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.

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