Value Aligned Research Advisors

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Quality:50 (Adequate)⚠️

Importance:40 (Reference)

Last edited:2026-02-02 (4 days ago)

Words:1.8k

Structure:

📊 3📈 0🔗 6📚 13•6%Score: 13/15

LLM Summary:Value Aligned Research Advisors is a Princeton-based hedge fund managing $8.2B in AI infrastructure investments with notable EA community connections. Co-founder Ben Hoskin serves on the ARC board and has Giving What We Can background; investors include Dustin Moskovitz's foundation.

Issues (1):

QualityRated 50 but structure suggests 87 (underrated by 37 points)

Quick Assessment

Attribute	Assessment
Type	Investment advisory firm and hedge fund
Founded	2022 (some sources cite 2011)¹²
Location	Princeton, New Jersey
AUM	≈$8.2 billion portfolio value (Q3 2025)³
Key Focus	AI infrastructure, semiconductors, energy
Notable Investors	Charitable foundation of Dustin Moskovitz⁴
Regulatory Status	SEC-registered (CRD 319135, CIK 0001963565)⁵

Key Links

Source	Link
SEC Investment Adviser Public Disclosure	adviserinfo.sec.gov
13F Holdings Tracker (WhaleWisdom)	whalewisdom.com
Portfolio Analysis (Fintel)	fintel.io

Overview

Value Aligned Research Advisors, LLC (VARA) is a registered investment advisory firm specializing in discretionary asset management with a concentrated focus on artificial intelligence infrastructure and related technologies. Founded by former quantitative analysts Ben Hoskin and David Field, the firm manages approximately $8.2 billion in portfolio value as of Q3 2025, representing one of the more prominent recent entrants into AI-focused institutional investing.³⁴⁶

The firm’s investment strategy emphasizes long-term value investing through fundamental analysis, with heavy concentration in semiconductors, AI compute infrastructure, and energy companies supporting data center operations. According to its SEC filings, VARA serves high-net-worth individuals, charitable organizations, and institutional clients through customized discretionary portfolio management.¹⁷

Despite its name potentially evoking concepts from AI alignment research, VARA operates as a conventional investment advisory firm focused on commercial AI investments rather than AI safety or technical alignment work. The firm’s portfolio reflects a thesis centered on beneficiaries of AI development—including chip manufacturers like NVIDIA and Taiwan Semiconductor, cloud infrastructure providers like CoreWeave, and power suppliers like Vistra Corp—rather than organizations working on AI safety research.³⁶

History and Growth

Value Aligned Research Advisors was established in 2022, though some sources cite a 2011 founding date.¹² The firm received SEC approval on April 14, 2022, and is organized as a Delaware limited liability company.⁵⁸

The firm launched an AI-focused hedge fund strategy in March 2024 (or early 2025, per some filings), rapidly accumulating approximately $1 billion in assets.⁴ This growth trajectory continued through 2025, with the firm’s portfolio value expanding from $1.37 billion in early 2025 to $4.73 billion by Q2 2025 (representing a 49.7% inflow), and reaching approximately $8.2 billion by Q3 2025.³⁶

This rapid asset accumulation made VARA notable among a cohort of new AI-focused hedge funds launched during the 2024-2025 AI investment boom. The firm attracted capital from prominent investors including the charitable foundation of Facebook co-founder Dustin Moskovitz, according to regulatory documents.⁴

Investment Strategy and Portfolio

VARA employs a concentrated, high-conviction investment approach with its top 10 holdings representing 52.79% of portfolio value as of Q2 2025.⁶ The firm’s strategy combines long equity positions with substantial options activity, particularly call options on major semiconductor and technology companies.

Portfolio Composition

As of Q3 2025, the firm held 81 positions with the following top holdings:³⁶

Holding	Portfolio Weight	Notes
NVIDIA (NVDA) calls	7.12%	Core AI chip position
Taiwan Semiconductor (TSM) calls	6.38%	Foundry exposure
Vistra Corp (VST)	5.6%	Data center power supplier
Intel (INTC) calls	5.34%	Semiconductor diversification
Alphabet (GOOGL) calls	5.15%	AI platform exposure
CoreWeave (CRWV)	Notable position	Cloud compute for AI

The firm maintains significant exposure through options contracts, including 21,348 NVIDIA call contracts worth approximately $337.3 million in notional value.²

Trading Activity and Strategy

VARA demonstrates relatively high portfolio turnover at 45.35%, with an average holding period of just 1.1 quarters for its top 10 positions.⁶ During Q2 2025, the firm executed 25 new purchases, added to 33 existing positions, sold out of 14 holdings, and reduced 14 others.⁶

The investment thesis appears centered on identifying commercial beneficiaries of AI development, with particular emphasis on:

Semiconductor manufacturers: NVIDIA, Taiwan Semiconductor, Intel, AMD
AI infrastructure: CoreWeave, Snowflake, cloud computing enablers
Energy/power: Vistra Corp, Constellation Energy, GE Vernova (companies supplying power to AI data centers)
Supporting equipment: Vertiv Holdings, Comfort Systems USA, EMCOR Group (data center infrastructure)²³⁶

Performance and Risk Profile

VARA’s performance data reveals significant volatility consistent with its concentrated AI/technology focus. In Q1 2025, the fund reported a -23.66% return with $1.23 billion in assets under management and 33 holdings.⁹ This underperformance occurred during a period when broader market volatility affected high-growth technology stocks.

