1. Babson College Fund Rick Spillane, CFA March 6, 2014

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

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

4. What is BCF?  BCF runs a portion of the Babson Endowment  23 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

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

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

7. Sectors  Executive Portfolio Managers  Consumer  Financials  Basic Materials/Energy  Industrials  Healthcare  Utilities/Telecom  Technology  Quantitative/Risk Management

8. 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

9. 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 Finance Industry

10. 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

11. Key dates  Spring  Info session March 7  Applications due April 4  Interviews April 11

12. Application Process  Application on BCF Website  http://cutler.babson.edu/babsoncollegefund/BCFA pply.aspx  Send to Karl Honerlow by FridayApril 4 at noon.  Interviews on Friday April 11  Overseas interviews done via Skype  You start immediately  NOTE: You must take or have taken FIN 7503 (Equities) if you are an MBA student!!

13. Questions???