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 in the third quarter of 2018. It lost 6.33% over the past year, but since its launch in 1992, it has averaged a 9.71% annual return. For regular investors, the takeaway is not to panic over short-term losses—sticking with a long-term strategy can pay off. The fund's low fees (0.95% net expense ratio) are a plus. Worth a read because it shows that market ups and downs are normal; focus on the big picture.
The performance data for the Oakmark International Fund (Investor Class) as of September 30, 2018, shows an annualized return of 9.71% since its inception in September 1992, 9.10% over the 10-year period, and 4.03% over the 5-year period. However, it posted a loss of 6.33% over the past year and a d
This section focuses on the short-term and long-term performance of the Oakmark International Fund (Investor Class) as of September 30, 2018. The report aims to present to investors the fund's returns amid recent market volatility and to emphasize the historical effectiveness of its long-term value investing strategy.
The report's central argument is that, despite the fund's losses over the past year (-6.33%) and the past three months (-0.91%), its long-term returns remain robust (annualized 9.71% since inception in September 1992, and 9.10% annualized over the 10-year period). The author believes that short-term drawdowns should not overshadow its strong long-term performance, and investors should adhere to a long-term holding strategy.
The report supports its viewpoint by comparing return data across different time horizons, with specific figures as follows:
| Time Period | Average Annual Total Return |
|---|---|
| Since Inception (September 1992) | 9.71% |
| 10-Year | 9.10% |
| 5-Year | 4.03% |
| 1-Year | -6.33% |
| 3-Month | -0.91% |
Additionally, expense ratio data indicates the fund has relatively low costs:
This section only analyzes the Oakmark International Fund (Investor Class) itself and does not mention specific portfolio holdings or assets. The fund serves as the investment vehicle, and the report adopts a neutral-to-positive stance, emphasizing its long-term value.
For investors, the implication is that they should not panic and redeem due to short-term market fluctuations (e.g., a 1-year loss of 6.33%), but instead focus on the fund's annualized return of 9.71% over nearly 26 years since inception. The low expense ratio (net expense ratio of 0.95%) is also an advantage for long-term holding. The report advises investors to remain patient in volatile markets and adhere to a long-term value investing strategy.