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A Swiss mining and commodity trading company was the largest contributor to the Fund’s quarterly performance, while a Sweden-based global fashion designer and retailer was the largest detractor.
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The Fund’s top contributor for the quarter was a Swiss mining and commodity trading company, while the largest detractor was a Mexican media company.
As value investors, our key task is to focus on the fundamental drivers of long-term cash flows and see through the haze generated by market pundits, who are overly influenced by geopolitical events such as referendums and other elections.
A Swiss mining and commodity trading company was the largest contributor to the Fund’s quarterly performance, while a U.K.-based commercial and retail bank was the largest detractor.
A U.K.-based international equipment rental company was the Fund’s top contributor this quarter, while a Swiss financial services group was the largest detractor to performance.
We continue to believe that strong investment performance requires discipline and patience, and that the opportunities are quite positive for long-term investment success.
The Fund’s top contributor was a Swiss mining and commodity trading company, while the largest detractor was a Swiss financial services company.
A China-based Internet search engine was the Fund’s top contributor this quarter, while an Italian fashion and luxury goods brand was the largest detractor to performance.
As they have little to do with company-specific intrinsic value, we think it is a mistake to react to all macro and geopolitical events when making investment decisions.
The Fund’s largest contributor was a French aerospace and defense company, while the largest detractor was one of the world’s largest mining and commodity trading companies.
A U.K. bank was the Fund’s top contributor this quarter, while a South Korean electronics company was the largest detractor to performance.
We seize opportunities at times like these to purchase quality businesses at lower prices. This is the essence of value investing.
An Italian bank was the Fund’s top contributor for the quarter, while a Swiss luxury goods company was the largest detractor.
A German vehicle manufacturer was the Fund’s top contributor this quarter, while a Japanese vehicle manufacturer was the Fund’s largest detractor.
We believe that the proposed changes in China should eventually be positive for the Chinese economy and the region.
A retail and commercial bank was the Fund’s top contributor this quarter, while the largest detractor was a manufacturer of agricultural and construction equipment.
The top contributor for the quarter was a Swiss luxury goods company, and a Swiss-based financial services company was the Fund’s largest detractor.
There seem to be some positive reforms in Japan worth commenting on.
An Italian retail and commercial bank was the largest contributor for the quarter, while the largest detractor was a Japanese automobile manufacturer.
The largest contributor for the year was Japan’s second-largest broker, and the largest detractor was a provider of explosives for the mining industry.
Despite the strong past performance of global equities, we believe there is still value in global equity markets.
Japan’s second-largest broker was the top contributor to the fund's performance over the past 12 months and the largest detractor was an Australian mining-services company.
One of the dominant retail banks in the U.K., was the top contributor to performance for the quarter and an Australian mining services company was the largest detractor.
During the lazy days of summer, one may contemplate investing from the perspective of a regatta.
Continued talk of economic reform from Japan’s new government has led to a weakening of the yen and a market rally, while Italy’s election results call into question whether it will continue on the austerity path.
The enduring lesson of 2012:
Macro shocks create market opportunities for patient investors.
David offers his thoughts on why the Oakmark International Fund has been so successful over its 20 years of existence
Volatility - tough to stomach, but good for your financial health! The second quarter was dominated by volatility brought on by macro fears largely surrounding Europe and the eurozone economic situation, but slower growth in the U.S. and the emerging markets also weighed in on people’s fears. For a change, events in Japan received almost no attention!
While both the Oakmark International and International Small Cap Funds had acceptable investment performance in the fourth quarter of 2011, the full year was not good for global equities or for our two Funds, as natural disasters (first in Japan, later in Thailand) and Europe’s sovereign debt crisis took their toll. The short-term challenges cannot be denied, but I remain extremely confident about the medium and long-term future.
As I write to you, volatility and uncertainty in the market are drawing comparisons to what occurred in 2008-2009. Many pundits and observers are tripping over themselves to come up with the most fearful scenario. With this negative noise level steadily rising, it is understandable the global stocks, including some held in our Funds, are experiencing a period of weakness. Over the last three months alone, international stocks are down almost 20%, and for the year they are down by almost 10%. The U.S. equity market, down less than 9% year to date, is actually one of the better-performing markets.
During the quarter the market experienced continued instability, despite falling energy prices and Japan slowly beginning to recover from the March earthquake and tsunami disasters. These were two of the three major areas of concern that existed at the beginning of the quarter. Of course, the dominant factor still plaguing global financial markets is the situation in Greece.
The new year brought a degree of optimism as a result of strong economic growth in the emerging markets, as well as recovery in the developed world.
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Date of first use: January 24, 2013.