The Oxford Alpha Fund adopts a fundamentals-driven, bottoms-up approach that considers both individual company analysis and industry-level dynamics. Primarily focused on quality compounders that exhibit resilience, and companies with a long runway for growth at a fair valuation, we develop in-depth research, supported by proprietary financial models built by our analysts. We adopt an Oxonian approach toward investing, prioritising academic rigour, first-principle thinking, and a deep-dive approach toward research, seeking out qualitative and quantitative sources of information that might be overlooked by the Street. This culminates in an approach to the industry that spans 2-3 months.
Led by a more experienced PM, teams collectively choose an industry that they are interested in, based on their unique make-up and diverse research leanings. Teams are typically composed of a mix of graduate and undergraduate students with varied backgrounds in science, humanities and finance. Teams perform industry-level analysis on two attractive themes within an industry - splitting up into two sub-industry teams, and jointly produce an industry report that frames the assumptions, and common drivers in each industry. The teams then determine the most attractive set of names to long and short, and work on the names individually or in pairs, developing a framework to relatively compare the names. The fund then holds a pitch day every term, where the our best ideas are pitched to a panel of industry veterans. The panel then judges our pitches – providing us mentorship and refine our ideas. Past members of our panel include investors from J.P. Morgan Asset Management, Fidelity International, Nevsky Capital, and Morgan Stanley Investment Management. Our reports are then published and circulated to our research partners.
The fund meets in general several times a term, bookmarked by the termly stock and industry pitches. Each industry team meets at their own time, typically once or twice a week to develop their models and refine their ideas. We host high-profile industry practitioners, investment roundtables, and company workshops. In addition, we conduct our annual bootcamp in Michaelmas, supported by our sponsors and the Oxford Alpha Fund alumni network.