We believe companies, like people, have a lifecycle. In their infancy, companies are typically entrepreneurial ventures, powered by the visionary spirit and energy of a startup.
By adolescence, the most successful companies enjoy exponential growth and develop mature processes and management structures. Provided they do this effectively, companies can sustain a long and prosperous adulthood, turning in years of steady growth for investors. By the time the decline phase manifests itself, companies may find themselves hampered by internal bureaucracy, bloated org charts, regulation, saturated markets and declining profits.
In this series of videos, Frank Jennings, Portfolio Manager of Oppenheimer International Global Opportunities Fund, sat down with Art Steinmetz, Chairman, CEO and President of OppenheimerFunds to discuss the growth curve and his approach to identifying and investing in companies that are in their emerging growth stage.
Frank also shares why he believes investors should count on progress over time, and not focus on any short-term dips in the markets. In Frank’s view, if the American system can remain true to its historical DNA, the country should be wealthier a decade from now than it is today.
He even sheds light on what he believes investors need to know about his strategy. In Frank’s opinion, investors should view Oppenheimer Global Opportunities Fund as an investment that can provide significant upside potential to their portfolio, though it will require the patience to take a long view and a willingness to assume risk.
How PM Jennings selects countries and stocks to invest in
Frank notes that roughly half of the portfolio is invested in U.S. stocks and the rest invested throughout the global markets. Although he’s a U.S.-based investor, he says he’s traditionally invested about 50% of the Fund overseas, with funds invested in a variety of countries that includes Japan and Europe – noting Italy, Germany and Scandinavia among the more notable regions in the portfolio.
in terms of industries, he says that Oppenheimer Global Opportunities Fund is a technology-oriented portfolio, with big positions in medical companies that are developing cutting edge techniques for diagnosing and treating a variety of diseases, including cancer.
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Special Risks: Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile.
Eurozone investments may be subject to volatility and liquidity issues. Investments in securities of growth companies may be volatile. Mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a mid-sized company, if any gain is realized at all. Fixed income investing entails credit and interest rate risks. When interest rates rise, bond prices generally fall, and the Fund’s share prices can fall. Below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk. Diversification does not guarantee profit or protect against loss.
This material is provided for general and educational purposes only, is not intended to provide legal or tax advice, and is not for use to avoid penalties that may be imposed under U.S. federal tax laws. OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.
Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.