An area of strength at Oak Associates is its tenured portfolio management team, which boasts 20 years of average tenure at the firm. This experience builds confidence as long-tenured managers have been through multiple market cycles. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the second most-expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. Oak Associates strategies have failed to have lengthy success. In particular, the firm's three-year risk-adjusted success ratio demonstrates that only 29% have both survived and beaten their respective category median on a risk-adjusted basis. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development.
Category
A category is a way to group investments based on similar risk, return, and behavior profiles.