Technology stocks may be getting all the attention, but Ron Zibelli, lead portfolio manager of the Oppenheimer Discovery Mid Cap Growth Fund, believes there are an abundance of growth opportunities to be found today in other sectors. Keeping the fund diversified across a variety of sectors is also a key part of the fund’s risk management approach.
As Ron explained in a recent profile by Investor’s Business Daily, the team keeps the fund’s sector weightings within 500 basis points of the sector weights for the fund’s benchmark, the Russell Midcap Growth Index.
He and his team believe their strength – and ability to deliver potential value for shareholders – comes from stock selection, rather than by making sector and industry bets.
He offered a number of examples of companies operating in niche markets that his team believes may offer unique growth prospects, including:
- CoStar Group, a provider of real estate data services that has built a sizeable database of commercial and retail real estate properties across the United States and internationally. They are the dominant provider in their market and have successfully grown their earnings significantly in the past year.
- Copart, a company that auctions vehicles online, and has benefitted from consolidation in its industry that has left the firm with few rivals.
- IDEXX Laboratories, a leading provider of testing equipment to veterinarians, has benefitted as economic growth has enabled people to own more pets and care for them better.
To read more about the stocks Ron’s team likes, read the full Investor’s Business Daily profile, OppenheimerFunds Stands Out with Diversified Portfolio.
As of 6/30/18, Oppenheimer Mid Cap Growth Fund had 1.88% of its assets invested in CoStar, 1.83% of its assets invested in Coprat, and 1.81% of its assets invested in Idexx.
OppenheimerFunds is not undertaking to provide impartial investment advice or to provide advice in a fiduciary capacity.
Mutual funds and exchange traded funds are subject to market risk and volatility. Shares may gain or lose value.
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. 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. Diversification does not guarantee profit or protect against loss.