We know the mutual fund marketplace may seem overwhelming and over-crowded. And choosing a mutual fund manager goes beyond the investment style alone. Here are some important factors that we believe distinguish The Oakmark Funds:

Consistent investment process: Each portfolio manager at Oakmark applies a consistent investment philosophy and process to building and managing the Funds. We employ in-house research to identify companies we believe are currently trading at a substantial discount to what we consider to be their underlying business value -- what a rational businessperson would pay to own the entire business.

Do not over-diversify: Holding a smaller number of stocks in the portfolio (15-60 stocks, for example, rather than 100-150) is important to our investment philosophy. By building focused portfolios, our managers' best ideas can have a meaningful impact on investment performance. Because a fund that employs a focused approach concentrates its assets in fewer individual securities, its share price may fluctuate more than that of a comparable diversified fund.

While all of The Oakmark Funds typically hold less than 60 securities, The Oakmark Select and The Oakmark Global Select Funds are designed to be our most concentrated funds, usually holding approximately 20 securities.

Personal investment in the Funds: We look for management ownership in the companies in which we invest, as we believe that stock ownership correctly aligns the interests of management with shareholders. We suggest that when investors look at mutual funds, they should also look for significant management ownership. When the management team has a meaningful sum invested side-by-side with other shareholders, you should expect a higher standard of focus and commitment.

At Oakmark, such a commitment is an integral part of our business philosophy. Through the difficult market conditions of the last year, we have maintained a high level of employee Fund ownership. As of December 31, 2008, the value of the shares of The Oakmark Funds owned by the employees of the Funds’ adviser, Harris Associates L.P., the Funds’ officers, its trustees, and their families exceeded $157 million. Though the market decline caused the value of our holdings to fall from the end of 2007, you can be reassured that as a group, the Funds’ portfolio managers added to their positions. We clearly bear both the upside and downside of the Funds’ investment results along with our shareholders. Finally, for those particularly interested in portfolio manager holdings, you should know that every Fund manager still owns at least $1 million worth of each Fund that he manages.

Value is all that we do: At Oakmark, value isn't just a style of investing; it's the only way of investing. All of our Funds employ the same value investment philosophy and process because we believe that it is the best way, over a long time period, to maximize profit potential while reducing risk. Our style of investing is not necessarily complex but does require conviction and discipline, coupled with a long investment horizon.

Next: Owning Value