The Oakmark family of no-load mutual funds is an outgrowth of Harris Associates' value-focused approach to investing. The funds are available directly from Harris Associates and also through financial advisors and other intermediaries.
The Oakmark Fund invests in big businesses, both mid- and large-cap, seeking those that represent the most attractive values relative to their price. Bill Nygren and Kevin Grant manage the fund.
Oakmark Select Fund
Oakmark Select is a non-diversified fund that seeks long-term capital appreciation. The fund targets mid- and large-cap U.S. companies and it typically holds approximately 20 companies. Bill Nygren, Tony Coniaris and Win Murray manage the fund.
Oakmark Equity and Income Fund
Oakmark Equity and Income seeks current income, as well as preservation and long-term growth of capital. It invests in a diversified portfolio of equity and fixed-income securities. Clyde McGregor, Colin Hudson and Edward Wojciechowski manage the fund.
Oakmark Global Fund
Oakmark Global invests in a diversified portfolio of equity securities around the world. The fund targets small-, mid- and large-cap companies in pursuit of long-term capital growth. David Herro, Clyde McGregor, Tony Coniaris and Jason Long manage the fund.
Oakmark Global Select Fund
Oakmark Global Select invests in approximately 20 larger-cap companies from around the world. Half of the holdings in this non-diversified fund are typically U.S.-based and the other half are international companies. Bill Nygren, David Herro, Tony Coniaris and Eric Liu manage the fund.
Oakmark International Fund
Oakmark International seeks long-term capital growth by investing primarily in a diversified portfolio of mid- and large-cap companies outside the U.S. The fund may invest in emerging markets. David Herro and Michael Manelli manage the fund.
Oakmark International Small Cap Fund
Oakmark International Small Cap pursues long-term capital growth via a diversified portfolio of non-U.S. companies with market capitalization less than $5 billion at the time of investment. David Herro, Michael Manelli and Justin Hance manage the fund.
The Oakmark Equity and Income Fund invests in medium- and lower-quality debt securities that have higher yield potential but present greater investment and credit risk than higher-quality securities. These risks may result in greater share price volatility. An economic downturn could severely disrupt the market in medium or lower grade debt securities and adversely affect the value of outstanding bonds and the ability of the issuers to repay principal and interest.
Investing in foreign securities presents risks that in some ways may be greater than U.S. investments. Those risks include: currency fluctuation; different regulation, accounting standards, trading practices and levels of available information; generally higher transaction costs; and political risks.
Because The Oakmark Select and Oakmark Global Select Funds are non-diversified, the performance of each holding will have a greater impact on the Funds' total return, and may make the Funds' return's more volatile than a more diversified fund.
The stocks of smaller companies often involve more risk than the stocks of larger companies. Stocks of small companies tend to be more volatile and have a smaller public market than stocks of larger companies. Small companies may have a shorter history of operations than larger companies, may not have as great an ability to raise additional capital and may have a less diversified product line, making them more susceptible to market pressure.
Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.