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 how the Oakmark International Fund performed in early 2012. The key takeaway: over the long term (since 1992), it has delivered solid annual returns of about 10%, but short-term results swing wildly—down nearly 2% in the past year, yet up almost 17% in just the last three months. For everyday investors, this shows that international stocks can be bumpy, but staying patient for years can pay off. Worth a read because it reminds us not to panic over short-term losses or get carried away by quick gains.
The average annualized total return for the Oakmark International Fund (Investor Class) as of March 31, 2012, shows: 10.22% since inception on September 30, 1992, 7.96% over 10 years, 0.38% over 5 years, -1.86% over 1 year, and 16.80% over the most recent 3 months. The expense ratio (as of September
This section focuses on the investment performance of the Oakmark International Fund (Investor Class) as of March 31, 2012. By presenting average annualized total returns across different time horizons, the report evaluates the fund's long-term and short-term performance in international markets, highlighting its recent significant rebound trend.
The author's core judgment is that the Oakmark International Fund has delivered solid long-term performance (10.22% annualized since inception in 1992), but exhibits notable short-term volatility. Specifically, the 1-year return is negative (-1.86%), while the 3-month return shows a sharp rebound (16.80%), reflecting the cyclical nature of international markets and the resilience of the fund's strategy. The counterintuitive point is that despite weak 5-year and 1-year performance, the strong 3-month rebound may signal improving market sentiment or fundamentals.
The report supports its view with multi-time-horizon data, emphasizing the contrast between long-term and short-term performance:
The comparative data is as follows:
| Time Horizon | Average Annualized Total Return |
|---|---|
| Since Inception (1992/09/30) | 10.22% |
| 10-Year | 7.96% |
| 5-Year | 0.38% |
| 1-Year | -1.86% |
| 3-Month | 16.80% |
This section does not mention specific companies; it only analyzes the fund's overall performance. The fund itself (Oakmark International Fund - Investor Class) is the subject of analysis, and its performance reflects the volatility of international equity markets (particularly non-U.S. markets).
For investors, the data suggests that while international funds may experience significant drawdowns in the short term (e.g., a 1-year loss), long-term holding (over 10 years) can still yield annualized returns close to 8%. The strong 3-month rebound (16.80%) indicates that periods of market panic or downturn (such as after a negative 1-year return) may present opportunities for contrarian positioning. Investors should consider the impact of the fund's expense ratio (1.06%) on net returns and tolerate short-term volatility in exchange for long-term gains.