The Oak Associates Small Cap Growth strategy seeks long-term capital growth by investing primarily in stocks of smaller U.S.-listed companies (less than $3 billion in market capitalization.) The portfolio follows the firm’s philosophy of investing in the firm’s best ideas, remaining fully invested and making decisions with a long-term mindset.
Our approach
Portfolio holdings are focused on a specific niche, which allows the company to execute better than competitors and avoid challenges from larger firms. The portfolio will invest in growth wherever it is occurring and is not limited by traditional sectors or historical metrics.
Oak’s investment team manages this portfolio collaboratively with a top-down and bottom-up investment approach:
Top-down
Our process begins with a top-down look at long-term investment opportunities. The top-down analysis takes into consideration long-term investment themes, such as globalization, demographics, productivity and innovation. Portfolio holdings are focused on a specific niche, which allows the company to execute better than competitors and avoid challenges from larger firms. The portfolio will invest in growth wherever it is occurring and is not limited by traditional sectors or historical metrics.
Bottom-up
As part of the bottom-up process, we employ a fundamental-driven approach to determine which companies are best positioned to capitalize on our investment thesis. Buy-candidates are evaluated on their position in the industry, market opportunity, current valuation and risk-reward. We consider both fundamental and technical characteristics when determining an attractive entry point. Other factors in the company-level analysis include relative valuation, traditional multiples analysis and discounted cash-flow valuation methods. We pay particular attention to the sustainability of a company’s earnings.
The Small-Cap Growth strategy is also available as a no-load mutual fund, River Oak Discovery Fund (RIVSX).
Email the Relationship Management Team or call 330-668-1234