THE OAKMARK SELECT FUND Semi-Annual Report

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK SELECT FUND FROM ITS INCEPTION (11/1/96) TO PRESENT (3/31/04) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX⁵

	Average Annual Total Returns
	(as of 03/31/04)
	Total Return Last 3 Months*	1-year	5-year	Since Inception (11/1/96)

Oakmark Select Fund (Class I)	2.45%	32.83%	13.66%	21.81%
S&P 500	1.69%	35.12%	-1.20%	8.14%
S&P MidCap 400⁸	5.06%	49.10%	11.74%	14.43%
Lipper Mid Cap Value Index⁹	5.60%	53.35%	11.50%	10.63%

The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The performance data quoted represents past performance. Past performance does not guarantee future results.
The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Average annual total return measures annualized change, while total return measures aggregate change. To obtain current month end performance data, call 1-800-OAKMARK or visit www.oakmark.com.
* Not annualized

The Oakmark Select Fund increased in value by 2% in the quarter, slightly exceeding the S&P 500. The Fund's performance was positively affected by Washington Mutual's 7% return. As the fund's largest holding, Washington Mutual's performance frequently is the largest contributor to NAV¹⁰changes. Our holding that increased the most in the quarter was Toys ‘R' Us. We first bought Toys ‘R' Us in early 2000 believing that new management would succeed at improving the profitability of their toy stores. Although the shopping experience today is much better, the profits aren't. Fortunately, continued growth at Babies ‘R' Us and growing real estate value underneath the toy stores has allowed the stock to increase despite disappointing progress on our primary thesis. This outcome highlights the value of our investment approach. By investing only when we believe stocks are selling at large discounts to value, we have benefited from a cushion that Benjamin Graham, the "father of value investing," referred to as a "margin of safety." While the company's earnings have fallen far short of our projections, the stock has increased in price, and we still believe it is selling at a discount to business value. We are pleased with the steps management is now considering which include a downsizing of the toy division.

During the quarter we sold our position in Starwood Hotels. We purchased Starwood a year ago when the Iraq war caused a cutback in travel plans. The stock, which then troughed at $22, exceeded $40 last quarter. We still like the business but believe the current quote approximates full business value. Starwood was replaced in the portfolio with The Gap. We believe Gap is one of the strongest global apparel names, and we are very pleased with the new management, led by CEO Paul Pressler. We think that the stores look better, which is confirmed by higher same-store-sales. Our confidence is growing that Gap's turnaround will be successful, so despite the higher price, we believe the stock is very attractive.

Name	Shares Held	Market Value

Common Stocks—93.9%
Other Consumer Goods & Services—11.2%
H&R Block, Inc. (b)	8,259,800	$421,497,594
Mattel, Inc.	12,270,900	226,275,396

		647,772,990
Cable Systems & Satellite TV—4.4%
Time Warner Inc. (a)	15,240,000	$256,946,400
Information Services—7.4%
Moody's Corporation	3,123,600	$221,150,880
The Dun & Bradstreet Corporation (a)(b)	3,934,900	210,517,150

		431,668,030
Publishing—3.3%
Knight-Ridder, Inc.	2,606,500	$190,926,125
Restaurants—6.0%
Yum! Brands, Inc (a)	9,207,000	$349,773,930
Retail—14.0%
Toys ‘R' Us, Inc. (a)(b)	12,622,700	$212,061,360
Office Depot, Inc. (a)	11,084,900	208,617,818
The Gap, Inc.	9,400,000	206,048,000
The Kroger Co. (a)	11,035,700	183,634,048

		810,361,226
Bank & Thrifts—17.0%
Washington Mutual, Inc.	23,151,400	$988,796,294
Investment Management—2.6%
Janus Capital Group, Inc.	9,169,600	$150,198,048
Health Care Services—3.3%
IMS Health Incorporated	8,303,441	$193,138,038
Pharmaceuticals—6.4%
Chiron Corporation (a)	4,641,100	$204,254,811
Bristol-Myers Squibb Company	6,990,200	169,372,546

		373,627,357
Telecommunications—3.8%
Sprint Corporation	11,999,600	$221,152,628
Computer Services—5.7%
First Data Corporation	7,815,400	$329,497,264
Office Equipment—4.0%
Xerox Corporation (a)	15,854,700	$231,002,979
Oil & Natural Gas—4.8%
Burlington Resources, Inc. (b)	4,326,800	$275,314,284
Total Common Stocks (Cost: $3,584,332,713)		5,450,175,593
	Par Value

Short Term Investments—5.9%
U.S. Government Bills—3.8%
United States Treasury Bills, 0.865% - 0.895% due 4/1/2004 - 5/20/2004	$220,000,000	$219,854,010
Total U.S. Government Bills (Cost: $219,861,555)		219,854,010
Repurchase Agreements—2.1%
IBT Repurchase Agreement, 0.91% dated 3/31/2004 due 4/1/2004, repurchase price $119,003,008 collateralized by U.S. Government Agency Securities with an aggregate market value plus accrued interest of $124,950,000	$119,000,000	$119,000,000
IBT Repurchase Agreement, 0.76% dated 3/31/2004 due 4/1/2004, repurchase price $3,687,463 collateralized by a U.S. Government Agency Security with a market value plus accrued interest of $3,871,754	3,687,385	3,687,385

Total Repurchase Agreements (Cost: $122,687,385)		122,687,385
Total Short Term Investments (Cost: $342,548,940)		342,541,395
Total Investments (Cost $3,926,881,653)—99.8%		$5,792,716,988
Other Assets In Excess Of Other Liabilities—0.2%		12,113,583

Total Net Assets—100%		$5,804,830,571


William C. Nygren, CFA Portfolio Manager bnygren@oakmark.com	Henry R. Berghoef, CFA Portfolio Manager berghoef@oakmark.com

(a)	Non-income producing security.
(b)	See footnote number five in the Notes to Financial Statements regarding transactions in securities of affiliated issuers.

THE OAKMARK SELECT FUND

Report from Bill Nygrenand Henry Berghoef, Portfolio Managers

Report from Bill Nygren
and Henry Berghoef, Portfolio Managers