Oakmark Fund: First Quarter 2022

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 performance and expense data of the Oakmark Fund (Investor Class) as of March 31, 2022, aiming to showcase the fund's long-term return track record since its inception in 1991 and to disclose recent short-term volatility and fee structure.

Core Thesis

The report's implicit core argument is that the Oakmark Fund has delivered solid long-term performance, with an annualized return of 12.94% since inception. However, a short-term drawdown of -2.63% occurred in the recent period (first quarter of 2022), highlighting the need to monitor the impact of market volatility on short-term performance. On the fee side, the net expense ratio (0.91%) is lower than the gross expense ratio (0.93%), benefiting from a contractual advisory fee waiver agreement in effect through January 27, 2023.

Key Arguments and Data

Long-Term Performance: Since its inception on August 5, 1991, the average annual total return stands at 12.94%. Returns over the past 10 years, 5 years, and 1 year are 13.80%, 13.73%, and 13.12%, respectively, indicating a long-term growth trend.
Short-Term Volatility: The return over the past 3 months is -2.63%, reflecting the market downturn pressure in the first quarter of 2022.
Fee Structure: The gross expense ratio is 0.93%, while the net expense ratio is 0.91%. The latter is reduced due to a contractual advisory fee waiver agreement, which is in effect through January 27, 2023.

Time Period	Average Annual Total Return
Since Inception (08/05/1991)	12.94%
Past 10 Years	13.80%
Past 5 Years	13.73%
Past 1 Year	13.12%
Past 3 Months	-2.63%

Fee Type	Ratio
Gross Expense Ratio	0.93%
Net Expense Ratio	0.91%

Companies/Assets Involved

Oakmark Fund (Investor Class): The subject of the report; no specific portfolio holdings are mentioned. The fund's performance data is used to evaluate the effectiveness of its investment strategy, but no individual stock analysis is provided.

Investment Implications

Long-Term Holders: The fund's historical annualized return exceeds 12%, making it suitable for investors seeking long-term growth, though tolerance for short-term volatility (e.g., -2.63% in Q1 2022) is required.
Fee-Sensitive Investors: The net expense ratio of 0.91% is below the peer average, and the waiver agreement through January 2023 keeps near-term fee pressure manageable. However, attention should be paid to the potential fee increase after the waiver expires.
Short-Term Traders: The recent negative return signals market risk; short-term data should not be used to justify chasing gains or panic selling.