Gulf Value
- Investment Approach: Bottom-up, Fundamental
- Approximate Number of Holdings: 20 - 35
- Asset Allocation Ranges Equity: 70 - 100%
- Style: Value
- Anticipated Turnover: 10% - 30%
- Asset Allocation Ranges Cash: 0 - 30%
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 Gulf Value investment style was established by Gulf Investment Management, Inc., an investment advisor founded in 1980, to provide high quality value equity investment management services for individuals, retirement plans, trusts, public funds, corporations, unions, endowments and foundations. The OppenheimerFunds group of companies acquired the majority of Gulf Investment Management's assets in 2002. Together, we aim to provide clients with a level of service and investment performance that exceeds their expectations and helps them reach their goals.
Gulf's approach to stock investing is based on value, derived from an analysis and appraisal of the underlying assets and the known future prospects of businesses. We seek to buy stocks that are priced at a significant discount to their business or intrinsic value. Investments are made with what we refer to as 'a margin of safety,' which lessens the chance of a permanent loss of capital.
Our investment horizon is long term (two to three years) and our returns have been tax efficient (most gains qualify for lower long-term rates). Our selection process is bottom-up in nature.
The universe of investment candidates is derived from the companies covered by the team's analysts, as well as new ideas generated by periodicals, conference attendance and industry contacts.
From this, we develop a stock monitor list of about 250 companies. Critical factors used in the analytical process include book value, asset value, cash flow, reinvestment rate, return on capital and debt coverage ratios. The culmination of our research is an appraisal of the company's intrinsic value, and a determination of the earning power or future prospects of the business.
Only stocks selling at a sufficient discount to intrinsic value are considered for purchase. A security is sold when it exceeds its intrinsic value, or if we believe that deterioration in the underlying business has significantly lowered its intrinsic value.
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Top 10 Holdings
| Security Name | % of Assets |
|---|---|
| JPMorgan Chase & Co. | 4.70 % |
| Everest Re Group Ltd. | 4.20 % |
| Chevron Corp. | 3.80 % |
| Merck & Co Inc | 3.60 % |
| Pfizer Inc. | 3.30 % |
| MetLife Inc. | 2.70 % |
| AT&T Inc. | 2.60 % |
| Morgan Stanley | 2.40 % |
| Exxon Mobil Corp. | 2.40 % |
| Kroger Co. | 2.30 % |
1. Top 10 Holdings are current as of 3/31/10, are based on a representative account managed within the strategy included in the composite, are subject to change, do not constitute a recommendation by OFI Private Investments of any of the positions and may vary by account . The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients. It should not be assumed that an investment in the securities identified was or will be profitable.