All Cap Value

OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., offers a diverse range of tailored investment products and services, including separately managed accounts as well as program and investment management services to 529 college savings and prepaid plans. As part of an organization with 50 years of financial industry experience, OFI Private Investments helps high net worth individuals, institutions and nonprofit organizations work toward their financial goals.

The All Cap Value investment style is based on a value-oriented strategy that should be considered an important component of a diversified portfolio. Investors are often focused on stocks that are doing well today, frequently leaving many good companies unnoticed. The All Cap Value portfolio seeks to find those unnoticed companies - which takes great skill.

Investment Strategy

The All Cap Value investment style seeks to invest in stocks of companies undervalued by the market with strong business prospects whose potential has not yet been realized and are improving. These can be stocks from companies that are currently unheralded or whose previous financial performance has obscured their future earnings growth potential. The key is identification and selection of undervalued stocks with the potential for appreciation. This involves fundamental company analysis and consideration of future prospects of the business.

The portfolio manager assesses a company’s prospects based on:

• Favorable supply/demand conditions of key products
• Development of new products or businesses
• Quality of management
• Competitive position in the marketplace
• Allocation of capital

We focus on discovering undervalued stocks that have the potential for future earnings. Without earnings potential, these stocks can be considered expensive, relative to what they are worth. The All Cap Value investment style looks for companies poised to break out in the near future. For example, when a company announces earnings that are significantly greater than analysts’ expectations, it often signals a fundamental change. We try to find these positive earnings surprises to identify companies where growth may be accelerating.

We seek to derive investment results from a bottom-up stock selection, focusing on what really matters—the strength of the individual stocks. We visit companies to thoroughly research what is really going on with a company and its stock. This exhaustive research helps us to select stocks we believe will outperform—not just the markets,but also other value stocks. We concentrate on stocks, not sectors, and we believe this approach has the potential for consistent year-after-year results. The chosen securities are from small-, medium- and large-capitalization U.S. companies. The portfolio is designed for investors seeking capital appreciation over the long term.