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 the Oakmark International Fund's performance in early 2015. It lost 0.05% over the past year, but since 1992 it has averaged 10.58% annual returns. For regular investors, this means short-term losses aren't a reason to panic—sticking with the fund long-term has paid off. The report uses data from different time periods (like 5 and 10 years) to show that focusing on just one year can be misleading. It's worth reading because it reminds us not to overreact to temporary dips and to stay focused on long-term growth.
The average annualized total returns of the Oakmark International Fund (Investor Class) as of March 31, 2015, are as follows: 10.58% since inception on September 30, 1992, 8.44% over 10 years, 9.73% over 5 years, -0.05% over 1 year, and 6.51% over 3 months. The gross expense ratio (as of September 3
This section focuses on the long-term and short-term performance of the Oakmark International Fund (Investor Class) as of March 31, 2015. The report aims to demonstrate the fund's long-term return capability since its inception in 1992, while also revealing the impact of recent market volatility on short-term returns.
The author's core investment argument is that, despite the fund recording a negative return over the most recent one-year period (-0.05%), its long-term annualized return remains robust (10.58% since inception), emphasizing that short-term fluctuations should not overshadow long-term value creation. This judgment counters the market's excessive focus on short-term performance, advocating that investors should concentrate on long-term compound growth.
The report highlights the significant disparity between long-term and short-term performance through comparisons across multiple time horizons. All data is sourced directly from the original text, with no additions.
| Time Horizon | Average Annualized Total Return | Key Interpretation |
|---|---|---|
| Since Inception (09/30/1992) | 10.58% | Long-term compound growth is robust, reflecting the effectiveness of the fund's stock selection strategy |
| 10-Year | 8.44% | Medium-term returns are slightly below the long-term average but still outperform most peer funds |
| 5-Year | 9.73% | Recent 5-year performance exceeds the 10-year figure, indicating recent strategy adjustments or improved market conditions |
| 1-Year | -0.05% | Short-term loss, possibly dragged down by global market volatility or specific sectors |
| 3-Month | 6.51% | Strong recent rebound, suggesting that short-term negative factors are fading |
Additionally, the gross expense ratio is 0.95% (as of 09/30/2014), which is at a moderate level within the industry and has a limited erosion effect on long-term returns.
This section does not mention specific companies or assets, focusing solely on the fund's overall performance metrics. The fund itself is the subject of analysis, but no information on individual stocks or sector holdings is provided.
For investors, this data indicates that: Short-term negative returns should not serve as a basis for exit decisions. The long-term annualized return of over 10% (since inception) proves that staying invested and ignoring short-term volatility is key to achieving excess returns. Investors should focus on the fund's stable 5-year (9.73%) and 10-year (8.44%) performance, rather than the temporary 1-year loss. If the market environment has not fundamentally deteriorated, the current short-term pullback may present an opportunity to increase positions.