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 shows how Oakmark Fund performed from its start in 1991 to mid-2014. The key takeaway: sticking with value investing (buying undervalued stocks) pays off over time. Since launch, the fund averaged 13.40% annual returns, beating the market. Short-term returns (like three months) were only 4.98%, but five- and ten-year returns were over 9%. For regular investors, this means ignore short-term ups and downs, pick a low-cost fund (here, fees are 0.95%), and hold on for the long run to benefit from compounding. It's worth reading because real data shows the power of patience.
The Oakmark Fund (Investor Class) performance report as of June 30, 2014 shows that since its inception on August 5, 1991, the average annual total return has been 13.40%, with returns of 9.19%, 21.50%, 27.71%, and 4.98% over the past 10 years, 5 years, 1 year, and 3 months, respectively. The core a
This section focuses on the long-term performance of the Oakmark Fund (Investor Class) as of June 30, 2014, aiming to demonstrate the fund's sustained return capability since its inception in 1991. Through return data across multiple time horizons, the report highlights the effectiveness of value investing strategies in long-term markets.
The report's central investment argument is that the Oakmark Fund, by consistently adhering to a value investing strategy, has achieved significant excess returns across multiple time dimensions. Notably, its annualized return since inception stands at 13.40%, far exceeding the market average. A counterintuitive insight is that despite a short-term (3-month) return of only 4.98%, long-term returns (10-year, 5-year) remain above 9%, indicating that short-term volatility does not impede long-term value accumulation.
The report provides complete performance data from the fund's inception on August 5, 1991, through June 30, 2014. All returns are annualized total returns. Key data are as follows:
| Time Horizon | Annualized Total Return |
|---|---|
| Since Inception (1991/08/05) | 13.40% |
| 10-Year | 9.19% |
| 5-Year | 21.50% |
| 1-Year | 27.71% |
| 3-Month | 4.98% |
Additionally, the report discloses a total expense ratio of 0.95% as of September 30, 2013. This fee level is in the moderate-to-low range among actively managed funds, helping to enhance net returns.
This section does not mention specific companies or assets, focusing solely on the fund's own performance. The report implicitly favors the value stock portfolio held by the Oakmark Fund, with its long-term return data supporting the effectiveness of the value investing strategy.
For investors, the core takeaway from this section is that holding a value-oriented fund (such as the Oakmark Fund) over the long term can generate significant returns through compounding, particularly with robust performance over 5-year (21.50%) and 10-year (9.19%) horizons. Investors should ignore short-term fluctuations (e.g., a 3-month return of only 4.98%), concentrate on long-term value investing strategies, and pay attention to the impact of the expense ratio (0.95%) on net returns. The specific direction is to prioritize low-cost, long-term stable value funds and avoid frequent trading driven by short-term market volatility.