The firm’s risk profile is characterized by several factors:

High Concentration: With over 52% of assets in the top 10 holdings and heavy weighting toward AI-related equities, the portfolio exhibits significant single-sector risk.⁶

Short Holding Periods: The average 1.1-quarter hold time for top positions suggests either active trading or tactical positioning rather than true long-term value investing, despite the firm’s stated philosophy.⁶

Options Exposure: Substantial use of call options amplifies both upside potential and downside risk, particularly in volatile semiconductor and technology stocks.²

Sector Correlation: The portfolio’s concentration in AI infrastructure, semiconductors, and related energy suppliers means holdings likely move in tandem during sector-wide drawdowns.

Organizational Structure

VARA operates with a lean team of 6 employees as of 2025, with the majority in investment roles.¹ The firm is headquartered at 51 Park Place, Princeton, New Jersey, with its legal address registered in Delaware.⁸

Key Personnel

Ben Hoskin: Co-founder, Managing Partner, and Investment Adviser. Hoskin has significant ties to the effective altruism community: he served as Manager at Giving What We Can (2012) and President of GWWC Oxford, and currently sits on the board of the Alignment Research Center (ARC) since July 2024.²⁴⁷
David Field: Co-founder, Managing Partner, and Investment Adviser. Former quantitative analyst.²⁴⁷

The founders’ backgrounds combine quantitative finance expertise with, in Hoskin’s case, deep connections to the effective altruism and AI safety communities.

Regulatory Information

Value Aligned Research Advisors is registered with the SEC as an investment adviser under CRD number 319135 and CIK 0001963565.⁵ The firm files quarterly 13F reports disclosing equity holdings over $100 million, providing transparency into its major positions.

As of its most recent Form ADV filing (October 30, 2025), VARA reported $542,161,194 in discretionary assets under management serving 2 clients, though this figure excludes cash holdings and may not reflect the full value shown in 13F securities filings.⁵¹⁰

The firm’s Legal Entity Identifier (LEI) is 254900N49PFRX2S91X38, issued and updated on January 8, 2025, with next renewal due in 2026.⁸

Relationship to AI Safety and Effective Altruism

VARA has notable connections to the effective altruism and AI safety communities through its leadership and investor base:

EA Community Ties: Co-founder Ben Hoskin has deep roots in effective altruism, having served as Manager at Giving What We Can and President of GWWC Oxford. He currently sits on the board of the Alignment Research Center (ARC), one of the prominent AI safety research organizations.⁴

EA-Adjacent Investors: The charitable foundation of Facebook co-founder Dustin Moskovitz (a major EA funder through Open Philanthropy) is among VARA’s investors.⁴

Client Focus: According to its SEC filings, VARA explicitly serves “clients who prioritize charitable giving, such as charitable foundations and individuals with plans to donate a large portion of their net worth over their lifetime”—a description that aligns with EA philanthropic profiles.⁷

While VARA’s portfolio consists of commercial AI investments rather than direct AI safety work, the firm’s leadership connections and client base suggest it operates as an EA-adjacent investment vehicle, potentially helping EA-aligned donors grow assets for future philanthropic deployment.

Criticisms and Concerns

While no explicit public criticisms of VARA appear in available sources, several aspects of the firm’s strategy and performance warrant scrutiny:

Performance Volatility

The firm’s Q1 2025 return of -23.66% during a period of technology sector weakness raises questions about downside risk management.⁹ For an investment adviser marketing long-term value investing, such significant quarterly drawdowns may concern risk-averse clients, particularly given the firm’s concentration in volatile AI-related securities.

Strategy-Reality Misalignment

VARA describes its approach as “long-term value investing,” yet maintains an average holding period of 1.1 quarters for top positions and demonstrates 45.35% portfolio turnover.⁶ This disconnect between stated philosophy and actual trading behavior suggests either tactical opportunism or a strategy that may not align with traditional value investing principles.

Concentration Risk

With 52.79% of assets in the top 10 holdings and heavy sector concentration in AI infrastructure, the portfolio lacks diversification relative to typical institutional investment management.⁶ During sector-wide corrections in semiconductors or technology, this concentration could amplify losses significantly beyond broader market declines.

Rapid Asset Growth

The firm’s expansion from approximately $1.4 billion to over $8 billion in portfolio value within roughly three quarters raises questions about whether investment strategy and risk management capabilities have scaled proportionally with asset growth.³⁶ Rapid expansion can strain operational capacity and potentially force deployment of capital into less-optimal positions.

Limited Track Record

Established in 2022 and launching its AI-focused strategy in 2024/early 2025, VARA has a limited performance history, particularly through full market cycles including significant downturns.¹⁴ The firm’s strategy has not yet been tested through extended bear markets or prolonged AI investment thesis challenges.

Key Uncertainties

Several important questions remain about Value Aligned Research Advisors:

Performance Sustainability: Can the firm generate positive risk-adjusted returns over longer time horizons, or does its Q1 2025 underperformance suggest structural challenges in its concentrated approach?

Strategy Consistency: Does VARA represent true long-term value investing, or is it more accurately characterized as a momentum-driven AI thematic fund despite its stated philosophy?

Competitive Position: As more capital flows into AI-focused investment strategies, can VARA maintain differentiated insights and returns, or will competition compress opportunities?

Scaling Challenges: Has the rapid growth from $1.4B to $8B in assets been accompanied by proportional expansion in research capacity, risk management infrastructure, and operational capabilities?

Client Concentration: With only 2 clients reported in Form ADV filings, the firm may face significant business risk if either client redeems assets.¹⁰

Recession Resilience: How will the portfolio perform during a broader economic downturn or AI investment correction, given its concentration in high-growth, high-valuation technology companies?