Value investing redefined

The Oakmark family of mutual funds is an extension of Harris Associates’ value-focused approach to investing. For more about our selection of funds, visit Oakmark.com.

The Oakmark Funds

111 South Wacker Drive, Suite 4600
Chicago, Illinois 60606
1-800-OAKMARK (625-6275)

International Small Cap

International Small Cap portfolios are composed of 35 to 70 attractive small-cap companies from our approved list of international stocks.

Strategy’s Best Use:

Investors seeking long-term appreciation through an allocation to small-cap international stocks.

Portfolio Construction:

Our bottom-up portfolio construction leads to the selection of approximately 35 to 70 attractive small-cap companies from our approved list of international stocks. The market capitalization focus is less than $7.5 billion at the time of initial purchase. We do not strive for specific country, sector, or industry exposure. Instead, these allocations are determined strictly through our stock selection process. 

Typically, they have no more than 30 percent in any country, 25 percent in any industry, and position sizes at the time of purchase are limited to a seven percent maximum. 

Foreign currency exposure may be hedged defensively in the International Small Cap Equity strategy for any currencies that we believe are significantly overvalued. Investment in emerging market securities is permitted only in countries that meet our legal standards.

A Value Approach at Its Core:

International Small Cap Equity portfolios are composed of securities that we believe trade at a significant discount to our estimate of intrinsic value, have intrinsic values that grow with time and have shareholder-oriented management teams. 

Learn more about the investment philosophy and process that guide all strategies at Harris Associates here.

What to Expect as a Client:

You can expect to receive the highest level of care from our experienced and responsive client services team regardless of the size of the portfolio you entrust with us. 

Portfolio Managers

View our Team

Contact Us to Learn More

For questions please contact us or call 312-646-3600.

Commentary

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International Small Cap Strategy

Major global markets finished higher for the second quarter, despite pockets of volatility dispersed throughout the reporting period. Businesses...

Growth of a $10,000 Investment

From 12/31/1998 to 06/30/2020

Growth chart is presented Net of Fees.

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. The gross performance presented below does not reflect the deduction of investment advisory fees. All returns reflect the reinvestment of dividends and capital gains and the deduction of transaction costs. The client’s return will be reduced by the advisory fees and other expenses it may incur in the management of its account.  The advisory fee, compounded over a period of years, will have an adverse effect on the value of the client’s portfolio.

Harris Associates L.P. (Harris Associates) is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The general partnership interest in Harris Associates is owned by Harris Associates, Inc., a corporate subsidiary of Natixis Investment Managers. The International Small Cap Equity Composite includes all fully discretionary, supervised, small-cap, diversified, international equity accounts in excess of $2 million that permit the use of currency hedging.

The MSCI World ex U.S. Small Cap Index (Net) is designed to measure performance of small-cap stocks across 22 of 23 Developed Markets (excluding the United States). The index covers approximately 14% of the free float-adjusted market capitalization in each country. This benchmark calculates reinvested dividends net of withholding taxes. This index is unmanaged and investors cannot invest directly in this index.

Harris Associates claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of Harris Associates’ composite descriptions and/or GIPS® compliant performance presentations, please Contact Us.

Performance Returns

  • Returns % as of 08/31/2020
  • Returns % as of 06/30/2020
Composite Inception: 11/01/1995

Returns for periods of less than one year are not annualized.

Portfolio Characteristics

As of 06/30/2020

Median Market Cap

$2,506 M

Weighted Average Market Cap

$3,227 M

Current Price to Earnings Ratio

12.3

Projected Price to Earnings

10.5

Current Price to Book Ratio

1.2

Projected Price to Book

1.2

Current Price to Cash Flow

12.1

Projected Price to Cash Flow

8.7

Number of Securities

62

Portfolio Turnover

42%

Dividend Yield

3.05%

Beta vs. Benchmark

1.101

Standard Deviation

20.10%

Active Share

96.85%

Equity Sector Breakdowns

As of 06/30/2020

Top 10 Equities and Equivalents

As of 06/30/2020

Total % in Top 10 Holdings 30.5%

Total # of Holdings 62

Portfolio holdings are subject to change and are not intended as recommendations of individual stocks. Individual security weights may not add to the displayed total due to rounding.

Country Allocations

As of 06/30/2020

Emerging Markets consists of: Indonesia, Mexico and South Korea.