Chad Clark, co-portfolio manager of the Oakmark International Small Cap Fund, has stepped down as co-manager of the Fund and and is leaving Harris Associates today. David Herro, founding portfolio manager of the Fund, will remain portfolio manager. Other members of Harris Associates’ International investment team will assume Chad’s research responsibilities.
“It has been a great experience working with Chad throughout the years. He has been a valued contributor to our success and will be missed,” says David Herro, Portfolio Manager and Chief Investment Officer of International Equities. “We continue to see great opportunities in today’s markets and are fortunate to have a strong, deep and talented investment team dedicated to meeting the high expectations of our investors.”
The Oakmark International Small Cap Fund’s investment philosophy is centered in the belief that superior, long-term results are achieved through investing as owners in quality companies that can be purchased at a significant discount to their true economic value. The Oakmark International Small Cap Fund seeks capital appreciation by investing in small capitalization companies located outside of the U.S.
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About the Portfolio Managers
David Herro is Portfolio Manager of Oakmark International, Oakmark International Small Cap, and Oakmark Global Select. He is also Harris Associates’ Chief Investment Officer of International Equities. David has been managing international portfolios since 1986, previously serving as portfolio manager for The State of Wisconsin Investment Board and The Principal Financial Group. David, who joined Harris Associates in 1992, has an M.A. in Economics from the University of Wisconsin-Milwaukee (1985) and a B.S. in Business/Economics from the University of Wisconsin-Platteville (1983). He has over twenty-three years of investment experience and is a CFA charterholder.
About Harris Associates L.P.
Harris Associates, adviser to The Oakmark Funds, was founded in 1976 by experienced investment professionals to provide investment advice to wealthy individuals and institutions. Harris Associates’ investing philosophy is employed through a disciplined adherence to a value approach and is based on three tenets: to buy companies trading at a significant discount to estimated intrinsic business value, invest with companies that consistently grow value over time, and invest with shareholder-oriented management teams. The Oakmark Funds were introduced in August 1991 to bring the Harris Associates’ value philosophy to a direct mutual fund investment vehicle. As of 3/31/09, Harris Associates’ total assets under management were over $34 Billion.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
Investing in foreign securities presents risks that in some way may be greater than U.S. investments. Those risks include: currency fluctuation; different regulation, accounting standards, trading practices and levels of available information; generally higher transaction costs; and political risks.
The stocks of smaller companies often involve more risk than the stocks of larger companies. Stocks of small companies tend to be more volatile and have a smaller public market than stocks of larger companies. Small companies may have a shorter history of operations than larger companies, may not have as great an ability to raise additional capital and may have a less diversified product line, making them more susceptible to market pressure.
