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 shows how Oakmark Fund bought high-quality companies like Salesforce, Accenture, and Netflix when the market panicked over AI disruption fears and geopolitical tensions. The fund argues that these fears are overblown, and the companies' actual businesses remain strong. For everyday investors, the key lesson is not to be swayed by short-term noise—sometimes a stock's drop is a buying opportunity, not a warning. It's worth reading because it demonstrates how professional investors profit by going against the crowd.
Oakmark Fund 2026 First Quarter Report The Oakmark Fund (Investor Class) outperformed its benchmark, the S&P 500 Index, both for the quarter and since inception. The energy and materials sectors contributed the most, while the financials and information technology sectors were the largest detractors
This chapter serves as the opening overview of the Oakmark Fund's first-quarter 2026 report, summarizing the fund's performance during the quarter and since inception, key contributors and detractors, and the latest portfolio adjustments. The report emphasizes that the current market is driven by short-term noise and herd behavior, while the fund adheres to patience and discipline, focusing on long-term fundamental value.
The author's core investment argument is: The market is overly focused on short-term noise (such as geopolitical tensions and fears of AI disruption), leading to mispricing of high-quality companies and creating buying opportunities for long-term value investors. The fund goes against market consensus, adding to positions in software and technology services companies (e.g., Salesforce, Accenture, Adobe) amid AI panic, believing their fundamentals remain robust.
| Company | Role | Key Data | Bullish/Bearish |
|---|---|---|---|
| ConocoPhillips | Top contributor | Benefiting from geopolitical conflicts driving energy prices higher | Bullish |
| Salesforce | Top detractor | Announced $50 billion repurchase authorization and $25 billion accelerated buyback; expects subscription revenue growth to accelerate in H2 2026 | Bullish (views AI panic as a buying opportunity) |
| Accenture | New purchase | Nearly three times the size of the next three publicly listed IT services companies combined; P/E at its lowest since 2015 | Bullish |
| Adobe | New purchase | Earnings multiple compressed over the past two years due to AI concerns; believes its AI strategy is sound | Bullish |
| Marsh & McLennan | New purchase | World's largest insurance broker; purchased at a mid-teens earnings multiple | Bullish |
| Netflix | New purchase | Over 325 million subscribers and $45 billion in revenue; share price fell to its lowest relative valuation since 2022 | Bullish |
| Raymond James | New purchase | EPS grew at a mid-teens rate over the past decade; purchased at a low-teens P/E | Bullish |
| Roper Technologies | New purchase | Vertical software business features deep moats, high gross margins, and high customer retention; sold off due to AI fears | Bullish |
| Synchrony Financial | New purchase | Largest private-label credit card issuer in the U.S.; repurchased nearly 60% of outstanding shares over the past decade | Bullish |
| Sysco | New purchase | One of the world's largest foodservice distributors; share price decline after the Restaurant Depot acquisition provided a buying opportunity | Bullish |