Babson College Fund Rick Spillane, CFA June 2, 2015

Presentation Outline

 1. My Background  2. BCF 2015/2016  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  Analyst and Portfolio Manager    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 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

Executives in Residence

         Warren Johnson, CFA Hugh Crowther Jim Spencer, CFA Rick Mace John Hickling Chris Stix Mike Dunn Pratima Abichandani Steve Petersen

Investment Philosophy

High Low Low Market Timing Style Timing Size Timing Sector Selection Probability Of Success Stock Selection High

Sectors

         Executive Portfolio Managers Consumer Basic Materials/Energy Industrials Healthcare Utilities/Telecom Technology Financials 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 in the fall  Guest speakers at the meetings. In the last 2 years 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

Key dates

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Summer 2016

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Info session June 2nd Applications by midnight on Thursday, July 9th Interviews Monday, July 13th

Application Process

 Application on BCF Website  http://cutler.babson.edu/babsoncollegefund/BCFApply.a

spx  Send to Karl Honerlaw by Thursday, July 9 th at midnight  Interviews on Monday, July 13th  You start immediately  NOTE: You must take or have taken FIN 7503 (Equities) if you are an MBA student!!

Questions???