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 shows the performance of the Oakmark International Fund from its 1992 launch to mid-2016. While its long-term annual return is a solid 9.02%, the fund lost 18.25% in the past year and 7.77% in the last three months. For regular investors, this means you can make money over time, but you must tolerate big short-term losses. The fund's 0.95% fee is reasonable. It's worth reading because it reminds us not to panic during downturns and to stay invested for the long haul.
The Oakmark International Fund (Investor Class) report as of June 30, 2016 shows an annualized return of 9.02% since its inception on September 30, 1992, but recent performance has been under pressure: a 10-year return of 3.68%, a 5-year return of 2.29%, a 1-year return of -18.25%, and a 3-month ret
This section presents the performance data of the Oakmark International Fund (Investor Class) as of June 30, 2016, covering long-term returns since inception to recent short-term returns. The report aims to showcase the fund's investment outcomes across different time horizons and disclose its fee structure, providing a basis for investors to evaluate the fund's historical performance and costs.
Through the data, the author demonstrates that the fund has achieved significant annualized returns (9.02%) since its inception in 1992, but its recent performance (1-year return of -18.25%, 3-month return of -7.77%) has declined sharply, highlighting the contrast between long-term investment value and short-term market volatility. The counterintuitive point is that despite severe short-term losses, the long-term annualized return remains positive, suggesting that investors must tolerate short-term fluctuations to achieve long-term gains.
The following table compares returns across different time horizons:
| Time Horizon | Annualized Return |
|---|---|
| Since Inception (1992/09/30) | 9.02% |
| 10 Years | 3.68% |
| 5 Years | 2.29% |
| 1 Year | -18.25% |
| 3 Months | -7.77% |
This section does not mention specific companies or assets; it focuses solely on the fund's own performance data. The fund name "Oakmark International Fund" indicates its strategy of investing in international markets, but no portfolio details are disclosed.
Investors should recognize that the fund's long-term return (9.02%) significantly outperforms its recent performance, but short-term losses (1-year -18.25%) may trigger panic redemptions. The insight is to adhere to a long-term holding strategy, ignoring short-term fluctuations to leverage the power of compounding; meanwhile, the 0.95% expense ratio is reasonable among actively managed funds and will not materially drag down long-term returns. For investors with lower risk tolerance, it is necessary to assess whether they can withstand similar short-term drawdowns.