How a Future-Facing Fund Beat 98% of Its Peers
“Frank Jennings is a futurist with a realist bent,” reports Barron’s Magazine of Frank Jennings, manager of the Oppenheimer Global Opportunities Fund. “The veteran stock picker has built a long track record of imagining the future and finding ways to invest in that vision ahead of the crowd.”

In a question-and-answer feature that appeared on Barron’s website in February 2018, Jennings talked about a range of issues relating to his investment process, philosophy, track record, and experience:

 

  1. On identifying and qualifying stocks for investment: Jennings takes a 10-year view on a stock rather than looking solely at current financial metrics that are available publicly (such as price/earnings or price/earnings-to-growth ratios) or at a company’s prospects for a given quarter. Jennings calls himself a “narrative investor” and looks for a “plot involved in the stocks” he picks—a story that holds a highly lucrative prospect for long-term returns, such as an upside potential of 10 times the stock’s current price over the next 10 years. Essentially, he looks for stocks with massive upside and limited downside.
  2. On mitigating risk: Apart from diversifying his portfolio, Jennings looks carefully at the individuals of each company’s management team and visits companies in person to obtain firsthand impressions of their pulse and operations, of managerial accountability, and of how revenues are generated.
  3. On underappreciated investment themes: Jennings sees solar energy, battery technology, and electric cars as themes with very high potential to produce substantial investment returns, as he foresees widespread use of—and advancements in—all three in the years to come.
  4. On the recent sell-off in equities: Jennings does not express concern over the volatility we’ve experienced lately. He believes it might have had to do with the changing of the guard at the U.S. Federal Reserve—and took advantage of lower prices to enlarge his position in certain stocks he believes have big upside.
  5. On finding new investment ideas: Jennings sees no shortage of investment opportunities. He doesn’t tend to buy initial public offerings (IPOs) but does follow them years later to see whether they’ve gained any traction. Generally, he has a “buy” list longer than the number of holdings in his fund—and that list, in his view, is testament to the amount of investment opportunities out there.
  6. On areas of hype: Jennings sees himself primarily as a long investor rather than a short-seller, though he does believe that Bitcoin and cannabis stocks might be overrated.