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 through late 2020. Since 1991, it has averaged 12.49% annual returns, similar to its 10-year average, showing steady long-term results. In the last three months of 2020, it jumped 24.22%, much higher than usual, likely from catching the market rebound. Its fees are low—0.91% after a temporary waiver—which helps investors. For regular folks, this fund could be a solid long-term hold, but be aware the fee break ends in 2022, and short-term gains aren't guaranteed.
The Oakmark Fund (Investor Class) report as of December 31, 2020, shows an average annual total return of 12.49% since its inception on August 5, 1991, with returns of 12.50%, 12.40%, 12.90%, and 24.22% over the past 10 years, 5 years, 1 year, and 3 months, respectively. The fund's gross expense rat
This section focuses on the performance and fee structure of the Oakmark Fund (Investor Class) as of December 31, 2020. By presenting annualized total returns over long-term, medium-term, and short-term periods, the report highlights the fund's sustained profitability since its inception in 1991, and discloses its expense ratios along with a temporary fee waiver agreement.
The author's core investment argument is that the Oakmark Fund has delivered steady and consistent returns over nearly 30 years of operation, with its long-term annualized return (12.49%) closely aligning with recent performance (e.g., 1-year return of 12.90%), demonstrating strategy stability. The counterintuitive point is that despite severe market volatility in 2020 (the COVID-19 shock), the fund achieved a 3-month return of 24.22%, far exceeding its long-term average, suggesting that its short-term timing or asset allocation capabilities performed exceptionally well under extreme market conditions.
The report supports its thesis with the following data:
Comparative data is presented in a table:
| Metric | Value |
|---|---|
| Average Annual Return Since Inception (08/05/1991) | 12.49% |
| 10-Year Average Annual Return | 12.50% |
| 5-Year Average Annual Return | 12.40% |
| 1-Year Average Annual Return | 12.90% |
| 3-Month Return | 24.22% |
| Gross Expense Ratio | 0.93% |
| Net Expense Ratio | 0.91% |
This section only covers the Oakmark Fund (Investor Class) itself, without mentioning specific holdings or assets. The fund serves as the subject of analysis, and the report takes a bullish stance, supported by its long-term stable returns and relatively low fees.
For investors, the Oakmark Fund's long-term performance (12.49% average annual return) and low fees (net expense ratio of 0.91%) suggest it is suitable as a long-term holding in a core portfolio. The short-term high return (24.22% over 3 months) may stem from active management amid market volatility but should not be considered the norm. Investors should monitor the risk of a potential increase in the net expense ratio after the fee waiver expires (January 2022) and whether future performance can sustain historical averages.