Click Here for Secure Login
Sign Up For Email Updates
Follow Us On Twitter
We continue to believe that the underlying businesses in our portfolio are performing much better than their stock prices indicate, so we find these holdings even more attractively valued than they were prior to the fourth quarter.
Read More >
While the Fund has outperformed the market over longer periods of time, we are not surprised to see shorter periods of underperformance along the way.
We believe equities remain the most attractive asset class, and due to the increased number of undervalued companies with misunderstood intangible assets, our research team has produced an impressive number of new investment ideas.
While we remain focused on long-term business fundamentals as we evaluate potential investments, we don’t mind taking advantage of higher volatility to increase exposure to high-quality businesses at more attractive prices.
The strong fourth-quarter performance capped off a strong calendar year for the Fund, and we are pleased to report that the Fund hit another all-time high adjusted NAV for the sixth quarter in a row.
As value investors, we patiently wait for the gap between a company’s stock price and our estimate of intrinsic value to close, and over the past 12 months, the gaps have narrowed.
We are pleased to report that this was the fourth quarter in a row in which the Oakmark Fund hit an all-time high adjusted NAV.
During the quarter, we added three new positions to the portfolio.
We are very pleased that recent performance showed a substantial reversal from the results reported to you a year ago following the fourth quarter of 2015.
This quarter marks the 25th anniversary of the Oakmark Fund, and we are proud of our long-term results and pleased to mark the occasion with an all-time high adjusted NAV at quarter end.
At Oakmark, we evaluate businesses by summing the present value of their future cash flows, which we believe will only be minimally affected by U.K.’s recent vote to leave the EU.
We remain focused on assessing the long-term underlying value of businesses, which we believe are much less volatile than stock prices.
As portfolio managers and large shareholders of the Fund, we’re not satisfied with losses, but we remain confident in our time-tested philosophy, investment process and research team.
We remain confident that our focus on business value and our extended investment time horizon will position the Fund for favorable results over longer periods of time.
We continue to feel that financial securities are among the most attractive segments in the market.
We feel the financials and energy sectors remain undervalued, and the Oakmark Fund added to several positions in these sectors during the quarter.
As we have written in the past, we believe the financial and information technology sectors are among the most attractive, and investments in these areas represent over half of the Fund’s equity holdings.
The information technology and financial services sectors are still among the most attractive sectors of the market.
Our great team of research analysts continues to find attractively valued companies to add to the portfolio. Over the past two quarters, we have added seven new companies to the Fund.
Stocks certainly aren’t as cheap as they were a year ago, but we are still finding attractive companies to add to the portfolio.
Our portfolio has been heavily invested in financial services, economically sensitive industrials and information technology.
We still found the financials and information technology sectors to be attractively valued for the quarter just ended.
Our portfolio has been heavily invested in financial services, technology and economically sensitive stocks. Those sectors performed well in the quarter, and not surprisingly, our best performers were companies in those industries.
Despite strong market gains in the first quarter of 2013, we believe stocks remain moderately undervalued relative to their own history and extremely undervalued versus bonds.
For more historic commentaries, available in the Oakmark Quarterly Reports, click here.
This site is intended for residents of the U.S. only. The information on the website does not constitute an offer for products or services or a solicitation of an offer to any person outside of the United States who is prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence.
CUSIP identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standards and Poor’s Financial Services, LLC, and are not for use or dissemination in a manner that would serve as a substitute for any CUSIP service. The CUSIP Database, © 2011 American Bankers Association. “CUSIP” is a registered trademark of the American Bankers Association.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
Before investing in any Oakmark Fund, you should carefully consider the Fund's investment objectives, risks, management fees and other expenses. This and other important information is contained in a Fund's prospectus and summary prospectus. Please read the prospectus and summary prospectus carefully before investing. For more information, please call 1-800-OAKMARK (625-6275).
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 2019, Harris Associates Securities L.P., Distributor, Member FINRA.
Date of first use: January 24, 2013.