Oak Value portfolio managers have agreed to take questions from GuruFocus users. Oak Value manages about $200 million and the fund managers’ principle is “ to buy above average quality businesses at a discount from intrinsic value”. Oak Value Fund is weighted in Berkshire Hathaway, Praxair, Avon Products, Oracle, Diageo, and recently bought into Becton, Dickinson & Co.
Oak Value was founded in 1986. The firm tries to focus on buying good businesses with good management at attractive prices. The Fund has now outperformed the market in four of the last five, and eight of the last twelve quarters. “While the overall returns have been negative during this period, we believe our focus on quality businesses has served our clients well during what has certainly been ‘the coldest winter on record’ of bear markets.”
These are the top holdings of Oak Value Fund:
In the Value Investor Conference held in LA, Oak Value CEO Larry Coats discussed in detail about some of these holdings. To him, the quality of business is the most important factor in the firm’s investment decision making.
The fund managers also discussed the top holdings in their latest shareholder letter. Fund initiated a new position in Becton, Dickinson & Co. The managers argued:
In our view, Becton, Dickinson is a consumables business in the healthcare value chain. The predictability of the business is enhanced by the company’s market-leading positions with a limited number of competitors in each of its three business units. Becton, Dickinson generated more than $7 billion in revenue in 2008 and has more than doubled its cash flow from operations over the last six years. In our view, Becton, Dickinson is conservatively positioned and well prepared to weather a global economic slowdown with its strong balance sheet, healthy cash flow and solid credit ratings. Company management has continued to reiterate its commitment to growing the business organically through its Diagnostics and Biosciences segments, while maintaining steady growth at the Medical segment.
If you like to know more about Oak Value portfolio managers and their fund, you can go to their website.
Oak Value Fund Managers will now take your questions. Please list your questions in the comment area below. We will collect these questions and send to the managers. After we receive the answers, we will post them here.
Oak Value was founded in 1986. The firm tries to focus on buying good businesses with good management at attractive prices. The Fund has now outperformed the market in four of the last five, and eight of the last twelve quarters. “While the overall returns have been negative during this period, we believe our focus on quality businesses has served our clients well during what has certainly been ‘the coldest winter on record’ of bear markets.”
These are the top holdings of Oak Value Fund:
| Berkshire Hathaway, Inc. (A) | 9.7% |
| Praxair, Inc. | 7.2% |
| Avon Products,Inc. | 6.1% |
| Oracle Corp. | 5.7% |
| Diageo plc ADR | 5.7% |
| Cadbury plc ADR | 5.4% |
| Coach, Inc. | 5.2% |
| Aon Corp. | 4.4% |
| Moody's Corp. | 4.4% |
| Microsoft Corp. | 4.2% |
In the Value Investor Conference held in LA, Oak Value CEO Larry Coats discussed in detail about some of these holdings. To him, the quality of business is the most important factor in the firm’s investment decision making.
The fund managers also discussed the top holdings in their latest shareholder letter. Fund initiated a new position in Becton, Dickinson & Co. The managers argued:
In our view, Becton, Dickinson is a consumables business in the healthcare value chain. The predictability of the business is enhanced by the company’s market-leading positions with a limited number of competitors in each of its three business units. Becton, Dickinson generated more than $7 billion in revenue in 2008 and has more than doubled its cash flow from operations over the last six years. In our view, Becton, Dickinson is conservatively positioned and well prepared to weather a global economic slowdown with its strong balance sheet, healthy cash flow and solid credit ratings. Company management has continued to reiterate its commitment to growing the business organically through its Diagnostics and Biosciences segments, while maintaining steady growth at the Medical segment.
If you like to know more about Oak Value portfolio managers and their fund, you can go to their website.
Oak Value Fund Managers will now take your questions. Please list your questions in the comment area below. We will collect these questions and send to the managers. After we receive the answers, we will post them here.
