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 is a performance update for the Oakmark International Fund as of mid-2015. Since its 1992 launch, it has delivered strong long-term returns (over 10% annualized), but recently it lost 2.53% over one year and 1.13% over three months. For everyday investors, the takeaway is simple: don't panic over short-term losses. The fund has low fees (0.95%) and a proven long-term strategy (value investing—buying undervalued companies). Short-term ups and downs are normal; sticking with it is likely smarter than cashing out.
The average annualized total return of the Oakmark International Fund (Investor Class) as of June 30, 2015, shows: 10.41% since inception on September 30, 1992, 8.33% over 10 years, 12.00% over 5 years, but -2.53% over 1 year, and -1.13% over the 3-month period. The report's core argument states tha
This section presents the performance data of the Oakmark International Fund (Investor Class) as of June 30, 2015, covering long-term and short-term returns and disclosing the expense ratio. The core context is that the fund has demonstrated steady long-term performance since its inception in 1992, but recent negative returns (1-year and 3-month) reflect the impact of short-term market volatility on the value investing strategy.
The author argues that the fund's long-term performance (annualized 10.41% since inception, 8.33% over 10 years, and 12.00% over 5 years) validates the effectiveness of its value investing strategy, while the recent negative returns of -2.53% over 1 year and -1.13% over 3 months are normal manifestations of short-term market fluctuations and should not alter investor confidence in the long-term strategy. The counterintuitive judgment is that short-term losses do not negate long-term value, and investors should ignore recent noise.
| Time Period | Annualized Total Return |
|---|---|
| Since Inception (1992/09/30) | 10.41% |
| 10-Year | 8.33% |
| 5-Year | 12.00% |
| 1-Year | -2.53% |
| 3-Month | -1.13% |
This section does not mention specific companies or assets, focusing solely on the fund's performance data. Fund name: Oakmark International Fund (Investor Class).
Investors should adhere to long-term holding and ignore short-term (1-year and under) negative returns, as the fund's historical data (10-year 8.33%, 5-year 12.00%) indicates that the value investing strategy can generate significant excess returns over the long term. The low expense ratio (0.95%) further enhances the long-term compounding effect. It is recommended to maintain positions during the current short-term decline rather than redeem.