Babson College Fund

The Babson College Fund (BCF) is an accredited course in which specially selected students from both the undergraduate and graduate schools to manage $4 million of the Babson College endowment. The program is for highly self-motivated individuals with a strong interest in finance and investments. Participation requires a two-semester commitment.

The program seeks to provide a rich educational experience through the development of investment research skills and the acquisition of portfolio management experience. These skills and experience are highly valued by employers in the investments industry.

Apply

Review the timeline, application packet, and interview process for the program. 

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Faculty, Advisors, and Mentors

Meet the industry professionals who generously volunteer their time and energy to enrich the educational experience for the students through mentorship.

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Managers

Meet our current BCF managers, self-motivated students with a demonstrated interest in investments and a willingness to dedicate the requisite time and effort needed to succeed.

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Program Objectives

The investment objective of the Babson College Fund is to outperform the S&P 500 Index. Managers conduct extensive fundamental and quantitative research to identify stocks that are attractively priced at their current market value. Selected stocks are then combined in a diversified portfolio. The managers monitor the fund's performance and 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.

The sector teams are responsible for one or more of the Global Industry Classification System (GICS) sector. The sectors are grouped as follows:

  • Quantitative/Risk Management
  • Consumer Staples
  • Consumer Discretionary
  • Financials/REITs
  • Healthcare
  • Energy/Basic Materials
  • Information Technology
  • Communication Services 
  • Industrials

 

Class Guest Speakers 

Mohnish Pabrai is the managing partner of Pabrai Investment Funds which he started in 1999 with $1 million. The company has ballooned to $469 million due to its Munger/Buffett-focused value investing style. He is now extensively involved in philanthropy with the Dakshana Foundation where he provides educational opportunities for gifted but underprivileged children worldwide. Watch Video »

Dave Lundgren, CMT, CFA is a 30-year investment industry veteran, with a focus on technical analysis strategies, particularly momentum and trend following. He has held both analyst and portfolio manager positions at several major investment firms and has also started several research and investment firms. Watch Video »

Dennis Hong, CEO of ShawSpring Partners made a guest appearance in a recent Babson College Fund class. Dennis started his own hedge fund right out of business school and has grown his fund to over $500 million assets under management. He’s also seen superior returns investing in global technology companies. Watch Video »


 

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Investment Advice from Students with the Babson College Fund

In 2020, the Babson College Fund produced a 28% return on investment, outperforming the S&P 500 by 1,059 basis points. Based on Morningstar data, the students’ performance would place in the 99th percentile of large-cap blend managers.

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