The Collaborative International Dictionary of English v.0.48:

Sephardic \Se*phar"dic\, a. [From Sephardim, a name applied to
   the Spanish Jews, fr. Sephard, name of a place where Jews
   were held in captivity (--Ob. 20).]
   Of, pertaining to, or designating, the Jews (the Sephardim,
   also called Spanish or Portuguese Jews) descended from Jewish
   families driven from Spain by the Inquisition.
   [Webster 1913 Suppl.]