CFA
Hugh Crowther, CFA
Mike Dunn, CFA
Brittany Bascom
Average of 29 years experience as analysts and portfolio managers
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15. BABSON COLLEGE FUND
Why participate?
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16. Why Should I Participate?
Why you should do this
Why Should I Participate?
BABSON COLLEGE FUND
You will learn A LOT about security analysis and fund management
You will work hard, but develop REAL WORLD EXPERIENCE
You are managing REAL MONEY
You are being MENTORED by talented professionals
You earn class credits for two semesters
ENHANCED JOB PROSPECTS

17. Visits/ Guest Speakers
Why Should I Participate?
BABSON COLLEGE FUND
Networking Opportunities
Guest speakers over the last 2 years have included…
Hedge Fund managers (3)
Fed official, former BCF student
Investment Strategist from BNY Mellon
Mutual Fund Manager (2)
Communications Coach
Other professional events
Boston Investment Conference
CFA Equity Research Challenge
Rotman International Trading Competition

18. Why Should I Participate?
Why you should do this
Why Should I Participate?
BABSON COLLEGE FUND
Enhanced Job Prospects
Recent program participants are working at…
Goldman Sachs
Rothschild & Co.
Credit Suisse
Lazard
John Hancock
BB&T Capital Markets
Bank of America Merrill Lynch

19. BABSON COLLEGE FUND
Recruiting process
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20. Recruiting Process Applications Recruiting Process
BABSON COLLEGE FUND
Applications
Applications are on the BCF Website
Send completed applications to Adele Panichella by Thursday, November 10 at midnight
Interviews on Tuesday, November 14

21. Do You Have Any Questions?
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