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 second quarter of 2020. Even though it lost 6.67% over one year due to the pandemic crash, it bounced back 23% in just three months. Over 10 years, it averaged over 11% annual returns. For regular investors, this shows that short-term losses don't mean the strategy is broken—value investing (buying undervalued companies) can work well over time. The fund's fees are low (under 1% per year), making it a good long-term choice. It's worth reading because it proves that market panics can be buying opportunities.
Oakmark Fund - Investor Class average annualized total returns as of June 30, 2020 show 11.65% since inception on August 5, 1991, 11.33% over 10 years, 5.55% over 5 years, -6.67% over 1 year, and 23.01% over 3 months. In terms of expenses, as of September 30, 2019, the gross expense ratio was 0.92%
This section focuses on the performance of the Oakmark Fund (Investor Class) as of June 30, 2020. The market backdrop involves short-term extreme volatility following the COVID-19 shock. The fund recorded negative returns over a one-year period but showed a strong rebound over three months, highlighting the resilience of a value investing strategy in turbulent markets.
The author’s core investment argument is: Short-term (1-year) performance was dragged down by systemic market risk, resulting in negative returns, but long-term (10-year and since inception) returns remain solid, validating the long-term effectiveness of the value investing strategy. The counterintuitive insight is that despite a 1-year loss of 6.67%, the fund rebounded 23.01% over three months, indicating rapid recovery after panic, and short-term volatility should not obscure long-term value.
| Time Horizon | Annualized Total Return |
|---|---|
| Since Inception (1991.08.05) | 11.65% |
| 10-Year | 11.33% |
| 5-Year | 5.55% |
| 1-Year | -6.67% |
| 3-Month | 23.01% |
This section does not mention specific companies or assets; it only analyzes the performance metrics of the Oakmark Fund itself. The fund is managed by Harris Associates and employs a deep value investing strategy, typically holding undervalued individual stocks.