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 compares two international stock funds: one investing in large companies and one in small companies. Over the long term (10+ years), both delivered around 9% annual returns. But recently, they diverged: the small-cap fund gained 48.5% over the past year vs. 42% for the large-cap fund. In the last three months, as markets fell, the small-cap fund dropped only 1.8%, while the large-cap fund fell 5%. This suggests small-cap stocks may be more resilient during downturns. The small-cap fund also has higher fees (1.37% vs. 1.04%), but its recent outperformance may offset that. For everyday investors, this highlights how fund size and fees can affect returns.
The Oakmark report discusses the long-term performance of its International Fund and International Small Cap Fund as of September 30, 2021. The core view is that both funds have achieved solid long-term returns, but their recent performance has diverged. Key conclusions include: The Oakmark Internat
This section presents the long-term and recent performance of the Oakmark International Fund and the Oakmark International Small Cap Fund as of September 30, 2021. By comparing the returns of the two funds across different time horizons, the report reveals their long-term stability but recent divergence, and provides expense ratio information.
The author’s central argument is that both funds have delivered solid long-term returns, but their recent performance has diverged. A counterintuitive observation is that the small-cap fund significantly outperformed the large-cap fund over the past one year (48.51% vs. 41.96%) and the past three months (-1.82% vs. -5.02%), suggesting that the small-cap strategy has shown greater resilience amid recent market volatility.
The report supports its thesis with return data across multiple time horizons. All figures are taken directly from the original text.
| Time Horizon | Oakmark International Fund | Oakmark International Small Cap Fund |
|---|---|---|
| Since Inception | 9.28% (since September 30, 1992) | 9.33% (since November 1, 1995) |
| 10 Years | 9.02% | 9.31% |
| 5 Years | 8.27% | 9.77% |
| 1 Year | 41.96% | 48.51% |
| 3 Months | -5.02% | -1.82% |