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 by Oakmark's international equity team explains how AI innovation caused surprising market shifts in early 2026. Many investors piled into AI stocks, leaving other good companies undervalued. For regular investors, this means you shouldn't blindly chase AI trends. Instead, look for quality companies that are overlooked. It's worth reading because it reminds you to avoid hype and focus on long-term value to reduce risk.
Oakmark International Stock Co-Lead Portfolio Manager Tony Coniaris Reviews Q1 2026 Market Dynamics Tony Coniaris, Co-Lead Portfolio Manager of Oakmark International Stock, reviews the market dynamics of the first quarter of 2026, noting that AI innovation has had a dramatic impact on the global lan
This section, authored by Tony Coniaris, Co-Chief Investment Officer of Oakmark International Equity, reviews global market dynamics in the first quarter of 2026. The report notes an unexpected shift in the market, with AI innovation exerting a dramatic impact on the global landscape, and analyzes how these factors shaped the portfolio's performance during the quarter.
The author's core investment thesis is that the market is undergoing a structural transformation driven by AI innovation, but investors should be wary of the risks of overconcentration in a few AI beneficiaries. The counterintuitive judgment is that while AI presents immense opportunities, chasing short-term hotspots may carry risks, and a long-term value-oriented approach should be maintained, focusing on undervalued high-quality companies unrelated to AI.
This section does not mention specific company or asset names, only using general descriptions such as "portfolio holdings" and "traditional holdings." The author does not explicitly take a bullish or bearish stance on any particular target but implies attention to high-quality companies unrelated to AI.
For investors, the report suggests avoiding blindly chasing AI hotspots and instead uncovering high-quality non-AI companies overlooked by the market, based on a long-term value logic. At the same time, it is necessary to be cautious of the valuation bubble risk arising from excessive concentration in AI themes, maintaining portfolio diversification and resilience.