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 covers Oakmark Fund's performance through late 2013. Since its 1991 launch, it averaged 13.35% annual return, but shot up 37.29% in the past year. Its expense ratio is 0.95%—meaning $95 yearly fee per $10,000 invested. For regular investors, the long-term record is solid, but that one-year spike might not last. Don't chase short-term gains. Worth reading because it shows why focusing on long-term results matters more than hot numbers.
Oakmark Fund (Investor Class) performance data as of December 31, 2013 shows an average annual total return of 13.35% since its inception on August 5, 1991, with returns of 8.81%, 22.39%, 37.29%, and 11.54% over the past 10 years, 5 years, 1 year, and 3 months, respectively. The report's core argume
This section focuses on the performance of the Oakmark Fund (Investor Class) as of December 31, 2013, presenting its long-term and short-term return data and disclosing its fee structure. The report aims to provide investors with a historical performance reference for the fund, emphasizing its steady growth since its inception in 1991.
The author's core investment argument is that the Oakmark Fund has achieved significant compounded returns through a long-term value investing strategy, particularly recording a high growth rate of 37.29% in the short term (1 year). However, it should be noted that its expense ratio is 0.95%. Counterintuitively, despite the strong short-term performance, the long-term average annual return (13.35%) is relatively moderate, suggesting that market volatility may impact short-term results.
The report supports its thesis with historical return data, preserving all figures. The comparison data is presented in the table below:
| Time Period | Average Annual Total Return |
|---|---|
| Since Inception (August 5, 1991) | 13.35% |
| Past 10 Years | 8.81% |
| Past 5 Years | 22.39% |
| Past 1 Year | 37.29% |
| Past 3 Months | 11.54% |
Additionally, the Gross Expense Ratio is 0.95%, as of September 30, 2013.
For investors, the Oakmark Fund's long-term return (13.35%) indicates that the value investing strategy is effective over a cycle spanning more than 20 years, but the short-term high return (37.29%) may not be sustainable. Investors should be mindful of the erosion of net returns by the expense ratio (0.95%) and consider maintaining a long-term holding amid market volatility rather than chasing short-term gains.