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By Ryan Leggio | 08-25-2009 11:37 AM

Uncovering Picks and Pitfalls with a Dual Approach

Oppenheimer Main Street's Mani Govil describes how the fund's quantitative and qualitative processes together lead to portfolio picks and uncover trouble spots.

Ryan Leggio: Hi, my name is Ryan Leggio. I'm a mutual fund analyst here at Morningstar. With me today is Mani Govil, manager of Oppenheimer Main Street. Mani was one of the most successful managers in 2008, when he managed RS Large Cap Alpha. Mani, thanks for joining us today.

Mani Govil: Thanks for having me, Ryan.

Leggio: Mani, I thought I'd ask initially can you talk about your investment process a little bit? I know you use both a qualitative and quantitative process.

Govil: Yeah, Ryan, we basically combine fundamental analysis and quantitative analysis. So on the fundamental side basically we meet with the company, its competitors, suppliers, customers. Basically what is known as Porter's analysis. And try to think through how this company, how its competitors and others, are going to change over the next three to five years, and how much of that is discounted into the stock price. That's the fundamental analysis.

The quantitative analysis is basically looking at all the companies on a quantitative basis, unemotional basis, and basically ranking all these companies. So whenever you have a company that looks very attractive on a fundamental basis and on a quantitative basis, that tends to go into the portfolio.

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