The Oak Associates All Cap Core Growth Strategy seeks to maximize returns over a full market cycle by investing in the firm’s best ideas, remaining fully invested and making decisions with a long-term mindset.
The All Cap Core Growth portfolio typically holds 25 to 40 stocks and invests in a limited number of sectors. The portfolio invests in the manager’s best ideas of any size. Rather than setting a target for market cap exposure, the allocation of small, mid and large cap companies is a result of the number of opportunities and the risk/reward profile of individual sectors and companies.
Our top-down analysis comprises about 60% of the process and includes consideration of inflation, wage pressures, leading economic indicators and global short-term rates. This macroeconomic analysis leads us to the most attractive sectors. We evaluate sectors by considering relative valuation, stage in the economic cycle and capacity within the sector. Other inputs to the top-down analysis include market sentiment indicators such as investor surveys, valuation spreads, stock correlations and fund flows.
The bottom-up process then applies empirically based qualitative and quantitative criteria to identify the buy candidate. A typical Oak holding has attractive valuation, high free cash flow yield, high earnings quality and a sustainable competitive advantage.
The All Cap Core Growth strategy is also available as a no-load mutual fund, Pin Oak Equity Fund (POGSX).
Investments are made with a long-term orientation, generally involving purchases of securities held for 3 to 5 years. This results in relatively low portfolio turnover. Our investment style tends to focus on identifying opportunities the market isn’t seeing or is underestimating, thus seeking out-of-favor situations at attractive prices.
Oak Associates, ltd. named All Cap Equity Emerging Manager of the Year (586 KB PDF)
Email the Relationship Management Team or call 330-668-1234