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 (9/30/07) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX3 (UNAUDITED)
	Average Annual Total Returns (as of 9/30/07)
(Unaudited)	Total Return Last 3 Months*	1-year	5-year	10-year	Since Inception (11/1/96)
Oakmark Select Fund (Class I)	-6.48%	7.00%	12.86%	12.78%	16.79%
S&P 500	2.03%	16.44%	15.45%	6.57%	9.10%
Lipper Multi-Cap Value Index6	-1.93%	12.72%	16.62%	7.49%	9.81%
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 9/30/07 was 0.97%. 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 difficult end to its fiscal year, with fourth quarter losses reducing our one-year return to only 7%. The Fund's best performer for the year, Discovery Holdings, doubled. Good programming, large increases in viewers, and closure of a money-losing division combined to dramatically boost reported earnings. Our fast-food companies, YUM Brands and McDonalds, also posted good earnings gains and very good stock price performance. On the flip side, our stocks with housing or retail exposure—Pulte Homes (new home construction), Home Depot (building supply retailing), Washington Mutual (home mortgages), and Limited Brands (Victoria's Secret)—each experienced losses of over 10% which detracted from performance.

As we said in our mid-quarter letter, last quarter had very disappointing performance. The Fund lost 6% of its value, and that happened despite the S&P 500's slight increase. We believe three general themes explain that weakness. First, industrial and commodity-based businesses performed well, and we don't own any of them. Second, the weak dollar substantially increased the value of non-U.S. earnings. By most estimates, about 40% of the business of S&P 500 companies is generated outside the U.S. However, most of our holdings—with the exception of strong international operators like McDonald's, YUM and IMS—derive the overwhelming majority of their profit domestically. Finally, performance was weak in consumer companies, including retail financials, and we are heavily invested in those areas. One of the reasons investing is so challenging is that there is a strong temptation to sell what has hurt you and to buy what you should have owned. More often than not, that is a mistake. As we look forward, we believe that U.S. consumer financials and retail stocks are among the few sectors that appear to be priced as if a recession is probable. We don't have an opinion as to whether or not a recession is imminent, but if it is, we can't believe it will be confined to consumer businesses. We also believe that abundant financial speculation is present across commodity markets including energy, and we believe that has pushed prices well beyond long-term market clearing levels. Finally, we think the decline in the dollar has created a purchasing power gap that makes further declines less likely—just ask anyone who has recently traveled to Europe what prices there are like!

Last quarter was an extremely frustrating one for us because we believe the stocks we own performed much worse than did the businesses they represent. We believe our portfolio has become more attractive and is properly positioned to capitalize on today's undervalued opportunities. We appreciate your patience as we wait for our stocks to reflect that value.

Schedule of Investments—September 30, 2007