Philosophy
Since our founding, Oak Associates has invested with the belief that contrarian thinking, concentrated portfolios and low turnover lead to superior returns.  In an increasingly short-term oriented investment environment, we believe there are greater opportunities for long-term investors like Oak.

Process
Oak Associates employs a top-down investment approach to identify economic sectors with attractive risk/reward potential.  We then apply bottom-up analysis to our stock selection process, using empirically based criteria to achieve a best-ideas portfolio.

The process is approximately 60% top-down and 40% bottom-up.  Top-down macroeconomic analysis includes consideration of inflation, wage pressures, leading economic indicators and global short term rates.  Additionally, the team evaluates market sentiment indicators such as investor surveys, valuation spreads, stock correlations and fund flows.  This top-down analysis is what leads the team to the most attractive sectors.  The team then evaluates the specific sectors, considering relative valuation, stage in the economic cycle and capacity within the sector.  From there, the bottom-up process begins, applying empirically based qualitative and quantitative criteria in order to narrow the investable universe to the buy candidate.  A typical Oak holding is one with attractive valuation, high free cash flow yield, high earnings quality and sustainable competitive advantage.



Firm Philosophy & Process
This page was last updated: April 22, 2016
Oak Associates, ltd.
3875 Embassy Parkway - Suite 250, Akron, Ohio 44333
Main Tel: 330-668-1234 Fax: 330-668-2901
Institutional Strategies