Babson Babson College FundCollege FundRick Spillane, CFARick Spillane, CFA

March 6, 2014March 6, 2014

Presentation OutlinePresentation Outline 1. My Background1. My Background 2. BCF 2013/20142. BCF 2013/2014 3. Investment Philosophy3. Investment Philosophy 4. Recruiting Strategy4. Recruiting Strategy 5. Q+A5. Q+A

My backgroundMy background

RPI, Chemical Engineer; Harvard MBARPI, Chemical Engineer; Harvard MBA Eaton Vance Management, 1977-1987Eaton Vance Management, 1977-1987

Analyst and Portfolio ManagerAnalyst and Portfolio Manager Fidelity Investments, 1988-2007Fidelity Investments, 1988-2007

Analyst and Portfolio ManagerAnalyst and Portfolio Manager Director of ResearchDirector of Research Chief Investment Officer (US and Europe)Chief Investment Officer (US and Europe) Head of Strategic Advisers (FidelityHead of Strategic Advisers (Fidelity’’s RIA)s RIA)

BABSON FACULTY 2007-PRESENTBABSON FACULTY 2007-PRESENT

What is BCF?What is BCF? BCF runs a portion of the Babson EndowmentBCF runs a portion of the Babson Endowment 23 Students (undergrads and MBA23 Students (undergrads and MBA’’s)s) The objective is to beat the S+P500The objective is to beat the S+P500

Long/ short portfolio of EquitiesLong/ short portfolio of Equities Fully invested (market timing not allowed)Fully invested (market timing not allowed) Heavy Focus on investment analysis (stock Heavy Focus on investment analysis (stock

picking)picking)

MEETINGS ARE MONDAY NIGHTS 6:30 TO 9:00 MEETINGS ARE MONDAY NIGHTS 6:30 TO 9:00 PM PM 6:30-7:30 Coaching session with Exec in 6:30-7:30 Coaching session with Exec in

ResidenceResidence 7:30-9:00 Portfolio overview and Stock Pitches7:30-9:00 Portfolio overview and Stock Pitches One Friday seminar per semesterOne Friday seminar per semester

Executives in ResidenceExecutives in Residence Warren Johnson, CFAWarren Johnson, CFA Hugh CrowtherHugh Crowther Jim Spencer, CFAJim Spencer, CFA Rick Mace Rick Mace Charles Mangum Charles Mangum Chris StixChris Stix Mike DunnMike Dunn Pratima AbichandaniPratima Abichandani Steve Petersen Steve Petersen Bill EbsworthBill Ebsworth

HighHigh

LowLow

LowLowProbability Of SuccessProbability Of Success

Impa

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HighHigh

Investment PhilosphyInvestment Philosphy

Stock SelectionStock Selection

Market TimingMarket Timing

Style TimingStyle Timing

Size Timing Size Timing

Sector SelectionSector Selection

SectorsSectors Executive Portfolio ManagersExecutive Portfolio Managers ConsumerConsumer FinancialsFinancials Basic Materials/EnergyBasic Materials/Energy IndustrialsIndustrials Healthcare Healthcare Utilities/TelecomUtilities/Telecom TechnologyTechnology Quantitative/Risk Management 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

Why you should do thisWhy you should do this You will learn a lot about fund management and You will learn a lot about fund management and

stock analysisstock analysis You are investing REAL MONEYYou are investing REAL MONEY You will work hard, but learn a lotYou will work hard, but learn a lot This is as close to real world investment This is as close to real world investment

management as possiblemanagement as possible You earn class credits for two semestersYou earn class credits for two semesters Enhanced Job Prospects in the Finance IndustryEnhanced Job Prospects in the Finance 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

Key dates Spring

Info session March 7 Applications due April 4 Interviews April 11

Application ProcessApplication Process Application on BCF WebsiteApplication on BCF Website

http://cutler.babson.edu/babsoncollegefund/http://cutler.babson.edu/babsoncollegefund/BCFApply.aspxBCFApply.aspx

Send to Karl Honerlow by FridayApril 4 at Send to Karl Honerlow by FridayApril 4 at noon.noon.

Interviews on Friday April 11Interviews on Friday April 11 Overseas interviews done via SkypeOverseas interviews done via Skype You start immediatelyYou start immediately NOTE: You must take or have taken FIN 7503 NOTE: You must take or have taken FIN 7503

(Equities) if you are an MBA student!! (Equities) if you are an MBA student!!

Questions???Questions???