THE OAKMARK SELECT FUND Report from Bill Nygren and Henry Berghoef, Portfolio Managers

THE VALUE OF A $10,000 INVESTMENT IN THE OAKMARK SELECT FUND FROM ITS INCEPTION (11/1/96) TO PRESENT (6/30/07) AS COMPARED TO THE STANDARD & POOR’S 500 INDEX5
		Average Annual Total Returns (as of 6/30/07)
	Total Return Last 3 Months*	1-year	5-year	10-year	Since Inception (11/1/96)
Oakmark Select Fund (Class I)	7.84%	17.87%	10.57%	15.16%	17.96%
S&P 500	6.28%	20.59%	10.71%	7.13%	9.12%
Lipper Multi-Cap Value Index8	6.17%	20.18%	12.81%	8.73%	10.25%
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.
Expense Ratio as of 9/30/06 was 0.99%.
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 oakmark.com.
* Not annualized

The Oakmark Select Fund had a very good quarter, increasing in value by 8%. That gain outpaced a strong S&P 500 which gained 6%. Subtracting our first quarter loss also brings Select’s year-to-date gain to 6%. Nine of our holdings achieved double-digit gains for the quarter compared to only one with a double-digit loss, Pulte Homes. The stagnation of housing prices has had a more negative effect on homebuilders’ current earnings than we had anticipated. Despite that, we believe that large homebuilders have significant and increasing competitive advantages over small builders, which keeps us confident in their long-term outlook. We added to our Pulte position last quarter.

Our best performers, Intel and Dell, were both up over 20%. Both companies appear to be exiting difficult periods which we had viewed as temporary. Both still sell beneath our business value estimates, which is why our technology weighting continues to be higher than it has historically been. As we said last quarter, our largest position, Washington Mutual, though rarely our largest mover, is often the largest positive or negative contributor to portfolio performance. That was the case in the negative direction in the first quarter. It was also the case in the second quarter, but this time it contributed in the positive direction. We continue to believe that Washington Mutual’s retail bank is very valuable and is growing more rapidly than its competitors are growing. The low valuation of a desirable business is what makes us believe that Washington Mutual continues to merit its heavy portfolio weighting.

During the quarter we sold our position in Gap Stores to make room for Home Depot. Home Depot announced the sale of their building supply business, which captured a couple billion dollars of profit and also allowed new management to focus 100% on their retail business. In the same press release, Home Depot also announced a massive acceleration of their share repurchase plan— intending to spend $22 billion to repurchase 30% of their share base. With debt available on such attractive terms and with Home Depot stock trading at only 12 times expected earnings, we applaud the aggressive repurchase.

Schedule of Investments—June 30, 2007 (Unaudited)