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 (12/31/07) AS COMPARED TO THE STANDARD & POOR'S 500 INDEX6 (UNAUDITED)
	Average Annual Total Returns (as of 12/31/07)
(Unaudited)	Total Return Last 3 Months*	1-year	5-year	10-year	Since Inception (11/1/96)
Oakmark Select Fund (Class I)	-12.92%	-14.04%	7.70%	10.35%	14.95%
S&P 500	-3.33%	5.49%	12.83%	5.91%	8.56%
Lipper Multi-Cap Value Index9	-5.73%	-1.04%	13.45%	6.85%	9.00%
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 declined in value by 13% in the quarter, significantly more than the decrease in the S&P 500. By far the biggest contributor to that loss was the decline in Washington Mutual. Last month we e-mailed a special letter discussing the Fund’s performance, and specifically our decision to continue holding Washington Mutual. That letter is available on the Oakmark.com website. Had we not owned Washington Mutual, the Fund would still have shown a loss for the quarter. Other important contributors to that loss were Sprint Nextel, IMS International and Pulte Homes. With a large loss in Pulte, we decided to take our tax-loss and revisit the position at a later date. We also sold Sprint, believing that money could be put to better use in Comcast. Our rationale for buying Comcast is given in The Oakmark Fund letter, but in short, we sold what we believe is a weaker business to purchase a leading company whose stock had behaved just as poorly, and also captured our tax-loss. IMS International reported slower growth than the market was expecting and gave back a portion of the gain we had achieved in that holding. We believe that IMS will soon return to a more normal growth level, and therefore believe the stock warrants continued inclusion in the portfolio.

Despite the decline in value, there were bright spots. Four stocks posted double-digit gains. YUM Brands and McDonalds, two of the prior quarter’s best performers, were our most positive contributors. We continue to hold both stocks but have trimmed our positions to make room for larger weightings of stocks we believe have become more attractively priced. Western Union posted improved results after passing the anniversary of restrictions that the state of Arizona had imposed on their U.S.–to-Mexico money transfers. Viacom continued to show good results in their cable networks led by Nickelodeon, the most watched channel on cable.

The decline in Washington Mutual dropped it from our largest to second largest holding. The reason we did not restore Washington Mutual to its prior weighting was that our assessment of its company-specific risk has increased. We are not shying away from controversial holdings. As a value investor, most of what we own is controversial. Oakmark Select has owned numerous holdings that at times had very large portfolio weightings. Though not all have worked as we anticipated, we believe these holdings have been beneficial to the Fund. When we again identify specific stocks that we believe have unusually favorable risk-reward profiles compared to the rest of our holdings, we will not hesitate to take large positions.

December 31, 2007

Schedule of Investments—December 31, 2007 (Unaudited)