Blavatnik School of Government

Generating returns

Our purpose is to maintain and grow the real value of endowments, while providing a stable stream of income, to help our investors achieve their long term aims.

Investing perpetuity capital allows us to be both opportunistic and patient, enabling us to see through short term volatile markets.

Our investment philosophy

Our investment philosophy consists of four pillars that shape our decision making. It enables us to refine the investment universe and identify world class investment opportunities whilst maintaining capital in order to generate significant real returns.

Pursue fundamental long term investment themes Partner with exceptional investment talent Use multiple drivers of return Manage risk holistically Generate significant real returns

Pursue fundamental long term investment themes

One of our core competitive advantages is managing perpetuity capital. We pursue long term themes across asset groups, where we believe tensions, changes or inefficiencies in economies and markets provide investment opportunities

Partner with exceptional investment talent

We believe that, in most circumstances, active management with the right investment group leads to superior returns. We build constructive relationships and interact regularly with managers, partnering for the long term and across market cycles.

Use multiple drivers of return

We believe that owning equity in productive businesses is the best way for us to achieve our investment objective. However, we recognise the cyclical nature of markets and we also invest in assets where returns are not dependent on the broader equity market cycle, such as property and credit. Alongside this, we diversify the fund across strategy, geography and sector.

Manage risk holistically

Effective risk management is a mindset, ingrained in the company culture and investment philosophy, not the activity of one department or division. As part of this, we constantly evaluate a range of metrics and exposures to ensure that our fundamental views produce an optimal portfolio positioning.

Investment process

Our team has the freedom to make investments today that may not come to fruition during their lifetime. We pursue long term themes across asset groups, where we believe tensions, changes or inefficiencies in economies and markets provide investment opportunities.

We build constructive relationships, partnering for the long term and across market cycles. The stability of the Fund’s long term capital helps us secure allocations in the most sought after investment groups.

Investment process Sourcing Evaluation Due diligence

Sourcing

Our investment philosophy is designed to refine the potential investment universe. We look for investment groups that have: aligned interests with their investors; deep expertise in their chosen markets; a small number of holdings; exceptional understanding of their investments and constructive relationships with OUem.

Due diligence

Before any investment is made, we complete a detailed due diligence process to ensure an idea matches our expectations. This involves significant analysis of the investment thesis and its ability to contribute to the long term objectives of the Fund, and extensive operational due diligence to ensure robust infrastructure and controls. We spend considerable time understanding the teams and individuals who will steward the assets.

Evaluation

We have an ongoing dialogue with our investment managers to ensure a full understanding of progress against the stated strategy, assets held and potential risks within the Fund. We prefer groups whose investment style is to hold a concentrated number of companies and engage with their management teams regularly, acting as business owners.

Risk management

To be an effective long term investor, risk analysis is an integral part of our investment decision making and portfolio management. We constantly evaluate a range of metrics and exposures to ensure that our fundamental views produce an optimal portfolio positioning. This includes analysis of environmental, social and governance risks.