Newswise — Babson College Professor Joel Shulman has created a stock Mutual Fund of Global Entrepreneurs. The new mutual fund, EntrepreneurShares, is based on the entrepreneurial characteristics of business managers at more than 400 of the best-managed, publicly-traded, entrepreneurial companies in the world. Visit http://entrepreneurshares.com/
“The EntrepreneurShares Global Fund hinges on a proprietary set of 15 characteristics deemed to make a company entrepreneurial,” says Shulman, “The Mutual Fund follows a 5-year track record of privately managed funds that has significantly outperformed peer benchmarks.”
“Global Entrepreneurs have generated an annualized rate of return over 11% for the past 5 years, including the worst bear market since the Great Depression.”
15 Attributes That Define Entrepreneurial From Non-Entrepreneurial Companies
1. Organic growth opportunities
2. Above average ownership stake among key stakeholders
3. Low SG&A
4. Above average return on invested capital
5. Sustainable growth
6. Manageable debt
7. Active strategic alliances/partnerships/licensing
8. Aligned executive compensation packages
9. Low executive turnover
10. Transparent governance
11. Long duration of key managers
12. Low or no dividends
13. Family involvement
14. High EBITDA Margin %
15. Other significant stakeholder relationship
Shulman and faculty researchers at Babson College found that organizations focused on entrepreneurial culture, organic growth, and aligned compensation trump corporate bureaucracy on a regular basis.
The Mutual Fund follows the Babson Professor’s Index of Global Entrepreneurs published daily by S&P and displayed on Bloomberg as EsharesG. There are 5 other subgroups of Entrepreneurs shown on Bloomberg with the following tickers:
• Global Entrepreneurs (EsharesG)
• US Large Cap Entrepreneurs (EsharesL)
• US Mid Cap Entrepreneurs (EsharesM)
• US Small Cap “Entrepreneurs (EsharesS)
• International Entrepreneurs (EsharesI)
• Emerging Market Entrepreneurs (EsharesE)
The EntrepreneurShares Mutual Fund is based on the Index of Global Entrepreneurs featured in the Fall 2010 issue of The Journal of Index Investing – article: A New Investment Style: Featuring an Index of Entrepreneurial Companies.
Dr. Shulman, an Associate Professor of Entrepreneurship at Babson, is a Chartered Financial Analyst and a Certified Management Accountant. He holds an MPA from Harvard’s Kennedy School of Government in addition to his Ph.D. in Finance. He previously directed the Shulman Review Program which provided training for investment professionals throughout the world preparing for the CFA examination. He is author or coauthor of numerous academic articles and books including Encyclopedia of Business, Leasing for Profit, Alternatives to Conventional Financing, Planning Cash Flow, How to Effectively Manage Corporate Cash, A Manager's Guide to Financial Analysis, The Job of Corporate Controller, and How to Manage and Evaluate Capital Expenditures. Dr. Shulman has consulted for small entrepreneurial firms and large corporations, including Coldwell Banker, Ford Motor Company, Freddie Mac, K Mart, Merrill Lynch, Salomon Brothers, Sears, and UNISYS. He was previously an active consultant for the World Bank, assisting with the development of capital markets in Central Asia and republics of the former Soviet Union.
Babson College in Wellesley, Mass., is recognized internationally as a leader in entrepreneurial management education. Babson grants BS degrees through its innovative undergraduate program, and grants MBA and custom MS and MBA degrees through the F.W. Olin Graduate School of Business at Babson College. Babson Executive Education offers executive development programs to experienced managers worldwide. For information, visit www.babson.edu.