Trying to find underpriced jewels and then holding on to them is the strategy of thousands of mutual funds. Among them is the 14-year-old Oak Value Fund. True to the value mantra, its managers partly follow Buffett's lead — his Berkshire Hathaway is the fund's single largest holding, amounting to 9% of its $135 million in assets.
Value investing often comes into vogue when there is turmoil in the market, and Oak Value has been hitting its mark lately.
After lagging the market badly for several years, the fund is up nearly 8% year to date, surpassing the S&P 500's return by almost three percentage points. Over the past 12 months, Oak Value has surged a more eye-catching 22%, about six points ahead of the index.