Yale students make an investment in education

In the early '80s, Yale alumni donors earmarked $85,000 of the Yale endowment to fund a student-run investment group. Now, nearly two decades later, the Yale College Student Investment Group has increased its portfolio to $130,000--and has gained valuable real-world knowledge along the way.

"We aren't so concerned with long-term growth but with the learning experience," Brian Marshall, head of the group's board of directors, said.The 30-member group meets weekly to monitor their portfolio of investments, and to make new decisions. Each week, different members do research and make presentations advocating the purchase or sale of a particular stock. Decisions are then based on a majority vote.

The group is home to aspiring Wall Street mavens, as well as those with other career aspirations. Most members join to learn about asset management. For example, pre-med economics major Alex Greenstein, ES '98, who wanted "easy tips about how to make money, and to get tips for my own investments."

"It's the only way I know of for undergraduates to get some real-life experience with all aspects of financial markets," Paul Sohn, SY '99, said. Sohn currently serves on the group's board of directors.

According to Marshall, the group does not generally touch its profits. This year, though, they are planning to use some of their profits to fund a base of operations in Welch Hall for undergraduates to conduct on-line research. Philip Greene, Assistant Dean of Yale College who oversees undergraduate activities, emphasized that "the group is not embezzling or redirecting the original endowment they received, and they don't put the money to personal use." Greene regularly checks up on the group's financial statements.

While a $130,000 budget might seem unusually high for an undergraduate group, Greene called attention to the fact that other groups also have large accounts. "The Yale Broadcasting Company has five times as much, and the Whiffenpoofs also manage lots of money," he said.

Other colleges have similar investment groups as well. Marshall said that the endowment at Ohio State University gave $11 million to its student investors, the highest budget nationwide for any such group. Dartmouth also has plans to put in some seed money for a national investment newsletter containing articles and tips for university students.

Marshall said that the club is open to all new members, regardless of their investment knowledge. "I myself didn't know too much when I started out," he said. "But I've learned a lot since. This group is very student-motivated and a pretty unique vehicle to get hands-on experience."

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