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 late 2014. While it lost 5.41% over the past year, its long-term track record is strong: an average annual return of 10.39% since 1992, and 7.99% over 10 years. For everyday investors, this shows that short-term market swings (like a strong dollar hurting returns) are normal. Don't panic-sell after one bad year. Instead, stay patient to benefit from compounding. The fund's expense ratio of 0.95% is reasonable, making it worth a look for long-term holdings.
Oakmark International Fund (Investor Class) Long-Term Performance as of December 31, 2014 Since its inception on September 30, 1992, the fund has achieved an annualized return of 10.39%. Over the past 10 years, the annualized return stands at 7.99%, and over the past 5 years, it is 9.56%. However, t
This section focuses on the performance of the Oakmark International Fund (Investor Class) as of December 31, 2014, aiming to demonstrate its long-term investment value. The market backdrop is characterized by heightened volatility in global equity markets and a strengthening US dollar, which pressured returns on international investments, leading to short-term performance headwinds.
The report’s central argument is that, despite the fund’s poor short-term performance (over 1 year and 3 months), its long-term returns (since inception in 1992, over 10 years, and over 5 years) are robust, highlighting the effectiveness of a long-term investment strategy. The counterintuitive insight is that the short-term loss (-5.41%) should not be overinterpreted, as the long-term annualized return exceeds 10%, indicating that market volatility is normal and investors should remain patient.
The report supports the long-term investment value thesis by comparing returns across multiple time horizons. Key data are as follows:
| Time Horizon | Annualized Return |
|---|---|
| Since Inception (September 30, 1992) | 10.39% |
| 10 Years | 7.99% |
| 5 Years | 9.56% |
| 1 Year | -5.41% |
| 3 Months | -0.45% |
This section does not mention specific companies or assets, focusing solely on the fund’s overall performance. The fund itself is an investment vehicle, and the report implicitly holds a bullish view on its long-term value.
Investors should ignore short-term market noise and adhere to a long-term holding strategy. Specific directions: For existing investors in the fund, there is no need to panic and redeem due to the 1-year loss; for potential investors, the current short-term pullback could be considered an opportunity to accumulate positions, leveraging the long-term compounding effect. The expense ratio of 0.95% is competitive among actively managed funds, further supporting the value of long-term allocation.