Oak Associates, ltd.’s Small-Cap Growth Strategy seeks US-listed equities under $3 billion in market capitalization that are likely to experience strong price appreciation. Its companies are expected to display earnings growth above and beyond the market averages due to a competitive advantage or dominant market position. The portfolio holdings are also expected to be focused on a specific niche. This niche focus allows the company to execute better than competitors and avoid challenges from larger firms. The Portfolio Manager will seek growth wherever it is occurring and is not limited by traditional sectors or historical metrics.
The process begins with a top-down look at long-term investment opportunities. Once themes are identified, a fundamental-driven approach is employed to determine those companies that are best positioned to capitalize on the trends identified. An investment thesis is articulated for each holding and the progress toward that thesis is measured. The Portfolio Manager will analyze the attractiveness of each company based on its position in its industry, the market opportunity, current valuation and risk/reward. An attractive entry point, based on both fundamental and technical characteristics, is then determined. Relative valuation, traditional multiples analysis, and discounted cash-flow valuation methods are considered. Particular attention is paid to the sustainability of earnings.
The strategy holds between 35 and 50 securities and is focused in its best ideas. Sector diversification is utilized, but no specific minimums or maximum exposure is required. The strategy is expected to outperform the market by owning high-conviction ideas, and employing a long-term focus with a thematic overlay. However, no assurances can be made such an investment strategy will result in any such benefits to its clients.
Robert Stimpson, CFA, CMT, is the Portfolio Manager for Oak Associates' Small-Cap Growth Strategy.
Small-Cap Growth - Philosophy
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
Investment Strategies
Large-Cap Growth
Small-Cap Growth
