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Oppenheimer Quest Balanced Value Still Reigns

Oppenheimer Quest Balanced Value continues to crush the competition.

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Oppenheimer Quest Balanced Value Fund (QVGIX) just keeps finding ways to top its domestic-hybrid rivals. It finished 2000 in the top quartile of the category, and so far in 2001, its 2.9% return lands it in the category's upper reaches. 

Though manager Colin Glinsman rode a big tech stake to great heights in 1999, he slashed the fund's position in the sector late in that year, a move that helped the fund avoid the Nasdaq's wreckage in 2000. Late in 1999, he also added to the fund's financials stake. At that time, stocks like Freddie Mac (FRE) had been largely ignored by the market as growth stocks climbed higher. But Freddie came back with a vengeance in 2000, and Glinsman still considers it a great value because of its increasing market share in the mortgage industry and its still-cheap valuation. In addition, he bought shares of John Hancock (JHF) at its IPO last year, which was another strong financials performer. Glinsman is holding on to Hancock because he says its business is easy to understand and the company is cutting costs. What's more, he thinks it's still cheap, so he's hanging on to a sizable stake in the stock.

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Catherine Hickey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.