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Could you run your own investment fund … in college?
Ben Sender, a senior at Princeton University and founder of student-run investment fund Effective Altruism Investments (EAI), does just that. EAI currently manages $100,000 and pursues "objectively good returns for objectively good causes," Sender says.
We aim for overlooked assets that we can know better than the majority of market players or small illiquid assets that institutions cannot enter," says Sender.
To that end, the students invest money in a shifting balance of stocks, ETFs, options and peer-to-peer lending. Because of the fund's size, the students have to make unconventional choices to stay in the green, which has helped them so far make a profit every quarter. One of EAI's best moves was shorting Snap before its precipitous fall starting in May, which created a 107 percent gain for the investment fund.
Instead of keeping all of the profits, EAI allocates one-fifth of its gains towards charitable causes through GiveWell.com, like the Against Malaria Foundation and Give Directly.