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)

Private Client

Offering both an equity-focused strategy and a balanced option, Private Client separate account portfolios are built for use when capital preservation and long-term growth are a portfolio’s primary objectives.

Strategy’s Best Use:

High-net-worth families and individuals and related institutions.

Portfolio Construction:

As a customized solution with a focus on capital preservation and long-term growth, these portfolios are built to your specific objectives and preferences regarding risk tolerance, current income, liquidity, time horizon and any other considerations you might require. Portfolios will typically hold 15 to 40 stocks and individual bonds, where appropriate. 

Private Client Equity and Private Client Balanced Strategies:

While each client’s goals may differ, our disciplined, research-based, and value-oriented approach to investing remains the same. As with all our strategies, the Private Client Equity strategy invests in what we see as substantially underpriced companies with strong business fundamentals and proven shareholder-oriented management teams. 

Our Private Client Balanced strategy utilizes the same approach to stock selection as our Private Client Equity strategy, but it will also purchase fixed-income instruments (typically Treasury, agency, municipal and/or corporate securities) based on the client’s income, liquidity, and risk preferences. We utilize our value-based research process to identify corporate debt issues that we believe the market underrates. We typically invest in fixed-income holdings of very high quality with short- to intermediate-term maturities.

Private Client Advisor Strategy:

Our Private Client Advisor Strategy is only available to Registered Investment Advisors (RIAs). This strategy is a way for RIAs to offer separately managed accounts (SMAs) to their clients using our disciplined value approach. These accounts are managed with the same process as our Private Client Equity and Private Client Balanced strategies but with a different fee structure and minimum account size. This strategy is structured so that all portfolios will look identical to one another.

What to Expect as a Client:

You can expect to receive the highest level of care from our experienced and responsive client service team as we help you pursue your investment goals. You will work with the same Portfolio Manager and Portfolio Associate to ensure there is consistency and familiarity with your unique circumstances. We will also collaborate with your other advisors. Our team regularly communicates or interacts with our clients’ accountants and attorneys to discuss taxation, estate planning, charitable giving, and any other issues that could potentially influence the way we manage the portfolio. Harris Associates L.P. does not provide tax or legal advice.  Please consult with a tax or legal professional prior to making any investment decisions.

Portfolio Managers

View our Team

Contact Us

Michael J. Mangan, CFA, CPA

Partner and Portfolio Manager
312.646.3595
mmangan@harrisassoc.com

Growth of a $10,000 Investment

From 12/31/1992 to 06/30/2020

Growth of a $10,000 Investment

From 12/31/1992 to 06/30/2020

Growth charts are 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 Private Client Equity Composite includes all fully discretionary, supervised, individual or institutional, taxable, domestic, equity accounts in excess of $2 million managed following the Private Client Equity Model. The Private Client Balanced Composite includes all fully discretionary, supervised, individual or institutional, taxable, domestic balanced accounts in excess of $2 million

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. Benchmark returns are not covered by the report of the independent verifiers.

The Private Client Balanced custom index is comprised of 60% weight given to the S&P 500 Total Return Index and 40% weight given to the Barclays 4-Year Municipal Bond Index and is rebalanced monthly.

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 06/30/2020
Composite Inception: 01/01/1993

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

Performance Returns

  • Returns % as of 06/30/2020
Composite Inception: 01/01/1993

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

Portfolio Characteristics Private Client Equity

As of 06/30/2020

Median Market Cap

$68,467 M

Weighted Average Market Cap

$263,616 M

Current Price to Earnings Ratio

23.4

Projected Price to Earnings

16.0

Current Price to Book Ratio

2.1

Projected Price to Book

1.9

Current Price to Cash Flow

19.2

Projected Price to Cash Flow

14.7

Number of Securities

35

Portfolio Turnover

23%

Dividend Yield

1.57%

Beta vs. Benchmark

0.905

Standard Deviation

14.64%

Active Share

78.67%

Equity Sector Breakdowns Private Client Equity

As of 06/30/2020

Top 10 Equities and Equivalents Private Client Equity

As of 06/30/2020

Total % in Top 10 Holdings 34.5%

Total # of Holdings 35

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.