F.W. Olin Graduate School of Business Students have a special opportunity to be involved in the financial investments at Babson College. The Babson College Fund (BCF) is an academic program in which specially selected students from both the Undergraduate and Graduate schools. These selected students manage a portion of the Babson College endowment. The program builds students’ investment research and portfolio management skills and offers practical experience.
The investment style of the Babson College Fund (BCF) is to aggressively apply conservative investment principles. The students conduct intensive fundamental and quantitative research to identify stocks that are good values at their current market prices. Selected stocks are then over weighted 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.
The student-run fund is an accredited course offered to a select group of undergraduate and MBA students and is guided by faculty and Executives in Residence. It has beaten the S&P 500 for the seven-year period ending May 8, 2014, surpassing some professional managers hired to manage the equity portion of the Babson endowment.
The course is held in the heart of Babson’s Stephen D. Cutler Center for Investments and Finance. The investment committee trustees and the program director select managers. The program is available to students from all Babson programs, both undergraduate and MBA. However, regular on-campus attendance of meetings is required of BCF managers.
Applications for the fall program are being accepted now. An information session on the program will be held on November 5, 2015 at 5:00 p.m. on Babson’s campus. Applications must be submitted by November 21, 2014 at noon.