Our approach

Our strategy delivers returns that are low correlated to the market and major indices with positive convexity profile that has tended to outperform during market downturns and perform well in up markets. We deploy a number of risk management strategies to manage drawdown in times of extreme macro events, however there is risk of drawdown and loss of capital in such events. The strategy can struggle for example in market regimes that become unstable, with very sharp rotations, changing correlations and episodic liquidity dislocations. In these environments, models such as ours can temporarily become somewhat “de-synchronized” from the market as they continuously adapt to new structures and absorb sequences of partially unpredictable shocks, hits from rapidly changing macro narratives. In practice, this can create periods where the realised P&L lags the underlying informational quality of the models themselves, particularly when the environment alternates quickly between trend persistence and violent reversals. The path dependency and asymmetric market reactions around these episodes can generate temporary negative drift.

What sets Oxford Algorithms apart from the crowd is its unique combination of deep AI using rigorous, research-led, methodologies and investment expertise with a zealous focus on producing consistent risk adjusted returns. The combined expertise of the team has lent itself to development of a resilient system and an AI algorithm that is not a black box so that every decision can be explained. Our explainable AI is used both to strengthen our own research and understanding as well as to provide detailed explanations to our investors.

Data is the centre-piece of Oxford Algorithm’s research and development process. Each piece of market data is carefully analysed and tested for usefulness within the investment strategies. Based on proprietary machine learning methods, the algorithms have been developed and refined over a number of years and continually learn from new market data.

Real-time automation is key to ensuring data from multiple sources is collected and fed into the algorithms. This results in an investment decision being made to either hold a position or reallocate funds to the investment instruments that are forecast to produce the best risk-adjusted returns.

All Oxford Algorithms products undergo a rigorous and thorough release process focusing on the quality of predictions made whilst managing the overall exposure and risk. Crucially, the investment decisions taken by the algorithms have produced verified and audited results.

While Oxford Algorithms is focused on delivering returns, it is also focused on building long-term sustainable success as a technology company. A significant portion of the AUM is contributed by the founders themselves who view the long-term success of Oxford Algorithms as the number one priority.

Our company and employees abide by a clear set of principles set out in the Oxford Algorithms Investment Charter.

Transparency: we believe greater transparency will encourage trust and progress. We will deliver both good and bad news with detailed explanations under our transparency charter.
No conflict of interest: Employees or executives of the business are allowed to use the results of Oxford Algorithms only by formally investing in the fund. The company policy does not allow personal trading.
Performance first: we will not increase AUM unless we can demonstrate to our board that we can deliver the same quality of performance to our investors in the fund.
Corporate Social Responsibility: as a firm, we are committed to the highest standard actively encouraging a strong culture of making a positive impact internally and externally.