Portfolio Manager Bill Nygren shares why volatility is an opportunity to improve the degree of undervaluation in our portfolios.
The holdings mentioned comprise the following percentages of the Fund’s total net assets as of 12/31/2019:
| Security | Oakmark Fund | Oakmark Select |
|---|---|---|
| Ally Financial | 2.9% | 6.5% |
| Alphabet Cl A | 2.6% | 7.1% |
| Alphabet Cl C | 1.2% | 2.8% |
| Amazon | 0% | 0% |
| American Intl Group | 2.1% | 4.1% |
| Bank of America | 3.6% | 5.4% |
| Boeing | 0% | 0% |
| Capital One Financial | 3.1% | 4.4% |
| CBRE Group Cl A | 0% | 9.0% |
| Citigroup | 3.6% | 7.3% |
| Contra Petroleum | 0% | 0% |
| Delphi Technologies | 0.3 | 0% |
| Delta Airlines | 0 | 0% |
| Diamondback Energy | 1.1% | 0% |
| Disney | 0% | 0% |
| DXC Technology | 1.5% | 0% |
| FedEx | 1.0% | 0% |
| General Electric | 2.2% | 4.3% |
| General Motors | 2.0% | 0% |
| Goldman Sachs | 1.5% | 0% |
| HBO | 0% | 0% |
| Hospital Corp | 0% | 0% |
| Hulu | 0% | 0% |
| Lear | 0% | 3.4% |
| Netflix | 3.1% | 3.8% |
| Qurate Retail Cl A | 0.6% | 1.5% |
| Regeneron Pharmaceuticals | 2.9% | 4.8% |
| Sirius XM Holdings Inc | 0% | 0% |
| Spotify | 0% | 0% |
| Wells Fargo | 2.2% | 0% |
Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.
Access the full list of holdings for the Oakmark Fund as of the most recent quarter-end.
Access the full list of holdings for the Oakmark Select Fund as of the most recent quarter-end.
Average Annual Total Returns (as of 03/31/2020):
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKMX | -30.42% | -21.69% | -3.55% | 1.33% | 7.78% | 10.95% |
| S&P 500 Total Return Index | -19.60% | -6.98% | 5.10% | 6.73% | 10.53% | 9.08% |
Gross Expense Ratio (as of 09/30/2019): 0.92%
Net Expense Ratio (as of 09/30/2019): 0.88%
Fund Inception: 08/05/1991
| Fund | 3 Month | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|
| OAKLX | -32.53% | -24.08% | -10.08% | -3.41% | 5.68% | 9.58% |
| S&P 500 Total Return Index | -19.60% | -6.98% | 5.10% | 6.73% | 10.53% | 7.73% |
Gross Expense Ratio (as of 09/30/2019): 1.07%
Net Expense Ratio (as of 09/30/2019): 1.00%
Fund Inception: 11/01/1996
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.
To obtain most recent month-end performance data, view it here.
The net expense ratio reflects a contractual advisory fee waiver agreement through January 27, 2021.
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.
The price to earnings ratio (“P/E”) compares a company’s current share price to its per-share earnings. It may also be known as the “price multiple” or “earnings multiple”, and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.
EBITDA refers to Earnings Before the deduction of payments for Interest, Taxes, Depreciation and Amortization which is a measure of operating income.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
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.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of the date written and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.
Certain comments herein are based on current expectations and are considered “forward-looking statements”. These forward looking statements reflect assumptions and analyses made by the portfolio managers and Harris Associates L.P. based on their experience and perception of historical trends, current conditions, expected future developments, and other factors they believe are relevant. Actual future results are subject to a number of investment and other risks and may prove to be different from expectations. Readers are cautioned not to place undue reliance on the forward-looking statements.
