Portfolio Manager Bill Nygren appeared on “The Investor’s Podcast” to talk about valuation, constructing a portfolio and current holdings.Listen to the podcast here
Average Annual Total Returns (as of 06/31/2019)
|Fund||3 Month||1 Year||3 Year||5 Year||10 Year||Inception|
|S&P 500 Total Return Index||4.30%||10.42%||14.19%||10.71%||14.70%||9.78%|
Gross Expense Ratio (as of 09/30/2018): 0.89%
Net Expense Ratio (as of 09/30/2018): 0.85%
Fund Inception: 08/05/1991
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 holdings mentioned comprise the following percentages of the Oakmark Fund’s total net assets as of 06/30/2019:
|Security Title||Oakmark Fund||Oakmark Select Fund|
|Alphabet Cl C||3.4%||9.2%|
|Bank of America||3.0%||4.7%|
|Capital One Financial||2.9%||4.3%|
|Mastercard Cl A||1.7%||3.0%|
Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks. Current and future portfolio holdings are subject to risk. Portfolio holdings represent only securities held in the U.S. domiciled Oakmark Funds and may not be representative of any other portfolio managed by Harris Associates L.P.
The Price-Earnings Ratio (“P/E”) is the most common measure of the expensiveness of a stock.
The Price to Book Ratio is a stock’s capitalization divided by its book value.
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.
EPS refers to Earnings Per Share and is calculated by dividing total earnings by the number of shares outstanding.
EBIT is a measure of a firm’s profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses.
The 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.
The discussion of the Funds’ investments and investment strategy (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) represents the Funds’ investments and the views of the portfolio managers and Harris Associates L.P., the Funds’ investment adviser, as of the date written and are subject to change without notice.