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 how the Oakmark Fund performed in the third quarter of 2015. Since its start in 1991, it has averaged a solid 12.44% annual return, but over the past year it lost 4.87%, and in the last three months it dropped 7.93%. For regular investors, this shows that short-term losses don't mean the fund is bad—don't panic and sell. The fund's expense ratio is only 0.87% (the yearly fee taken from your money), which is low and helps your savings grow more over time. It's worth reading because it uses clear numbers to remind you to stay calm during market ups and downs and focus on long-term holding.
Oakmark Fund (Investor Class) report as of September 30, 2015 shows an average annual total return of 12.44% since its inception on August 5, 1991, a 10-year return of 8.12%, a 5-year return of 13.39%, but a 1-year return of -4.87% and a 3-month return of -7.93%. The report's core argument states th
This section focuses on the short-term and long-term performance of the Oakmark Fund (Investor Class) as of September 30, 2015. By comparing returns across different time horizons, the report reveals the market environment in which the fund experienced significant recent drawdowns against a backdrop of steady long-term growth.
The author's core investment argument is that, although the Oakmark Fund has achieved a strong long-term average annual return of 12.44% since its inception in 1991, its short-term returns over the past one year and three months were -4.87% and -7.93%, respectively, indicating that market volatility has significantly impacted the fund. The counterintuitive judgment is that short-term losses do not negate the value of long-term holding, and the fund's low expense ratio (0.87%) may serve as an advantage in weathering volatility.
The report supports the contradiction between long-term stability and short-term volatility through a comparison of time-series data. Specific data are as follows:
| Time Horizon | Return Rate |
|---|---|
| Since Inception (August 5, 1991) | 12.44% |
| 10-Year | 8.12% |
| 5-Year | 13.39% |
| 1-Year | -4.87% |
| 3-Month | -7.93% |
Additionally, the fund's total expense ratio (as of September 30, 2014) is 0.87%, which is relatively low and helps reduce cost erosion over long-term compounding.
For investors, short-term losses (such as the -7.93% three-month return) should not be a reason for panic selling. Instead, they should be evaluated in conjunction with the fund's long-term historical performance (12.44% annualized) and low expense ratio (0.87%). The report suggests focusing on buying opportunities amid market volatility and adhering to a long-term holding strategy to smooth out short-term risks.