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 (3/31/06) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX⁴

	Average Annual Total Returns (as of 3/31/06)
	Total Return Last 3 Months*	1-year	5-year	Since Inception (11/1/96)

Oakmark Select Fund (Class I)	2.52%	7.36%	8.67%	18.58%
S&P 500	4.21%	11.73%	3.97%	8.38%
S&P MidCap 400¹⁰	7.63%	21.62%	12.75%	14.74%
Lipper Mid Cap Value Index¹¹	6.77%	16.38%	12.84%	11.48%

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. The above performance information for the Fund does not reflect the imposition of a 2% redemption fee on shares held for 90 days or less to deter market timers. If reflected, the fee would reduce the performance quoted. 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 most recent month-end performance data, visit www.oakmark.com.
* Not annualized

The Oakmark Select Fund increased by 3% during the quarter compared to 4% for the S&P 500, and it again achieved another new all-time high NAV8. Though returns relative to other funds have recently been disappointing, the plus sign that has preceded our returns has allowed us to continue compounding our shareholders’ capital. As we have often said, we consider avoiding significant losses to be the most important requirement for achieving long-term financial goals, and we believe our approach is well suited for that.

Our best performing stock in the quarter was Mattel, up 15%. Mattel had been one of our worst performers, but it responded well to early signs that the Bratz doll fad may be nearing an end. That would be very welcome news for Barbie! Our worst performer was H&R Block, whose tax preparation business lost market share to a competitor that offered customers earlier access to their refunds. We believe that Block will take steps to prevent that problem next year, and we continue to believe the stock is an attractive investment.

During the quarter, we completed our sale of Burlington Resources, which is being acquired by ConocoPhillips. We also finished selling Moody’s. Moody’s is a great business and was one of Select’s all-time best performing stocks. But at 35 times earnings, we are no longer confident it is a great value. We also sold Knight Ridder after it agreed to be acquired for $67.25 per share. We were pleased that the acquisition price, though not as high as past newspaper transactions, was a 30% premium to Knight Ridder’s price before its largest shareholders requested this action. We added three companies to the portfolio last quarter: Dell, Intel, and Pulte Homes. We believe Dell and Intel are great businesses that are selling at average prices. Pulte sells at less than seven times estimated 2006 earnings, and we believe the market is being too pessimistic about how far earnings will fall when housing price increases moderate.

Name	Shares Held	Market Value

Common Stocks—94.8%
Apparel Retail—7.4%
Limited Brands	9,580,981	$234,350,795
The Gap, Inc.	12,060,000	225,280,800

		459,631,595
Broadcasting & Cable TV—8.2%
Liberty Media Corporation, Class A (a)	31,000,000	$254,510,000
Discovery Holding Company, Class A (a)	11,224,300	168,364,500
CBS Corporation, Class B	3,675,000	88,126,500

		511,001,000
Homebuilding—3.4%
Pulte Homes, Inc.	5,500,000	$211,310,000

Leisure Products—2.8%
Mattel, Inc.	9,670,900	$175,333,417

Movies & Entertainment—6.7%
Time Warner, Inc.	16,240,000	$272,669,600
Viacom, Inc., Class B (a)	3,675,000	142,590,000

		415,259,600
Restaurants—11.8%
Yum! Brands, Inc.	9,207,000	$449,854,020
McDonald's Corporation	8,300,000	285,188,000

		735,042,020
Specialized Consumer Services—5.8%
H&R Block, Inc. (b)	16,519,600	$357,649,340

Other Diversified Financial Services—4.5%
JP Morgan Chase & Co.	6,750,000	$281,070,000

Thrifts & Mortgage Finance—15.3%
Washington Mutual, Inc.	22,217,400	$946,905,588

Health Care Services—3.4%
IMS Health Incorporated	8,303,441	$213,979,675

Pharmaceuticals—4.4%
Bristol-Myers Squibb Company	10,990,200	$270,468,822

Diversified Commercial and Professional Services—4.9%
The Dun & Bradstreet Corporation (a)(b)	3,934,900	$301,728,132

Computer Hardware—3.4%
Dell Inc. (a)	7,000,000	$208,320,000

Data Processing & Outsourced Services—5.9%
First Data Corporation	7,815,400	$365,917,028

Name	Shares Held/ Par Value	Market Value

Office Electronics—4.1%
Xerox Corporation (a)	16,746,400	$254,545,280

Semiconductors—2.8%
Intel Corp.	9,000,000	$174,150,000
Total Common Stocks (Cost: $4,270,392,238)		5,882,311,497

Short Term Investments—5.0%
U.S. Government Bills—2.4%
United States Treasury Bills, 4.385% - 4.43% due 4/6/2006 - 4/20/2006	$150,000,000	$149,779,396
Total U.S. Government Bills (Cost: $149,779,396)		149,779,396
Repurchase Agreements—2.6%
IBT Repurchase Agreement, 4.55% dated 3/31/2006 due 4/3/2006, repurchase price $155,058,771 collateralized by a Government National Mortgage Association Bond with a rate of 5.375%, with a maturity date of 7/20/2034, and with a market value plus accrued interest of $27,299,914, and by Small Business Administration Bonds, with rates of 6.125% - 7.740%, with maturities from 6/25/2019 - 11/25/2030, and with an aggregate market value plus accrued interest of $135,450,086	$155,000,000	$155,000,000

IBT Repurchase Agreement, 3.25% dated 3/31/2006 due 4/3/2006, repurchase price $1,822,337, collateralized by a Small Business Administration Bond, with a rate of 6.625%, with a maturity date of 4/25/2024, and with a market value plus accrued interest of $1,912,936	1,821,844	1,821,844

Total Repurchase Agreements (Cost: $156,821,844)		156,821,844
Total Short Term Investments (Cost: $306,601,240)		306,601,240
Total Investments (Cost $4,576,993,478)—99.8%		$6,188,912,737
Other Assets In Excess Of Other Liabilities—0.2%		13,594,619

Total Net Assets—100%		$6,202,507,356


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 the Financial Statements regarding investments in affiliated issuers.

THE OAKMARK SELECT FUND

Report from Bill Nygren and Henry Berghoef, Portfolio Managers