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 September 2014. The fund has a strong long-term track record, averaging over 10% annual returns since 1992. But in the past year it lost 0.64%, and in the last three months it dropped over 7%. For regular investors, this shows that international stocks can be volatile in the short term, due to global economic risks and currency shifts. While long-term investing still makes sense, you should be cautious about short-term losses, especially since the fund charges a 0.98% annual fee, which eats into returns when markets fall. Worth a read because it reminds us not to focus only on long-term gains, but also on current market conditions.
The Oakmark International Fund (Investor Class) report as of September 30, 2014, shows that since its inception in September 1992, the fund has achieved an average annual total return of 10.54%, with a 10-year return of 9.37%, a 5-year return of 10.61%, but a 1-year return of -0.64% and a 3-month de
This section focuses on the short-term and long-term performance of the Oakmark International Fund (Investor Class) as of September 30, 2014. The report notes that although the fund has achieved an impressive average annual total return of 10.54% since its inception in 1992, its 1-year return is negative (-0.64%), and it has declined by 7.03% over the most recent 3 months, reflecting the significant impact of recent market volatility on the fund's net asset value.
The author's core judgment is that the fund demonstrates solid long-term performance (22-year annualized return exceeding 10%) but faces notable short-term downside risks. The counterintuitive aspect is that while the 10-year and 5-year returns remain high at 9.37% and 10.61%, respectively, the negative 1-year return and sharp 3-month decline indicate that the current market environment is pressuring international portfolios. Investors must be wary of short-term volatility eroding their holdings.
| Time Horizon | Return | Notes |
|---|---|---|
| Since Inception (09/1992) | 10.54% | 22-year annualized |
| 10-Year | 9.37% | Above long-term average |
| 5-Year | 10.61% | Above long-term average |
| 1-Year | -0.64% | Negative return |
| 3-Month | -7.03% | Sharp decline |
This section does not mention specific companies or assets, focusing solely on the fund's overall performance data. The fund's portfolio likely includes international equities, but the original text does not disclose holding details.
For investors, the negative 1-year return and sharp 3-month decline suggest that international equity markets may be in a period of adjustment, warranting attention to global macroeconomic risks (e.g., a strengthening US dollar, emerging market pressures). Long-term investors may consider bargain hunting, but short-term caution is advised against further downside risk, especially as the 0.98% expense ratio amplifies losses in a negative-return environment. It is recommended to assess risk exposure based on the fund's portfolio structure (e.g., geographic and sector allocations).