Portfolio Manager Bill Nygren discusses the growth versus value performance chasm, the difficulty of marketing timing, value traps and more during an interview with The Motley Fool.
Average Annual Total Returns (as of 12/31/2023):
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKMX | 12.92% | 30.89% | 15.02% | 16.89% | 11.33% | 12.72% |
| S&P 500 Total Return Index | 11.69% | 26.29% | 10.00% | 15.69% | 12.03% | 10.25% |
Fund Inception: 08/05/1991
Expense Ratio: 0.89%
Expense ratios are as of the Fund’s most recent prospectus dated January 28, 2023; actual expenses may vary.
Returns for periods of less than one year are not annualized.
To obtain most recent Oakmark Fund month-end performance data, view it here.
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKLX | 14.61% | 43.00% | 13.99% | 15.94% | 8.86% | 11.80% |
| S&P 500 Total Return Index | 11.69% | 26.29% | 10.00% | 15.69% | 12.03% | 9.30% |
Fund Inception: 11/01/1996
Expense Ratio: 0.98%
Expense ratios are as of the Fund’s most recent prospectus dated January 28, 2023; actual expenses may vary.
Returns for periods of less than one year are not annualized.
To obtain most recent Oakmark Select Fund month-end performance data, view it here.
The holdings mentioned comprise the following percentages of total net assets as of 12/31/2023:
| Security | Oakmark Fund | Oakmark Select |
|---|---|---|
| Alphabet Cl | 3.3% | 6.5% |
| Amazon.com | 1.2% | 0% |
| American Express | 2.3% | 3.3% |
| Apple | 0% | 0% |
| Capital One Financial | 2.8% | 6.6% |
| Charles Schwab | 2.1% | 5.7% |
| Chevron | 0% | 0% |
| ConocoPhillips | 2.6% | 2.9% |
| EOG Resources | 2.1% | 1.7% |
| Equifax | 1.1% | 0% |
| Exxon | 0% | 0% |
| Fortune Brands Innovations | 1.4% | 0% |
| Hess | 0% | 0% |
| HSBC | 0% | 0% |
| Intercontinental Exchange | 2.8% | 5.0% |
| Masco | 1.8% | 0% |
| Mastercard | 0% | 0% |
| Netflix | 0% | 0% |
| Occidental | 0% | 0% |
| Pioneer Natural | 0% | 0% |
| Pulte | 0% | 0% |
| Ryanair | 0% | 0% |
| Synchrony | 0% | 0% |
| TE Connectivity | 0.9% | 0% |
| Visa | 0% | 0% |
| Wells Fargo | 2.6% | 3.8% |
Portfolio holdings are not intended as recommendations of individual stocks and are subject to change. The Funds disclaim any obligation to advise shareholders of such changes. Information about portfolio holdings does not represent a recommendation or an endorsement to Fund shareholders or other members of the public to buy or sell any security contained in the Funds’ portfolios. Portfolio holdings are current to the date listed but are subject to change any time. There are no assurances that the securities will remain in the Funds’ portfolios after the date listed or that the securities that were previously sold may not be repurchased.
Access the full list of holdings for the Oakmark Fund here.
Access the full list of holdings for the Oakmark Select Fund here.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of the date written and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.
Certain comments herein are based on current expectations and are considered “forward-looking statements”. These forward looking statements reflect assumptions and analyses made by the portfolio managers and Harris Associates L.P. based on their experience and perception of historical trends, current conditions, expected future developments, and other factors they believe are relevant. Actual future results are subject to a number of investment and other risks and may prove to be different from expectations. Readers are cautioned not to place undue reliance on the forward-looking statements.
Past performance is no guarantee of future results. The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted. Total return includes change in share prices and, in each case, includes reinvestment of dividends and capital gain distributions. The investment return and principal value vary so that an investor’s shares, when redeemed, may be worth more or less than the original cost.
The price to earnings ratio (“P/E”) compares a company’s current share price to its per-share earnings. It may also be known as the “price multiple” or “earnings multiple”, and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.
The Price to Book Ratio is a stock’s capitalization divided by its book value.
TSR refers to Total Shareholder Return and is s calculated by taking the sum of all capital gains and dividends produced over a specified period, then dividing it by the original investment amount.
EPS refers to Earnings Per Share and is calculated by dividing total earnings by the number of shares outstanding.
The EV/EBIT ratio is the enterprise value to earnings before interest and taxes (EV/EBIT) ratio is a metric used to determine if a stock is priced too high or too low.
The EV/FCF multiple is the ratio between enterprise value and free cash flow.
The EV/EBITA ratio is a comparison of Enterprise Value and Earnings before the deduction of expenses for Interest, Taxes and Amortization which is a measure of operating income.
The S&P 500 Total Return Index is a float-adjusted, capitalization-weighted index of 500 U.S. large-capitalization stocks representing all major industries. It is a widely recognized index of broad, U.S. equity market performance. Returns reflect the reinvestment of dividends. This index is unmanaged and investors cannot invest directly in this index.
The NASDAQ-100 Index includes 100 of the largest domestic and international non-financial companies listed on The NASDAQ Stock Market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.
The NASDAQ Composite Index is a broad-based market-capitalization weighted index of all common type stocks on the NASDAQ Stock Market, including common stocks, American depositary receipts, ordinary shares, shares of beneficial interest or limited partnership interests, and tracking stocks. The index includes all NASDAQ listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debentures. This index is unmanaged and investors cannot invest directly in this index.
Russell 1000® Growth Index is an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. This index is unmanaged and investors cannot invest directly in this index.
The Oakmark Fund’s portfolio tends to be invested in a relatively small number of stocks. As a result, the appreciation or depreciation of any one security held by the Fund will have a greater impact on the Fund’s net asset value than it would if the Fund invested in a larger number of securities. Although that strategy has the potential to generate attractive returns over time, it also increases the Fund’s volatility.
Because the Oakmark Select Fund is non-diversified, the performance of each holding will have a greater impact on the Fund’s total return, and may make the Fund’s returns more volatile than a more diversified fund.
Oakmark Select Fund: The stocks of medium-sized companies tend to be more volatile than those of large companies and have underperformed the stocks of small and large companies during some periods.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
