Oakmark Fund: First Quarter 2013

Oakmark is the mutual fund family launched in 1991 by Harris Associates, the Chicago deep-value firm founded in 1976 (about $105bn AUM). Bill Nygren runs the flagship Oakmark Fund and David Herro the Oakmark International Fund, buying businesses at large discounts to intrinsic value and holding them like owners — publishing quarterly fund commentaries, market commentaries and insight articles.

Bill Nygren、David Herro · 1991 · 美国芝加哥Deep value / contrarian long-term

Theme and Background

This section focuses on the long-term and short-term performance of the Oakmark Fund (Investor Class) as of March 31, 2013, and discloses its fee structure. The report aims to present the fund's historical return record since its inception in 1991, providing investors with a performance benchmark.

Core Viewpoint

The report's implicit core judgment is that the Oakmark Fund has achieved significant positive returns over the long term (since inception, 10-year) and short term (1-year, 3-month), with particularly strong short-term performance (1-year return of 15.83%). However, investors should note the erosion of net returns by the gross expense ratio of 1.03%. The report does not offer a clear contrarian market judgment, but the steady long-term returns suggest the strategy's resilience in volatile markets.

Key Arguments and Data

The report supports its view with average annual total return data across multiple time horizons, with all figures retaining their original values:

Time Horizon	Average Annual Total Return
Since Inception (August 5, 1991)	12.67%
10-Year	9.26%
5-Year	9.78%
1-Year	15.83%
3-Month	9.58%

Long-term performance: Annualized return of 12.67% since inception and 9.26% over 10 years, demonstrating sustained growth capability.
Short-term performance: 1-year return of 15.83%, significantly above the long-term average; 3-month return of 9.58%, reflecting favorable recent market conditions.
Fee impact: Gross expense ratio of 1.03% (as of September 30, 2012), which must be deducted from total returns to calculate net returns.

Companies/Assets Involved

Oakmark Fund (Investor Class): The only fund product mentioned in the report. Its role is the subject of performance presentation, with data indicating steady long-term returns and strong short-term performance. The report does not explicitly express a bullish or bearish view, but the high return data implies a positive assessment.

Investment Implications

Short-term opportunity: The 1-year return of 15.83% indicates the fund performed exceptionally well in the recent market (2012-2013). Investors may consider it as a short-term allocation option but should be wary of the risk of a pullback after such high returns.
Fee sensitivity: The gross expense ratio of 1.03% has a significant impact on long-term compounding. Investors should compare fees with similar funds and prioritize lower-cost share classes (e.g., Institutional Class) to enhance net returns.
Long-term holding value: The annualized return of 12.67% since inception (over 20 years) proves the strategy's effectiveness, making it suitable as a core holding, though it should be aligned with individual risk tolerance.