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.
This report looks at the Oakmark Fund's performance from 1991 to 2013. The key takeaway: by sticking to value investing (buying undervalued companies), it averaged 12.96% annual returns over 22 years, beating the market. For regular investors, this shows that holding a disciplined fund long-term works better than chasing short-term trends. Even with ups and downs, the fund was profitable over 1, 5, 10, and 22 years. Its fees are reasonable (1.03%), so they don't eat up gains. Worth a read because it proves the power of patience.
The Oakmark Fund (Investor Class) performance review as of September 30, 2013, shows an average annual total return of 12.96% since its inception on August 5, 1991, with returns of 8.79%, 13.66%, 26.75%, and 6.60% over the past 10 years, 5 years, 1 year, and 3 months, respectively. The report's core
This section focuses on the long-term performance of the Oakmark Fund (Investor Class) as of September 30, 2013. By presenting return data across multiple time horizons from inception to the present, the report highlights the fund’s ability to generate sustained excess returns under a value investing strategy and validates the effectiveness of long-term holding discipline.
The author’s central argument is that the Oakmark Fund, through disciplined value stock selection, has achieved returns significantly exceeding market averages over a 22-year period. The counterintuitive insight is that despite frequent short-term market fluctuations, the fund has maintained positive returns across all time horizons—1 year, 5 years, 10 years, and since inception—with a long-term annualized return (12.96%) far exceeding short-term volatility, demonstrating that a long-term holding strategy can effectively smooth risk.
The report supports its thesis with annualized return data across multiple time horizons, preserving all figures:
| Time Horizon | Annualized Total Return |
|---|---|
| Since Inception (08/05/1991) | 12.96% |
| Past 10 Years | 8.79% |
| Past 5 Years | 13.66% |
| Past 1 Year | 26.75% |
| Past 3 Months | 6.60% |
Additionally, the Gross Expense Ratio stands at 1.03%, a reasonable level that does not significantly erode long-term returns.
For investors, the report suggests: Adhere to a long-term holding discipline in a disciplined value investing fund, rather than chasing short-term trends. The specific direction is to select funds with reasonable fees (e.g., 1.03%) and stable long-term historical returns (e.g., 22-year annualized 12.96%), while ignoring short-term volatility to achieve compound growth.