Undergraduate Firm Beats Wall Street
It is run 100% by undergraduate students with alumni as advisors.
USA Today reports.
How a student-run investment firm beats Wall Street
A firm that can consistently beat the S&P 500 is a unicorn amongst Wall Street investors. But, Global Platinum Securities has done just that since 2008.The firm’s advantage? It’s run entirely by undergraduate college students.
MarketWatch found that 0.6% of investors have genuine talent for beating the market. However, Global Platinum Securities (GPS) has been beating the S&P 500 every year since 2008 and, since its first investment in 2005, has outperformed the S&P by 2.9% in annualized returns over its 10 years.
Although they are not paid, students have the option to invest their own money in the fund, which has grown to about a quarter-million dollars, and is run 100% by undergraduate students with alumni as advisors. Most do it for the real-world experience.
“(The returns are) quite remarkable,” says company COO Lucas Wimmer, a senior studying International Economics at Georgetown University. “The other thing is, of course, everyone in GPS … is a good investor in their own right, but we’re also all students, so I think that makes it even more remarkable is that we’re able to do it and it’s not our full-time job.”