- Harris | Oakmark was founded in 1976 with essentially the same value investing philosophy used today. The Fund has been running since 2001.
- The Fund’s portfolio managers have an average of 30 years of investment experience and 21 years with the firm* giving them lived-experience through multiple market cycles and the confidence to act with conviction in times of both crisis and opportunity.
Where skill meets precision - turn uncertainty into opportunity
Selling your investments when markets appear to be in crisis mode may feel like the right thing to do. However, decades’ worth of market data show that staying invested through volatile times is a better way to achieve your long-term financial goals1. Time in the market is far more important – and fruitful – than trying to time the market. While market volatility is stressful, for well-prepared investors, it can provide an excellent opportunity to pick up high-quality companies at bargain prices.
For Harris | Oakmark, the US stock market already looked attractive for value investors due to the dramatic spread in valuations between those handful of companies that drove the returns of the S&P 500 in 2023 and 2024, and everything else. This latest bout of market volatility has made the opportunity set even more compelling2.
The S&P 500 today sells at a P/E multiple which is nearly twice as high as the P/E level that we have in Harris Oakmark large cap strategies. That spread is unusually wide and we think tilts the odds in favor of the value investor. One of the nice things for a value investor today, because the S&P 500 has been so concentrated in large cap technology companies, the cheap stocks are spread out across most other industries so I think there’s an unusual opportunity to put together a very well diversified portfolio today in low P/E stocks across lots of industries.” Bill Nygren, CIO-US, Harris l Oakmark.
Reasons to invest
The Fund trades at a valuation significantly below that of the S&P 500*, but with comparable EPS growth and a higher free cash flow yield.
|
|
|
|
|
|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past performance is not necessarily indicative of future performance.
- The Investment Team do not rely on any single valuation method. Rather they use a unique in-house valuation methodology which combines a range of valuation techniques including valuing intangibles (unlike traditional GAAP accounting), to calculate a stock’s intrinsic value.
- This methodology can result in any stock qualifying as a value stock (including ‘fallen growth stocks’) as long as they are trading at a discount of at least 30% to their intrinsic value, growing, and run by management teams that act in the best interests of shareholders.
- The investment team is benchmark-agnostic, buying companies based on absolute value, not relative value, without regard to sectors or industries.
- This high-conviction approach creates a portfolio with high active share and 40-60 stocks, often providing diversification benefits for investors with existing passive and active equity exposure.
- The Fund has a longer than usual investment horizon of 3-5 years, as the team patiently waits for stocks’ share prices to rise and reflect their true intrinsic value.
The Fund is ranked in the 1st quartile for performance among its Morningstar Peer Group for 3, 5 years and since inception and 2nd quartile for 1 year**
|
|
|
|
|
|---|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: Morningstar, Harris Associates. Past performance is not a guarantee of its future results. The performance indicated is based on the NAV (net asset value) of the share class, and is net of all charges applying to the fund but does not account for sale commissions, taxation or paying agent fees, and assumes that dividends if any are reinvested. Taking such fees or commissions into account would lower the returns. The performance of other share classes would be higher or lower based on the differences between the fees and the entry charges..
***
^
?qlt=85&ts=1734476972802&dpr=off&fmt=webp-alpha&fit=constrain)
The portfolio management team
William C. Nygren, CFA
Partner, Portfolio Manager and Chief Investment Officer – U.S.
Harris | Oakmark
Michael A. Nicolas, CFA
Partner, Portfolio Manager, Investment Analyst
Harris | Oakmark
Robert F. Bierig
Partner, Portfolio Manager and U.S. Investment Analyst
Harris | Oakmark
The firm
Harris | Oakmark, an affiliate of Natixis Investment Managers
Found in 1976, with US$95 billion of assets under management, Harris | Oakmark manages US, global, and international equity strategies. The firm employs an intensive, fundamental in-house research process to identify companies trading at a significant discount to managers' estimates of intrinsic business value.
Source: Harris | Oakmark, as of 31/03/2025.
