The top five holdings of this 3-star-rated fund are Credit Suisse Group AG (CSGKF, 4.72% of assets); CNH Industrial NV (CNHI, 4.71%); Lloyds Banking Group PLC (LLDTF.L, 4.68%); Allianz SE (ALIZF.DE, 4.50%) and Bank of America Corporation (BAC, 4.44%).
Oakmark Global Investor (OAKGX)
From Moneyletter
Oakmark Global (OAKGX) underwent some changes in the second half of 2016, as one of its managers retired and it reopened to new investors after having been closed for nearly two years.
As a global fund, Oakmark Global invests not only abroad, but also in the US. The US portion of the fund is managed by Clyde McGregor of Harris Associates (the fund’s advisor). Harris announced at the end of July that Rob Taylor, manager of the international portion of assets since 2005, would retire at the end of September. David Herro, who has built a fine record at Oakmark International, has joined McGregor in managing the Global fund.
The Oakmark process All of Oakmark’s funds are managed using a fundamental research process to identify companies that meet its value criteria. Oakmark states, “We look for management teams that seek to maximize a company’s long-term business value by running efficient operations that emphasize free cash flow generation and wise capital allocation.”
Oakmark favors companies where the management has a significant ownership stake. The research team at Oakmark scours the domestic and international markets using a variety of methods to generate investment ideas. The first cut of ideas then undergoes “rigorous qualitative and quantitative review to identify the best values in the market.” The final cut creates an “approved list” of US and international securities, with typically between 120 and 180 names on each list.
All of the Oakmark funds generally hold fewer than 75 securities. Oakmark’s philosophy is to have its best investment ideas have a meaningful impact on performance. That said, it also acknowledges that relatively concentrated portfolios can lead to more short-term fluctuations compared to more broadly diversified funds in the same category.
Walter Frank, Moneyletter, www.moneyletter.com, 800-890-9670, April 2017