Large Cap Value
- Asset Allocation Ranges - Cash: 0% - 5%
- Investment Approach: Fundamental/Bottom-up
- Style: Large Cap Value
- Minimum Account Size: $100,000
- Asset Allocation Ranges - Equity: 95% - 100%
- Average Annual Turnover: 50% - 80%
- Approximate Number of Holdings: 40 - 50
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.
Investment Strategy
The Value team has implemented a unique style of value investing, focusing on long-term earnings power, differentiating themselves from most other value managers in the industry. The team also has a broad group of analysts who apply years of experience in their assigned research areas to the overall stock selection process. Fostering an environment of teamwork, each member's prior experience and skills are leveraged so they are able to apply a diversity of knowledge to the overall investment process and deliver value to client portfolios.
The Value team realizes that there is more to value investing than just identifying 'cheap stocks' in the marketplace. This is why their philosophy is predicated on the belief that the key to identifying successful value investments is evaluating a company’s long-term earnings power. By evaluating long-term earnings power, and ultimately identifying what will differentiate the long-term earnings potential of similar companies, the team believes they can better evaluate a stock's potential to increase in price over time and generate superior returns into the future.
Portfolios are constructed utilizing bottom-up, fundamental analysis, and a stock selection process focusing on attractively priced companies the investment team deems have the ability to generate earnings over the long term. When selecting stocks, the team tries to avoid macroeconomic forecasting, instead focusing their research on identifying the best potential companies in each sector. They believe changes in the macroeconomic environment generally affect individual companies within a sector in the same manner and magnitude, but not in the marketplace overall. Therefore, sector analysts conduct fundamental, proprietary research in order to gain a full understanding of each company's business model, and ultimately, underlying earnings power over the long term. Value investing involves the risk that undervalued stocks may not appreciate as anticipated.
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Top 10 Holdings
| Security Name | % of Assets |
|---|---|
| JPMorgan Chase & Co. | 5.01 % |
| Chevron Corp. | 5.00 % |
| Navistar International Corp. | 3.59 % |
| Morgan Stanley | 3.55 % |
| Tyco International Ltd. | 3.55 % |
| Merck & Co Inc | 3.36 % |
| AT&T Inc. | 3.28 % |
| Apache Corp. | 3.13 % |
| Motorola Inc. | 3.09 % |
| Time Warner Cable Inc. | 2.96 % |
1. Top 10 Holdings are current as of 12/31/09, 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.