Fund Team: Financials Update

Bill Jung, Financials Sector Leader 2015-16

Oxford Technology Venture Capital Trust (OXT)

Oxford Technology 2 Venture Capital Trust Plc is a United Kingdom-based venture capital trust. The principal activity of the Company is to invest in start-up and early-stage technology companies in general located within around 60 miles of Oxford. The Company is focused on investing in early-stage and start-up technology companies. The Company’s investment portfolio includes OC Robotics, Select Technology, Telegesis, Plasma Antennas, Orthogem, Inaplex, Arecor, Insense, Oxis Energy, Immunobiology and DHA. The Company is managed by Oxford Technology Management.

Shareholders of record on Thursday, January 21st will be paid a dividend of GBX 10 ($0.15) per share on Friday, February 19th. This represents a dividend yield of 16.13%.

The dividend yield of OXT is very high, and it signals to the market that several investee companies show significant progresses or positive signals to the markets (e.g. Austin-based Silicon Labs has acquired Telegesis (incubated by OXT), a privately-held supplier of wireless mesh networking modules, for approximately $20 million).

OXT shows more volatile but profitable pricing patterns over around 5 years. It also signals that FTSE 100 plays like bottom line of OXT so that we could hedge the risk in the worst scenario.

Therefore, the volume is not too big, but the stock itself is volatile enough to take technical approach, despite the fact that it seems promising even in terms of fundamental analysis. I would suggest that we go long based on MACD rules.

MACD rules are exactly align with the trends of stock, so we could reap some profits as long as we go long position.

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