HARRIS | OAKMARK

Portfolio managers like Clyde McGregor and Anthony Coniaris lead day-to-day stock selection for the Oakmark funds. The investment team operates with a collegiate, research-driven approach, with each manager having significant personal capital invested alongside fund shareholders. The firm has maintained a remarkably stable team over decades, with McGregor involved since 1981.

The firm defines value as buying companies at a substantial discount to their estimated intrinsic value, typically targeting at least a 40% discount. The team emphasizes meeting management, analyzing competitive moats, and forecasting normalized earnings over a multi-year horizon. Unlike some value investors, Harris is willing to hold positions like Alphabet when the team believes the market undervalues durable growth.

Harris Associates is the registered investment adviser that manages the Oakmark family of mutual funds. The Oakmark brand was launched in 1991 and represents the firm's primary public-market product suite. The institutional structure ties fund governance and portfolio management directly back to the partnership and employees of Harris Associates.

The portfolios typically hold 40 to 60 names, with the top ten holdings accounting for a meaningful share of assets. Active share relative to the S&P 500 or MSCI EAFE indexes can be very high given the conviction-weighted construction. The firm will also hold meaningful cash positions when bargains are scarce, prioritizing capital preservation over staying fully invested.

The Oakmark International Fund is a core offering, applying the same bottom-up value process to developed markets outside the United States. Historically, the team has found significant opportunities in European financials and industrials. The strategy has occasionally faced headwinds when growth-oriented markets rotate away from the types of cyclicals and financials the team favors.