Oak Value Fund 2007 Q2 Investment Adviser's Review

Oak Value Fund release their 2007 Q2 Investment Adviser's Review. I highlight some points below :

  • Investment Philosophy
    • Disciplined focus on buying higher quality, sustainably advantaged businesses where the risks we assume are more than appropriately reflected in the prices that we have paid.
    • Our task is not that of completely eliminating risk or uncertainty. Alternatively, we believe that our charge is to identify, understand and price risk and to take advantage of that mispricing when we believe the rewards are attractive.
  • Portfolio Review
    • Portfolio Performance Contributors :
      • Apollo Group, Fidelity National Information Services, 3M, Praxair and Constellation Brands.
    • Portfolio Performance Detractors :
      • eBay, Berkshire Hathaway, Omnicare, Medtronic and Viacom
    • New Positions
      • Medtronic, Omnicare, United Parcel Service
    • Eliminated Positions
      • Masco, Time Warner, Tyco International
    • Update on Largest Holdings…
      • Apollo Group, Berkshire Hathaway, Fidelity National Information Services, E. W. Scripps, Praxair
  • About Worry
    • It is human nature to worry about recent events or factors which are apparent with the benefit of hindsight.
    • An obvious example of this “worry” is the presumption that the shares of a company contain more “risk” after a decline that has been caused by some short-term disappointment or surprise.
    • The ultimate risk that we attempt to guard against is that of a permanent loss of capital.
    • We believe that it is more important to “worry” about that which may happen as opposed to that which has happened and to make sure that we have reflected such in our decisions.
    • It is most important that an investor “worry” about the things that are relevant to long-term business models and the valuations thereof.
Disclosure : I don't have any of these equities listed above.

Direct Article Link (PDF).

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