Information Session
BABSON COLLEGE FUND
Patrick Gregory, CFA
Fellow, Stephen D. Cutler Center for Investments and Finance
Director, Babson College Fund
Lecturer, Finance Division
Babson College
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Babson College Fund
Agenda
1
What is the Babson College Fund (BCF)?
2
Program Director
3
Executives in Residence
4
Why Should I Participate?
5
6
Recruiting Process
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Q&A
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BABSON COLLEGE FUND
WHAT IS BCF?
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What is BCF?
BABSON COLLEGE FUND
 BCF runs a portion of the Babson Endowment
 Long/ short portfolio of equities
 25 Students
 Undergrads and grads
 The objective is to beat the S&P 500
 Heavy focus on fundamental analysis (stock picking)
 Meetings are TUESDAY 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
 Investment Seminar
 1-2 Friday seminars per semester
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Sectors
What is BCF?
BABSON COLLEGE FUND
Executive Portfolio Managers
Sector Coverage
 Consumer
 Materials/Energy
 Industrials
 Healthcare
 Utilities/Telecom
 Technology
 Financials
Quantitative/Risk Management Team
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What do you do?
What is BCF?
BABSON COLLEGE FUND
Responsibilities
 Manage sector
 Work in a team of 2-3 analysts
 Manage sector positions (buying and selling as needed)
 Pitch 2 group ideas and 2 individual ideas per semester
 Conduct a sector review at the end of the semester
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BABSON COLLEGE FUND
Investment Thesis
Performance 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
 To do so, 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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BABSON COLLEGE FUND
Investment Process
Idea Generation: Use proprietary
screens and broad network to identify
potential investment opportuniities
Step 1
Step 2
Portfolio Construction: Construct
concentrated portfolios of 30-40
securities
Step 3
Investment Analysis: Employ
rigorous, value-based stock
selection grounded in fundamental
analysis
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Sell Discipline: Utilize a
well-defined sell discipline
Step 4
Step 5
Risk Controls: Limit
downside risk through
thorough and disciplined
analysis, sector and
position size limits, and
trade management
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BABSON COLLEGE FUND
PROGRAM DIRECTOR
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My background
Program Director
BABSON COLLEGE FUND
Patrick Gregory, CFA
 Babson College, 2015-Present
 Fellow, Cutler Center for Investments and Finance
 Lecturer, Finance Division
 FM Global, 2007-2015
 Portfolio Manager
 Senior Analyst
 Bentley College, 1998-2007
 Managing Director, Hughey Center for Financial Services
 Manager, Trading Room
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BABSON COLLEGE FUND
EXECS IN RESIDENCE
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Execs in Residence
BABSON COLLEGE FUND
Current and Former Portfolio Managers
 Warren Johnson, CFA
 Hugh Crowther, CFA
 Mike Dunn
 Jim Spencer, CFA
 Paul Washburn, CFA
 John Hickling
 Mike Mach
 Pratima Abichandani
 Steve Petersen
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BABSON COLLEGE FUND
WHY PARTICIPATE?
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Why you should do this
Why Should I Participate?
BABSON COLLEGE FUND
 You will learn A LOT about stock analysis and fund
management
 You are investing REAL MONEY
 You will work hard, but develop REAL WORLD
EXPERIENCE
 You earn class credits for two semesters
 ENHANCED JOB PROSPECTS in the Investment
Management Industry
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Visits/ Guest Speakers
Why Should I Participate?
BABSON COLLEGE FUND
Networking Opportunities
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
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BABSON COLLEGE FUND
RECRUITING PROCESS
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Recruiting Process
Recruiting Process
BABSON COLLEGE FUND
Staggered Recruiting
 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 and blended MBA's
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Recruiting Process
Recruiting Process
BABSON COLLEGE FUND
Key Dates - SPRING 2016
Info session on Wednesday, June 29
Applications by midnight on Tuesday, July 12
Interviews on Wednesday, July 20
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Recruiting Process
Recruiting Process
BABSON COLLEGE FUND
Applications
 Start immediately
 Applications are on the BCF Website
 http://cutler.babson.edu/babsoncollegefund/BCFApply.aspx
 Send completed applications to Karl Honerlaw by
Tuesday,July 12 (midnight)
 Pre- or Co-req: You must take or have taken FIN 7503
(Equity Investments) if you are an MBA student!
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Do You Have
Any Questions?
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