Small-Cap Growth Sell Discipline

Oak Associates, ltd.

A Focus on Growth

This page was last updated: May 6, 2010

Oak Associates, ltd.  2009

3875 Embassy Parkway - Suite 250, Akron, Ohio 44333

Main Tel: 330-668-1234 Fax: 330-668-2901

Oak Associates, ltd. is an independent investment advisor registered with the U.S. Securities & Exchange Commission.

Companies within the Small-Cap Growth Strategy are sold from several reasons:

1. Valuation.

• Excessive valuation and/or competitive pressures.
  

• Unsustainable rate of appreciation.
  

• Change in the risk/reward assessment.
  

• The company's outgrows the small-cap classification.
  

2. We make a mistake.

• The investment thesis identified was wrong.
  

• A better relative opportunity is found.
  

3. Merger and acquisition.

• The company owned is acquired by a large-cap company.
  

• If acquisition practices are over-dilutive to existing shareholders.
  

4. To prevent the "Small-Cap Curse".

• To avoid risk of a significant correction following strong performance and increased probability of a negative earnings surprise.
  

• The rapid breakdown of technically significant levels.
  

Investment Strategies

Large-Cap Growth

Small-Cap Growth