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.