The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Harris Associates' U.S. Concentrated Strategy returned 9.21% net in Q2 2026, underperforming the Russell 1000 Value Index which returned 13.87%. The portfolio benefited from positions in Centene, which rallied on better-than-expected results and signs of stabilizing medical cost trends in managed care; ICON, which reported strong bookings and resumed buybacks after completing an accounting review; and Keurig Dr Pepper, which delivered strong sales led by cold beverages. Detractors included Intercontinental Exchange and Salesforce, both pressured by market concerns about AI disruption that the manager views as overblown. The manager initiated a position in Marsh & McLennan, the world's largest insurance broker, capitalizing on weakness from softening insurance rates despite strong fundamentals and margin expansion opportunities. Deere was eliminated. The strategy continues to emphasize value discipline, focusing on businesses trading at meaningful discounts to intrinsic value rather than chasing the market's narrow AI-driven leadership. The manager sees opportunities in quality companies that have fallen out of favor.
Harris Associates maintains a concentrated value strategy focused on owning high-quality businesses trading at meaningful discounts to intrinsic value, avoiding the temptation to chase popular market themes like AI spending.
The manager remains focused on owning businesses that trade at meaningful discounts to intrinsic value rather than chasing the market's most popular themes, consistent with their value investment philosophy. The tone is patient and disciplined, emphasizing selectivity over momentum.
As of Jul 28, 2026
Harris Associates L.P. is a Chicago-based investment firm founded in 1976 by Victor Morgenstern, operating as a subsidiary of Natixis Investment Managers while maintaining full control over investment decisions. The firm manages $93.75 billion in discretionary assets serving 2,347 clients through concentrated equity strategies and the Oakmark mutual fund family. Led by experienced professionals including Tony Coniaris (Co-Chairman, Co-CIO International), Bill Nygren (CIO-U.S.), and David Herro (Co-CIO International), the firm is registered with the SEC (CRD# 169810) and maintains extensive regulatory filings demonstrating institutional credibility and transparency.
Harris Associates employs a disciplined value investing philosophy focused on long-term intrinsic value rather than short-term market volatility. The firm seeks businesses priced at substantial discounts to intrinsic value, companies with expected long-term per-share growth, and management teams that act like owners. Their approach centers on fundamental research and concentrated positions in highest-conviction opportunities, typically maintaining 20-30 large-cap positions. The investment process emphasizes bottom-up idea generation through generalist analysts conducting research across industries, with ideas vetted by the investment committee before portfolio construction.
Lead Portfolio Manager & CIO
Moderate Conviction Bullish
Market Conviction
The strategy is explicitly concentrated with 7 named positions discussed in detail, each with specific thesis points and position sizing context (top contributors/detractors). The manager provides clear, falsifiable catalysts such as 'easing medical costs combined with improving reimbursement rates' for Centene and 'accelerating revenue growth in coming years' for ICON. Language is declarative: 'We do not view either of these developments as credible threats,' 'We believe the market is painting the software industry with too broad of a brush,' and 'We continue to believe strong execution and integration will help close the valuation gap.' The manager demonstrates willingness to hold through volatility (maintaining ICE and CRM despite market concerns) and adds to positions when they fall out of favor (MMC). This is high conviction with some hedging allowed, consistent with a 5-15 position concentrated value strategy.
Growth Outlook
Market outlook remains high conviction: International value strategy underperformed in Q1 2026 despite strong semiconductor and mining contributions. Manager actively repositioned portfolio with six new initiations, focu...
Risk Appetite
Risk appetite posture is moderate conviction: International value strategy underperformed in Q1 2026 despite strong semiconductor and mining contributions. Manager actively repositioned portfolio with six new initiations, focu...
Capital Deployment
The manager initiated one new position (Marsh & McLennan) and eliminated one position (Deere) during the quarter, representing capital rotation rather than net deployment or de-risking. No cash level data is provided, and the letter does not describe broad-based adding or trimming across the portfolio. The initiation of MMC was funded by the elimination of Deere, suggesting the portfolio remains fully invested with stable cash levels. This is net neutral activity with minimal net deployment, scoring just above 0.00 due to the willingness to rotate into a new opportunity.
Forward Guidance
Forward guidance signal: International value strategy underperformed in Q1 2026 despite strong semiconductor and mining contributions. Manager actively repositioned portfolio with six new initiations, focu...
Language Signal
The letter contains balanced directional language. Bullish terms include: 'meaningful earnings recovery,' 'well positioned for growth,' 'long runway for growth,' 'attractive industry,' 'strong organic revenue growth,' 'opportunity to invest,' and 'meaningful discounts to intrinsic value.' Bearish or cautious language includes: 'market concerns,' 'disruption,' 'fallen out of favor,' 'softening insurance rates,' and 'macroeconomic uncertainty.' The manager uses confident language about specific holdings but acknowledges market headwinds. Overall, the language leans more positive than negative, with opportunity-focused framing outweighing risk language.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. International value strategy underperformed in Q1 2026 despite strong semiconductor and mining contributions. Manager actively repositioned portfolio with six new initiations, focu...
Opportunity Density
The manager sees selective opportunities in defined areas. The initiation of Marsh & McLennan demonstrates the ability to find new ideas, described as 'an opportunity to invest in an industry-leading company at an attractive price.' The manager maintains conviction in existing holdings despite market headwinds, suggesting they continue to see value in current positions. However, the emphasis on 'meaningful discounts to intrinsic value' and avoiding 'chasing the market's most popular themes' suggests the manager is being selective rather than finding abundant opportunities across the market. The opportunity set is characterized as requiring discipline and patience, consistent with a selective but not sparse environment.
Time Horizon
The manager describes multi-year theses with explicit timeframes: 'meaningful earnings recovery in the coming years' for Centene, 'accelerating revenue growth in coming years' for ICON, and 'long runway for growth' for both ICE and ConocoPhillips. The strategy demonstrates willingness to hold through short-term volatility, maintaining positions in ICE and CRM despite market concerns. The emphasis on 'intrinsic value' and the concentrated nature of the portfolio suggest a patient, multi-year investment approach. However, the letter also discusses quarterly results and near-term catalysts (buyback resumption, integration progress), indicating some attention to 1-3 year milestones. This is consistent with a 2-4 year investment horizon typical of concentrated value strategies.
Top Conviction Themes
Key Catalysts
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