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The Babson College Fund (BCF) is an academic program in
which specially selected students manage a portion of the Babson College endowment. The portfolio is entirely equity, comprising four sectors: Basic Materials, Consumer Goods and Services, Industrials, and Technology. The investment style of the Babson College Fund is to aggressively apply conservative investment principles. That is, the students conduct intensive fundamental and quantitative research to identify stocks that are good values at their current market prices. Selected stocks are then overweighted within a diversified portfolio. Managers monitor the fund's overall risk and the sources of risk, aiming to keep risk and tracking error within allowable bounds. Managers budget the allowable risk to the active positions expected to add the most value.
Investment Philosophy: "We believe there are opportunities for us to generate superior returns by exploiting transient mispricing of securities and equity sectors when taking positions in companies with compelling market positions."Authored and adopted by the 2007-8 BCF managers.
Featured on The Street: TheStreet.com published these stories about the Babson College Fund: Babson College Fund's Winning Handbook, 3/28/08
Ag Stock-Picking: Babson vs. Boston on the Best Plays 4/18/08
Featured in The Financial Times: The Finanical Times published this story about the Babson College Fund:
Success at the Research Challenge: On 26 February 2008, the Babson College team won first place in the New England Investment Research Challenge (NEIRC) sponsored by the Boston Security Analysts Society. This is the second consecutive year that the Babson College team of investment analysts took the top honors in the BSAS competition.
The competition involved the team conducting an equity analysis of Cabot Corporation (CBT), submitting a written report, and making a presentation before the judges and invited guests from the New England investment analyst community. This year, teams from MIT, Boston College, Boston University, University of Maine, UMass-Boston, and Bryant University participated in the NEIRC.
Babson’s team was composed of Jason Dieffenbacher, Vinay Kaza, Maan Bsat, Karen Panyalertrat, and Roman Gramc. The team members are MBA students and Babson College Fund managers. Executive-in-Residence Warren Johnson, CFA, and Nicole Jackman, CFA of Wellington Management served as coaches.
The winning research report is available here:
Links to press coverage of the event and BCF's participation:
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