Oakmark Fund: First Quarter 2021

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.

Bill Nygren、David Herro · 1991 · 美国芝加哥Deep value / contrarian long-term

Theme and Background

This section presents the historical performance and fee structure data of the Oakmark Fund (Investor Class) as of March 31, 2021, providing investors with a quantitative validation of the fund's long-term value investing strategy.

Core Viewpoint

The report's implicit core judgment is that the Oakmark Fund has achieved sustained excess returns through its long-term value investing strategy, particularly excelling during one-year market fluctuations (87.43%). Counterintuitively, despite extremely high short-term returns, the 10-year annualized return (13.57%) remains significantly above the comparable benchmark, indicating the strategy's stability over long cycles.

Key Arguments and Data

Long-term Performance: Since inception on August 5, 1991, the cumulative annualized return is 12.93%; the 10-year annualized return is 13.57%.
Short-term Performance: The 1-year return is 87.43%, and the 3-month return is 15.52%, demonstrating the ability to capture gains during market rebounds or volatility.
Fee Structure: The net expense ratio is 0.91% (including an advisory fee waiver agreement effective through January 27, 2022), lower than the gross expense ratio of 0.93%; actual fees may vary.

Time Period	Annualized Total Return
Since Inception (08/05/1991)	12.93%
10-Year	13.57%
5-Year	15.83%
1-Year	87.43%
3-Month	15.52%

Companies/Assets Involved

This section does not mention specific portfolio holdings or assets, focusing solely on the fund's overall performance and fee data.

Investment Insights

Strategy Validation: The long-term value investing strategy can consistently generate excess returns over cycles of 10 years or more (13.57%), making it suitable for investors seeking steady growth.
Short-term Opportunities: The 1-year return of 87.43% indicates the fund's high resilience during extreme market volatility, but such returns should be noted as unsustainable.
Cost Considerations: The net expense ratio of 0.91% is below the industry average (approximately 1.0%-1.5%), and the advisory fee waiver agreement runs through January 27, 2022. Investors should monitor whether fees increase after the waiver expires.