Advisors | Press Room | Open an Account | Site Overview | Contact Us | Search
   

About Us

Overview | Philosophy & Process | Why Oakmark? | Owning Value | Value & Your Portfolio | Harris AssociatesProxy Voting Policy

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. One of the key components of the Oakmark investment process is to invest in companies where managements’ interests are closely aligned with shareholders’. We believe that this alignment is most frequently and effectively created by significant management stock ownership. When management has a meaningful sum invested alongside other shareholders, the focus on performance and shareholder value is intensified. Mutual fund investors can also wisely apply this same philosophy. Significant ownership of Fund shares -- not just by portfolio managers, but also by all levels of employees at the Fund and its adviser (including analysts, senior management, trustees and others) -- reinforces a higher standard of integrity, focus, and commitment. As of December 31, 2009, the employees of the Funds' adviser, Harris Associates L.P., the Funds' officers and trustees and their families have over $220 million invested in The Oakmark Funds. Although the difficult markets of the last 18 months may have raised doubts among many of our investors about staying the investment course, you can be assured that we have maintained a high level of Fund ownership throughout this period, remaining constant in our financial commitment and discipline. We hope that our continuing financial commitment also signals to shareholders our strong belief that the Funds remain attractive investments for the future.

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

The discussion of the investment strategy of The Oakmark Funds represents the views of the portfolio managers and Harris Associates L.P. at the time of this material and are subject to change without notice.

  User ID

Password
 
 About Security
 
Forgot ID/Password?
 
   More Options          New User
 
  Email Address
 
Unsubscribe    Change Email
Interested in opening an account with the Oakmark Funds? Take a look at Investing with Us.

 

 SEARCH
 

  Home | Account Login | Performance | Literature | Help | Contact Us | Search

 

Privacy Policy and Terms of Use for using this site.


Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.


For more information on The Oakmark Funds, including a prospectus which explains management fees and expenses and the special risks of investing in the Funds, please call 1-800-OAKMARK. Click here to view the prospectus on-line. Please read it carefully before investing. An investor should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. This and other information about the Funds are contained in the Funds' prospectus.

OAKMARK, OAKMARK FUNDS, OAKMARK INTERNATIONAL, and OAKMARK and tree design are trademarks owned or registered by Harris Associates L.P. in the U.S. and/or other countries.

Copyright 2010, Harris Associates Securities L.P., Distributor, Member FINRA.