Natixis Investment Managers
Natixis Investment Managers’ multi-affiliate approach connects clients to the independent thinking and focused expertise of more than 15 active managers. Ranked among the world’s largest asset managers with more than US$1.3 trillion assets under management, Natixis Investment Managers delivers a diverse range of solutions across asset classes, styles, and vehicles, including innovative environmental, social, and governance (ESG) strategies and products dedicated to advancing sustainable finance. The firm partners with clients in order to understand their unique needs and provide insights and investment solutions tailored to their long-term goals.
Source: Natixis Investment Managers, as of 31/12/2024.
Fund flyer
Learn more about the fund and its investment philosophy.
Interested in finding out more?
Discuss with your financial advisor or connect with us.
Explore equity investing
See how our active approach can make all the difference.
Related insights
Equities
Market volatility is creating enticing opportunities for value investors
Market volatility is creating compelling opportunities to purchase high-quality companies at bargain prices.
Equities
Future of equities
The investment landscape from 2010 to 2020 was abnormal. What will the new normal look like for equities investors?
Equities
Value investing in the new economy
We believe U.S. economic shifts have fundamentally changed the nature of business value. Here’s why we still back value stocks.
1 Source: Three reasons to stay invested in volatile times https://www.im.natixis.com/en-intl/insights/portfolio-construction/2023/three-reasons-to-stay-invested-in-volatile-times
2 Source: Factset, Harris Associates, Price to Earnings ratios of S&P 500 from January 1, 2023 - March 31, 2025
* Source: Harris | Oakmark, as of March 31, 2025
** Source: Morningstar, Harris | Oakmark as of March 31, 2025. Past performance is not a guarantee of future results.
*** 2024 Asian Private Banker Asset Management Awards for Excellence were issued by Asian Private Banker, reflecting product performance, asset gathering, service quality and fund selector feedback as at 31 August 2023. For award’s details and methodology, please refer to https://asianprivatebanker.com/awards/asset-management-awards-for-excellence-2024/.
^ Any reference to a ranking, a rating or an award provides no guarantee for future performance results and is not constant over time. LSEG Lipper Fund Awards Singapore 2024 is based on the performance of the Harris Associates U.S. Value Equity Fund - R/A (USD) over 3 years as at 31 December 2023. For the award’s details and methodology, please refer to https://www.lipperfundawards.com/methodology. From LSEG Lipper Fund Awards © 2024 LSEG. All rights reserved. Used under license.
This webpage is provided by Natixis Investment Managers Singapore Limited (Company Registration No. 199801044D). The Fund has been recognized under the Securities and Futures Act 2001 of Singapore, and Natixis Investment Managers Singapore Limited is appointed as its Singapore Representative and agent for service of process. Past performance of the Fund or managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of investments and the income accruing, if any, may rise or fall and investors may lose the full amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of exchange fluctuations that may cause a loss of principal. Investments in the Fund involve risks, which are fully described in the Prospectus. The Fund may use derivatives for hedging and/or investment purposes. The net asset value of the Fund may be subject to volatility as a result of its investment policy and/or use of financial derivative instruments. Investors should consider the Fund’s investment objective, risks, charges, expenses and read the Prospectus and Product Highlights Sheet carefully and discuss with their financial adviser to determine if the investment is appropriate for them before investing. However, if an investor chooses not to seek advice from a financial adviser, he/she should consider whether the product is suitable for him/her. The Prospectus is available for collection from Natixis Investment Managers Singapore Limited at 5 Shenton Way, #22-05/06, UIC Building, Singapore 068808 or any appointed Singapore distributor.
This webpage is published for information and general circulation only and it does not constitute an offer to anyone or a solicitation by anyone to subscribe for shares of the Fund as it does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this webpage. Nothing in the webpage should be construed as advice or a recommendation to buy or sell shares. Natixis Investment Managers may decide to terminate its marketing arrangements for this fund in accordance with the relevant legislation. This webpage has not been reviewed by the Monetary Authority of Singapore.