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 covers the Oakmark International Fund's performance through mid-2012. Since its launch in 1992, it has averaged a 9.49% annual return, but in the past year it lost 13.64%, and over five years it was down 2.36%. For regular investors, this means international stocks can be risky in the short term, but long-term holding might still pay off. It's worth reading because it shows that past long-term gains don't protect against recent losses, and the fund's 1.06% annual fee eats into returns, especially when markets are down.
The Oakmark International Fund (Investor Class) report as of June 30, 2012, shows an average annual total return of 9.49% since its inception on September 30, 1992, but recent performance has been under pressure: a 10-year return of 7.05%, a 5-year return of -2.36%, a sharp 1-year decline of -13.64%
This section focuses on the performance of the Oakmark International Fund (Investor Class) as of June 30, 2012. By presenting returns across different time horizons, the report reveals the fund's solid long-term performance (an average annual return of 9.49% since its inception in 1992), but also highlights significant recent pressure (1-year and 5-year periods), particularly a sharp 1-year decline of -13.64%, reflecting the impact of global market volatility on international portfolios.
The author's core judgment is that the fund's long-term investment value remains intact (with an average annual return close to 10% since inception), but it faces severe short-term challenges, requiring investors to be wary of the erosion of net asset value from market downside risks. The counterintuitive point is that despite a negative 5-year return (-2.36%), the 10-year return still stands at 7.05%, indicating that long-term holding can smooth out short-term volatility. However, the magnitude of recent losses (1-year -13.64%) may test investor patience.
| Time Horizon | Return | Notes |
|---|---|---|
| Since Inception (1992/09/30) | 9.49% | Long-term average annual compound growth |
| 10 Years | 7.05% | Medium-term performance below long-term average |
| 5 Years | -2.36% | Negative return, indicating market pressure |
| 1 Year | -13.64% | Significant loss, notable short-term risk |
| 3 Months | -10.14% | Recent accelerated decline |
This section does not mention specific companies or assets, focusing solely on the fund's overall performance data. The fund itself is the subject of analysis, but no portfolio details are disclosed.