016 months to 5 years
50%
Long/Short Equity
Fundamental, value-based stock selection on both sides of the book, run close to market-neutral.
The investment fund of Alpha Epsilon Zeta · UC Berkeley
Disciplined capital,
rigorous research.
Zenith Capital manages a portion of Alpha Epsilon Zeta’s reserves through four strategy pods. Brothers research and write every pitch, and an Investment Committee of officers and industry alumni votes on each one.
Target allocation
Strategic mandate
| Pod | Horizon | Target |
|---|---|---|
| Long/Short Equity | 6 months to 5 years | 50% |
| Sector ETFs | Cyclical | 25% |
| Fixed Income | Short to intermediate | 15% |
| Derivatives | Tactical | 10% |
Allocations move up to ±10% from target based on pod performance.
- Strategy pods, each with its own leader
- 4
- Of positions approved by committee vote
- 100%
- Alpha Epsilon Zeta founded at Berkeley
- 2003
- AEZ alumni across finance and technology
- 200+
01The Fund
An investment practice built inside a brotherhood.
Over a dozen active brothers of Alpha Epsilon Zeta are pursuing careers in investing. Zenith Capital gives that interest a mandate: real capital, a written process, and alumni who have done the job reviewing the work.
01
Own businesses, not tickers.
Every equity position begins with what a company earns and what it is worth. Price is where the work ends, not where it starts.
02
Risk before return.
Diversification across four strategies, explicit hedges, and hard position limits come first. Returns are what is left after the risks are paid for.
03
Write it down.
No investment reaches the committee without a written pitch. A thesis that cannot be put on paper is not ready to be owned.
02Strategy
Four pods. One diversified portfolio.
Each pod runs one core strategy with its own leader, research and pitches. Together they aim for consistent returns with low exposure to the market as a whole.
02Cyclical
25%
Sector ETFs
Exposure to sectors with durable tailwinds and favorable macroeconomic conditions.
03Short to intermediate
15%
Fixed Income
U.S. Treasuries, certificates of deposit, and investment-grade bonds for stable yield and liquidity.
04Tactical
10%
Derivatives
Protective puts and shorts to hedge the equity book, and covered calls for predictable income.
03Risk Mandate
Limits written down before the first trade.
The VP of Investments is accountable for the fund’s risk. These limits apply to every position, in every pod.
- Position limit
- 5%
- No single investment may exceed 5% of total portfolio value at entry.
- Sector cap
- 30%
- Exposure to any one sector is capped at 30% of the portfolio.
- Market neutrality
- |β| < 0.2
- The Long/Short pod keeps its absolute beta below 0.2 to limit the effect of market cycles.
- Liquidity floor
- 10%
- At least 10% of assets stay in cash or short-duration Treasuries to cover margin and withdrawals.
- Allocation drift
- ±10%
- Pod allocations move up to ten points from target, rewarding the strategies that perform.
04Process
From thesis to position.
No position enters the portfolio without a written pitch and a committee vote.
01
Training and endorsement
Brothers complete pod training and are endorsed by their Pod Leader before they work on live ideas.
02
Research
The pod sources an idea within its strategy, builds the model, and identifies what would prove the thesis wrong.
03
Written pitch
Every recommendation is submitted as a written pitch of at least half a page, reviewed by the Pod Leader.
04
Committee vote
The Investment Committee, the VP of Investments and the Alumni Advisory Council, votes on every pitch.
05
Monitor and report
Approved positions are sized within the mandate, monitored by the pod, and reported in the semester investor letter.
05Membership
Run by brothers. Reviewed by alumni.
Zenith is open to active brothers of Alpha Epsilon Zeta. Members join a pod after training and an endorsement from its Pod Leader, then put their work in front of an Investment Committee that includes alumni from the industry.
Each semester the VP of Investments writes an investor letter on the fund’s performance and positions, sent to every active brother and the Alumni Advisory Council.
06Alumni Network
Where AEZ alumni work.
Zenith is part of Alpha Epsilon Zeta, founded at Berkeley in 2003. Its alumni advise the fund from banks, investment firms and technology companies.
- TPG
- Point72
- Moelis & Company
- Jefferies
- Houlihan Lokey
- Guggenheim Securities
- Squarepoint
- Surveyor Capital
- Needham & Company
- Wells Fargo
- Apple
- Stripe
- Coinbase
- Meta
- xAI
Alumni & Advisors
Help shape the next generation of investors.
Alumni with investing experience can join the Alumni Advisory Council, review pitches, and vote with the Investment Committee.