Harris 30th Anniversary Video - History of the Fund

Three decades of providing clients an opportunity to invest in undervalued stocks in overseas markets is explored by David Herro.

David Herro, Partner, CIO-International Equities, Portfolio Manager, at Harris Associates, reflects on launching the Oakmark International Fund 30 years ago to give clients the opportunity to invest in overseas markets using the proven track record of the Harris value philosophy. He also walks through the many global crises his team has utilized to enhance returns throughout the years. Here are some highlights:
  • Crisis creates opportunity: International markets have always faced challenges of macro and geopolitical shocks. When the fund started in 1992, for example, there was a banking crisis occurring in Scandinavia. In 1994, there was a Latin American crisis and an Asian crisis from 1997-98. There was the Greek crisis followed by the Great Financial Crisis from 2008-2009. These things have happened consistently and are persistent.

    Macro events are exploitable because they move share prices more than they move underlying intrinsic value, which, as an investor, we can take advantage of.
  • Long-term investors: Our objective is to utilize these crises to enhance return. So, as we look back at the history of this fund, even though in the early stages of these crises we underperformed, we stayed committed to finding quality names at prices we believed were significantly undervalued – and took advantage of what the market provided us. We subsequently outperformed following every one of these crises. And that's exactly what I think a long-term investor should be doing, is taking advantage of short-term price displacement to earn medium and long-term returns.
  • High conviction: Having a high conviction, disciplined philosophy and process is important because we go through these cycles. And all too often, I have witnessed professional investors abandon their philosophy and process and sell during market downturns, right when they should be adding to portfolios.
  • Gratitude: First and foremost, we feel a strong sense of gratitude for our clients, business partners, and all the employees who’ve contributed to the success of our investment products. Without our clients and the trust they have bestowed upon us, we wouldn’t be in business. So, a big thank you everyone who has trusted us with their hard-earned savings.

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 visit oakmark.com or call 1-800-OAKMARK (1-800-625-6275).

The Oakmark Funds are distributed by Harris Associates Securities L.P., member FINRA.
OAKMARK, OAKMARK FUNDS, OAKMARK INTERNATIONAL, and OAKMARK and tree design are trademarks owned or registered by Harris Associates in the US and/or other countries.

Natixis Distribution, LLC is a marketing agent for the Oakmark Funds, a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.


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