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 Oakmark Fund's performance in early 2022. It lost 2.63% in the last three months, but since 1991 it has averaged 12.94% annual returns, and over 1, 5, and 10 years it's been above 13%. For regular investors, this means short-term drops don't erase long-term gains. The fund's fee (0.91% net) is also below average, which helps your returns. Worth a read because it shows why you shouldn't panic over short-term market swings.
Oakmark Fund (Investor Class) report as of March 31, 2022 shows an average annual total return of 12.94% since inception on August 5, 1991, a 10-year return of 13.80%, a 5-year return of 13.73%, and a 1-year return of 13.12%, but a -2.63% return over the most recent 3 months. The fund's gross expens
This section focuses on the short-term and long-term performance of the Oakmark Fund (Investor Class) as of March 31, 2022, and discloses its fee structure. The market environment was characterized by volatility in early 2022, with the fund posting negative returns over the past three months, though long-term performance remained robust.
The report’s core investment argument is that, despite short-term (three-month) market volatility causing a decline in the fund’s net asset value (-2.63%), the fund’s long-term annualized returns since its inception in 1991 (12.94%) and over the past 10 years (13.80%), 5 years (13.73%), and 1 year (13.12%) all significantly exceed the short-term loss, indicating the sustainability of its strategy over the long term. The counterintuitive insight is that the short-term loss does not undermine its long-term cumulative return potential, and the expense ratio (net expense ratio of 0.91%) is below the industry average, benefiting investors.
| Time Horizon | Annualized Return | Notes |
|---|---|---|
| Since Inception (1991.08.05) | 12.94% | Long-term performance over 30+ years |
| 10 Years | 13.80% | Medium-term stability |
| 5 Years | 13.73% | Medium-term stability |
| 1 Year | 13.12% | Recent strength |
| 3 Months | -2.63% | Short-term volatility |
This section does not mention specific holdings or assets, focusing solely on the fund’s overall performance and fee data. The analysis targets the Oakmark Fund itself, with its strategy implied in the long-term returns.
For investors, the data suggests that short-term market corrections (e.g., -2.63%) should not be a reason to exit, as the fund’s long-term annualized return (12.94%) far exceeds the short-term loss, and the low expense ratio (net 0.91%) reduces holding costs. The report recommends that investors maintain or increase their positions in the fund to capitalize on its long-term compounding effect, with particular attention to the actual fee changes after the fee waiver agreement expires (January 27, 2023).