CIO-U.S. and Portfolio Manager Bill Nygren discussed Harris | Oakmark’s value investment philosophy and research process and how to find opportunities in non-traditional value names during a “Behind the Balance Sheet” interview.
Average Annual Total Returns (as of 06/30/2024):
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKMX | -3.98% | 18.01% | 8.60% | 14.68% | 11.17% | 12.72% |
| S&P 500 Index | 4.28% | 24.56% | 10.01% | 15.05% | 12.86% | 10.57% |
Fund Inception: 08/05/1991
Expense Ratio: 0.91%
Expense ratios are as of the Fund’s most recent prospectus dated January 28, 2024; 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.
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. 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 holdings mentioned comprise the following percentages of total net assets as of 08/31/2024:
| Security | Oakmark Fund |
|---|---|
| Alphabet Cl A | 3.1% |
| Amazon | 0% |
| Apple | 0% |
| Bank of America | 2.0% |
| Citigroup | 2.9% |
| Digital Equipment Corporation | 0% |
| Fiserv | 3.0% |
| General Motors | 3.0% |
| Kraft Heinz | 0% |
| Meta | 0% |
| Microsoft | 0% |
| Netflix | 0% |
| NVIDIA | 0% |
| SalesForce | 2.0% |
| Warner Bros Discovery | 1.5% |
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.
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.
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.
According to Morningstar, the Morningstar Manager of the Year award is presented to portfolio managers based on the managers’ (i) “ability to generate exceptional returns;” (ii) “willingness to align their interests with shareholders;” and (iii) “courage to stay with their strategies in order to produce superior risk-adjusted returns in the end.
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.
EBITDA refers to Earnings Before the deduction of payments for Interest, Taxes, Depreciation and Amortization which is a measure of operating income.
EPS refers to Earnings Per Share and is calculated by dividing total earnings by the number of shares outstanding.
Magnificent 7 stocks refer to Alphabet Class A, Amazon.com, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.
BRICS is an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.
GAAP refers to generally accepted accounting principles.
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 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.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
