1. YOUR LOGO BABSON COLLEGE FUND Patrick Gregory, CFA Fellow, Stephen D. Cutler Center for Investments and Finance Lecturer, Finance Division Babson College Information Session

2. YOUR LOGO Page  2 Babson College Fund Program Director What is Babson College Fund? Executives in Residence Why Should I Participate? Recruiting Process 1 2 3 4 5 Q&A 6 Agenda

3. YOUR LOGO PROGRAM DIRECTOR BABSON COLLEGE FUND Page  3

4. YOUR LOGO My background  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 Program Director BABSON COLLEGE FUND

5. YOUR LOGO WHAT IS BCF? BABSON COLLEGE FUND Page  5

6. YOUR LOGO Page  6 What is BCF?  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 BABSON COLLEGE FUND

7. YOUR LOGO What do you do?  Responsibilities  Manage sector  Work in a team of 1-3 analysts  Manage sector positions (buying and selling as needed)  Pitch 3 new ideas per semester  Conduct a sector review at the end of the semester What is BCF? BABSON COLLEGE FUND

8. YOUR LOGO Sectors  Executive Portfolio Managers  Sector Coverage  Consumer  Materials/Energy  Industrials  Healthcare  Utilities/Telecom  Technology  Financials  Quantitative/Risk Management Team What is BCF? BABSON COLLEGE FUND

9. YOUR LOGO Page  9 BABSON COLLEGE FUND 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 are able to preserve the endowment while generating impressive compound returns over time Investment Thesis

10. YOUR LOGO Page  10 BABSON COLLEGE FUND Idea Generation: Use proprietary screens and broad network to identify potential investment opportuniities Portfolio Construction: Construct concentrated portfolios of 30-40 securities Investment Analysis: Employ rigorous, value-based stock selection grounded in fundamental analysis Sell Discipline: Utilize a well-defined sell discipline Step 1 Step 2 Step 3 Step 4 Investment Process Step 5 Risk Controls: Limit downside risk through thorough and disciplined analysis, sector and position size limits, and trade management

11. YOUR LOGO Page  11 StrategyLimitation Sector ExposureNeutral Security Exposure2% active LiquidityNumber of days to close out position utilizing 25% of ADV LeverageNone Stop Loss20% from initial purchase price BABSON COLLEGE FUND Risk Management

12. YOUR LOGO EXECS IN RESIDENCE BABSON COLLEGE FUND Page  12

13. YOUR LOGO Page  13 Execs in Residence  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 BABSON COLLEGE FUND

14. YOUR LOGO WHY PARTICIPATE? BABSON COLLEGE FUND Page  14

15. YOUR LOGO Why you should do this  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 Why Should I Participate? BABSON COLLEGE FUND

16. YOUR LOGO Visits/ Guest Speakers 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 Why Should I Participate? BABSON COLLEGE FUND

17. YOUR LOGO RECRUITING PROCESS BABSON COLLEGE FUND Page  17

18. YOUR LOGO Recruiting Process  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 Recruiting Process BABSON COLLEGE FUND

19. YOUR LOGO Recruiting Process Key Dates - SPRING 2016 Info session on Monday, March 7 Applications by midnight on Thursday, March 24 Interviews on Friday, April 1 Recruiting Process BABSON COLLEGE FUND

20. YOUR LOGO Recruiting Process  Applications  Start immediately  Applications are on the BCF Website  http://cutler.babson.edu/babsoncollegefund/BCFApply.aspx  Send completed applications to Karl Honerlow by Thursday, March 24 (midnight)  Pre- or Co-req: You must take or have taken FIN 7503 (Equity Investments) if you are an MBA student! Recruiting Process BABSON COLLEGE FUND

21. YOUR LOGO Page  21 Do You Have Any Questions?