Portfolio Managers Bill Nygren and Win Murray answers readers’ investment questions.Read Part I here Read Part II here
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%|
|News Corp Cl A||0.5%||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.
Price-to-cash flow is defined as a stock’s capitalization divided by its cash flow for the latest fiscal year.
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.