Investment Management

Investment Management Philosophy

Our experience tells us that an investment management offering that does not use a thoughtful, systematic process to identify investment opportunities is more likely to:  1) result in portfolios that are simply hodgepodges of random stocks, 2) deliver results that are less likely to meet client expectations, and 3) not be understood by anyone!

So how does it work?

Just remember SMR: Sales, Margins, Return on Invested Capital. These are the fundamental drivers of corporate profitability, which ultimately drives stock performance.


How Does it Work? S - Sales, M - Margins, R - Return on Invested Capital. These are the fundamental drivers of corporate profitability, which ultimately drive stock performance.


Oak Harvest’s Investment Committee searches for companies with 3 clear trends:

  • They are generating growing Sales
  • They have stable or improving Margins
  • They demonstrate stable to improving Return on invested capital


We believe it’s critical to have a fundamentally driven, systematic process for stock analysis and selection in place. It provides the best opportunity to generate consistent returns over time.


Quantamental Investing: The fundamentally driven, systematic framework utilized by Oak Harvest’s Investment Committee to conduct stock research, analysis, and selection of investment opportunities for inclusion in our portfolios.

The Quick n’ Dirty Process Overview

  1. Apply our quantitative SMR screen to a broad universe of 28,000+ stocks
  2. Identify a narrow set of names that meet our SMR trend criteria
  3. Overlay those names with sound fundamental research to determine if the identified SMR trends are both repeatable and durable
  4. Use our analysis to narrow the universe to a list of investment opportunities
  5. Assess the price currently offered by the market for these investment opportunities and any technical factors
  6. Select those opportunities that represent the best risk/reward potential for inclusion as positions in a portfolio
  7. Size the selected positions based on risk/reward, portfolio make-up, and investment objectives



Investment Team

What about different Model Portfolios?

The same factors that are important to a company’s ability to grow earnings and cash flow are also vital to a company’s ability to grow and paying dividends!  It is merely a capital allocation decision on the part of the company.  Reinvest back into the business or pay out excess earnings/cash flow in dividends to shareholders.  This is why you will see some overlap in holdings between OHFG model portfolios.  We focus on the research process and put the individual names where they are best suited.  Sometimes, names qualify across more than one model.


What is our SELL discipline and what about Risk Management?

When any of the criteria used to buy a stock are no longer valid, a position becomes candidate for sale.  Risk-management is built in during portfolio construction via diversification across sectors and position sizing.  No single position should impair the entire model portfolio.   Proper asset allocation on the part of planners is also a key means of risk management at the client level.

Give us a call to speak to one of our specialists and learn about how the Investment Team at Oak Harvest may be able to help you prepare for a more fulfilling retirement!



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