Strategies + Vehicles

Custom Managed Accounts

For more than three decades, we have managed separate accounts for wealthy individuals, foundations, endowments, pension plans, institutions, mutual funds and other clients. All have benefited from our extensive experience in meeting the needs of diverse groups of investors. We are particularly proud of our longstanding client relationships.

Sticking to a consistent, firm-wide investment philosophy and process, our portfolio managers build each separate account portfolio stock by stock. And because client needs and markets constantly change, the separate account relationship is dynamic. Our portfolio managers are skilled at adjusting portfolios to reflect changing conditions.

Equity Accounts

Our equity portfolios are generally composed of securities that we believe have attractive valuations, excellent appreciation potential, a high degree of management ownership and limited downside risk. This approach has yielded above-average investment returns over the long term with below-average volatility and risk.

Our portfolio managers use the Harris Associates list of approved stocks to customize focused investment portfolios based on a client’s assets, liquidity needs and willingness to risk tolerance. We continually monitor each client’s portfolio to ensure that it conforms to the client’s stated investment guidelines.

Balanced Accounts

Our balanced accounts seek to preserve capital while providing capital appreciation. Most of these portfolios have significant exposure to equities and we use fixed-income instruments (typically Treasury, agency, municipal and/or corporate securities) to satisfy the client’s income, liquidity and risk preferences.

We rely on our value-based research process to identify corporate issues that the market undevalues. We typically invest in fixed-income holdings of high quality and with short- to intermediate-term maturities.

International Accounts

Our international team searches both established and emerging markets for businesses that are priced substantially below our estimates of their intrinsic value and led by management teams likely to grow that value.

To identify the most promising investment opportunities, our international analysts frequently meet with top executives and conduct first-hand inspections of company facilities. Our international portfolio decisions emphasize company quality over the macroeconomic trends in any given country.

For Accredited Investors

Harris Associates provides access to some of its investment strategies via commingled vehicles that are available only to accredited investors and/or qualified purchasers, as defined by the Securities Act of 1933 or ERISA-qualified retirement plans and certain other government plans.

These vehicles employ the same disciplined, value-focused philosophy and the same bottom-up process for stock selection as other vehicles at Harris Associates.

Securities eligible for consideration must possess three key characteristics:

• A price that represents a substantial discount to the underlying economic value
• A business value that grows over time
• A shareholder-oriented management team

For more information about commingled vehicles available at Harris Associates, please contact us here.

For Financial Advisors

Over the years, Harris Associates has developed strong relationships with investment intermediaries. Our desire to address their needs led us to introduce sub-advisory services, which we now offer to a select group of investment advisors.

Our sub-advisory services draw upon our in-house system capabilities, operational expertise and experienced staff. We can provide a unique service for the financial advisor who wants to add separately managed accounts to his or her practice.

We offer direct contact with a dedicated and experienced portfolio manager who can assist advisors. The degree of client communication can be customized to meet the advisor’s specific goals regarding portfolio restrictions, diversification and tax issues.

For more information about the sub-advisory services available at Harris Associates, please contact us here.

Our Family of Funds

The Oakmark Funds is a family of mutual funds rooted in Harris Associates’ value-focused approach to investing. The funds are available directly from Harris Associates and also through financial advisors and other intermediaries.

Oakmark Fund

The Oakmark Fund invests in big businesses, seeking those that represent the most attractive values relative to their price. Bill Nygren, Michael Nicolas and Robert Bierig manage the Fund.

Oakmark Select Fund

Oakmark Select is a non-diversified fund that seeks long-term capital appreciation. The Fund targets mid- and large-cap U.S. companies and typically holds approximately 20 companies. Bill Nygren, Robert Bierig and Alex Fitch manage the Fund.

Oakmark Global Fund

Oakmark Global invests in a diversified portfolio of equity securities around the world. The fund targets small-, mid- and large-cap companies in pursuit of long-term capital growth. David Herro, Tony Coniaris, Jason Long, Colin Hudson and John Sitarz manage the Fund.

Oakmark Global Select Fund

Oakmark Global Select invests in approximately 20 larger cap companies from around the world. Approximately half of the holdings in this non-diversified Fund are typically U.S.-based and the other half are international companies. David Herro, Tony Coniaris, Eric Liu, Colin Hudson and John Sitarz manage the Fund.

Oakmark International Fund

Oakmark International invests in a diversified portfolio of common stocks of non-U.S. companies. The fund generally focuses on companies with a market cap of $7.5 billion and up. The Fund may also invest in emerging markets. David Herro, Michael Manelli and Eric Liu manage the Fund.

Oakmark International Small Cap Fund

Oakmark International Small Cap pursues long-term capital growth via a diversified portfolio of non-U.S. companies with a market capitalization less than $7.5 billion at the time of investment. David Herro, Michael Manelli and Justin Hance manage the Fund.

Oakmark Equity and Income Fund

Oakmark Equity and Income seeks current income as well as preservation and long-term growth of capital. It invests in a diversified portfolio of equity and fixed-income securities. Colin Hudson, Adam Abbas, Michael Nicolas and Alex Fitch manage the Fund.

Oakmark Bond Fund

Oakmark Bond invests primarily in a diversified portfolio of bonds and other fixed income securities. Adam Abbas and Colin Hudson manage the Fund.

The Oakmark Equity and Income Fund invests in medium- and lower-quality debt securities that have higher yield potential but present greater investment and credit risk than higher-quality securities. These risks may result in greater share price volatility. An economic downturn could severely disrupt the market in medium- or lower-grade debt securities and adversely affect the value of outstanding bonds and the ability of the issuers to repay principal and interest.

The Oakmark, Global and International Fund portfolios tend 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 and Oakmark Global Select Funds are non-diversified, the performance of each holding will have a greater impact on the Funds’ total return and may make the Funds’ returns more volatile than a more diversified fund. 

The stocks of smaller companies often involve more risk than the stocks of larger companies. Stocks of small companies tend to be more volatile and have a smaller public market than stocks of larger companies. Small companies may have a shorter history of operations than larger companies, may not have as great an ability to raise additional capital and may have a less diversified product line, making them more susceptible to market pressure.

Investing in foreign securities presents risks that in some ways may be greater than U.S. investments. Those risks include: currency fluctuation; different regulation, accounting standards, trading practices and levels of available information; generally higher transaction costs; and political risks. 

The stocks of smaller companies often involve more risk than the stocks of larger companies. Stocks of small companies tend to be more volatile and have a smaller public market than stocks of larger companies. Small companies may have a shorter history of operations than larger companies, may not have as great an ability to raise additional capital and may have a less diversified product line, making them more susceptible to market pressure. 

The Oakmark Bond Fund invests primarily in a diversified portfolio of bonds and other fixed-income securities. These include, but are not limited to, investment grade corporate bonds; U.S. or non-U.S.-government and government-related obligations (such as, U.S. treasury securities); below investment-grade corporate bonds; agency mortgage backed-securities; commercial mortgage- and asset-backed securities; senior loans (such as, leveraged loans, bank loans, covenant lite loans, and/or floating rate loans); assignments; restricted securities (e.g., Rule 144A securities); and other fixed and floating rate instruments. The Fund may invest up to 20% of its assets in equity securities, such as common stocks and preferred stocks. The Fund may also hold cash or short-term debt securities from time to time and for temporary defensive purposes.

Under normal market conditions, the Fund invests at least 25% of its assets in investment-grade fixed-income securities and may invest up to 35% of its assets in below investment-grade fixed-income securities (commonly known as “high-yield” or “junk bonds”).

Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments.

Bond values fluctuate in price so the value of your investment can go down depending on market conditions.

Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.