Oakmark Fund: Second 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 performance of the Oakmark Fund (Investor Class) as of June 30, 2013, presenting its long-term return data since its inception in 1991 and disclosing the fund's expense ratio. The report aims to provide investors with a historical performance reference for the fund, emphasizing its long-term stability and recent high returns.

Core Viewpoint

The implicit core investment thesis of the report is that the Oakmark Fund has achieved significant positive returns (annualized 12.79%) over the long term (since its inception in 1991), and its recent 1-year return (26.41%) far exceeds the long-term average, indicating that its stock selection strategy has been effective in specific market conditions. However, it should be noted that the expense ratio (1.03%) will erode net returns, and investors should assess the impact of fees on long-term returns.

Key Arguments and Data

Long-Term Performance: Since its inception on August 5, 1991, the annualized total return is 12.79%, with a significant cumulative return over 22 years.
Medium-Term Performance: The 10-year annualized return is 8.13%, and the 5-year annualized return is 11.90%, both higher than the long-term average, indicating strong recent performance.
Short-Term Surge: The 1-year return is as high as 26.41%, and the 3-month return is 5.36%, suggesting that the recent market environment has been favorable for the fund's holdings.
Fee Impact: The total expense ratio (as of September 30, 2012) is 1.03%, higher than the industry average, and its drag on net returns should be considered.

Comparison Data Table:

Time Period	Annualized Total Return (%)
Since Inception (1991/08/05)	12.79
10-Year	8.13
5-Year	11.90
1-Year	26.41
3-Month	5.36

Companies/Assets Involved

Oakmark Fund (Investor Class): The fund analyzed in the report, with no specific holdings mentioned. The report does not explicitly take a bullish or bearish stance but implies its long-term investment value through performance data.

Investment Insights

Long-Term Holders: The fund's long-term annualized return of 12.79% makes it suitable for investors seeking steady growth, though they must accept the 1.03% expense ratio.
Short-Term Traders: The recent 1-year return of 26.41% suggests that short-term volatility may be high, and investors should be wary of the risk of a pullback after such high returns.
Fee-Sensitive Investors: The expense ratio of 1.03% is higher than that of index funds; investors should compare fees with similar actively managed funds to assess whether the premium is worth paying.