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 |
|---|---|---|---|---|---|---|
The Oakmark Fund underperformed the S&P 500 Index in Q2 2026, returning 2.45% versus 15.20% for the benchmark, as the market's narrow leadership favoring AI-related companies persisted. The fund remains committed to its value investment philosophy, focusing on businesses trading at meaningful discounts to intrinsic value rather than chasing popular themes. Delta Air Lines was the top contributor, benefiting from improved industry rationality in passing through higher fuel costs and strong travel demand in premium segments. ConocoPhillips was the top detractor as crude prices eased after spiking due to the Iran War, though fundamentals remain solid. The fund initiated two new positions: Booking Holdings at a ten-year trough valuation despite overblown AI disruption concerns, and Equitable Holdings at less than 6x estimated 2027 distributable cash flow ahead of its accretive merger with Corebridge Financial. The managers exited Accenture, EOG Resources, Marathon Petroleum, and Warner Bros Discovery. Industrials and financials were the largest contributors at the sector level, while information technology and energy detracted.
The Oakmark Fund maintains a disciplined value investment approach, focusing on businesses trading at meaningful discounts to intrinsic value rather than chasing popular market themes such as AI. The fund initiated positions in Booking Holdings at a ten-year trough valuation and Equitable Holdings at less than 6x estimated 2027 distributable cash flow, both at meaningful discounts to intrinsic value. Despite underperforming the S&P 500 in Q2 2026, the fund continues to see attractive opportunities in select areas including airlines, online travel, and financial services, while avoiding overvalued AI-related equities.
The fund continues to adhere to its value investment philosophy, focusing on businesses trading at meaningful discounts to intrinsic value rather than chasing popular market themes. The managers see Delta Air Lines as especially well positioned to benefit from improved airline industry profitability. ConocoPhillips is expected to deliver growth from its geographically diverse energy portfolio. Booking Holdings was purchased at a ten-year trough valuation despite concerns about AI disruption, which the managers view as overblown. Equitable Holdings is expected to benefit from its merger with Corebridge Financial and trades at an attractive valuation relative to its earnings quality.
As of Jul 15, 2026
Founded in 1976, Harris Associates L.P. operates as an autonomous subsidiary of Natixis Investment Managers and manages the Oakmark Funds family launched in 1991. The firm is led by seasoned investment professionals including Bill Nygren (CIO since 1983, managing Oakmark Fund since 2000), David Herro (international CIO since 1990s, multiple Morningstar Manager of Year awards), and Tony Coniaris (Co-CIO International). The management team demonstrates strong alignment of interests through significant personal investment in the funds they manage. Harris Associates has built a reputation for disciplined value investing with concentrated portfolios and contrarian positioning when opportunities arise.
Quality Value / Growth
Lead Portfolio Manager
William C. Nygren
Managing Partner
Moderate Conviction Bullish
Market Conviction
The fund demonstrates moderate-to-high conviction through specific position sizing language and clear thesis articulation. Delta Air Lines is described as the top contributor at 3.1% of portfolio, and the managers state they see it as especially well positioned. New purchases in Booking Holdings and Equitable Holdings are described with detailed fundamental analysis and explicit valuation metrics (ten-year trough valuation for Booking, less than 6x 2027 distributable cash flow for Equitable). The managers use declarative language about their value discipline and willingness to avoid popular themes. However, the portfolio appears diversified with multiple positions across sectors, and some hedging language is present (we believe, we view). The combination of named positions with sizing, specific valuation metrics, and clear catalysts supports a score in the moderate-to-high conviction range.
Growth Outlook
Market outlook remains low conviction: Oakmark warns that the S&P 500 has evolved into a highly concentrated, risky growth proxy. It argues that the extreme valuation gap relative to Oakmark's low-P/E portfolio presents...
Risk Appetite
Risk appetite posture is moderate conviction: Oakmark warns that the S&P 500 has evolved into a highly concentrated, risky growth proxy. It argues that the extreme valuation gap relative to Oakmark's low-P/E portfolio presents...
Capital Deployment
The fund initiated two new positions (Booking Holdings and Equitable Holdings) while exiting four positions (Accenture, EOG Resources, Marathon Petroleum, and Warner Bros Discovery). This represents capital rotation rather than net deployment or de-risking. No cash level data is provided to indicate whether net exposure increased or decreased. The activity suggests active portfolio management with proceeds from sales funding new purchases, which scores near neutral. The slight positive tilt reflects that the managers describe the new purchases as attractive opportunities at meaningful discounts, suggesting modest deployment bias within the rotation.
Forward Guidance
Forward guidance signal: Oakmark warns that the S&P 500 has evolved into a highly concentrated, risky growth proxy. It argues that the extreme valuation gap relative to Oakmark's low-P/E portfolio presents...
Language Signal
The letter contains balanced directional language. Bullish terms include: attractive valuations, meaningful discounts to intrinsic value, improved profitability, healthy demand, competitive position, long runway for growth, and accretive merger. Bearish or cautious language includes: underperformed, narrow leadership, chasing popular themes, weakened sentiment, disruption concerns, and near-term headwinds. The net balance leans mildly positive given the emphasis on attractive valuations and specific opportunities, but the cautious framing around AI and market leadership prevents a higher score.
Perceived Risk
Perceived risk level is evaluated as high conviction. Oakmark warns that the S&P 500 has evolved into a highly concentrated, risky growth proxy. It argues that the extreme valuation gap relative to Oakmark's low-P/E portfolio presents...
Opportunity Density
The managers demonstrate selective opportunity identification across multiple areas. They initiated two new positions at what they describe as attractive valuations (Booking at ten-year trough valuation, Equitable at less than 6x distributable cash flow). They see Delta as especially well positioned and ConocoPhillips as having a long runway for growth. However, they also emphasize the need for selectivity and discipline, explicitly stating they focus on businesses trading at meaningful discounts rather than chasing popular themes. The tone suggests opportunities exist but require careful selection, placing this in the selective-to-moderate opportunity range rather than broad abundance.
Time Horizon
The managers demonstrate a multi-year investment horizon with limited near-term catalyst dependency. They describe Booking's competitive position as reinforced by decades of direct integrations and discuss the airline industry emerging from the fuel price shock with improved profitability (implying a multi-quarter to multi-year view). For Equitable Holdings, they reference 2027 distributable cash flow estimates, indicating at least a 1-2 year outlook. The emphasis on intrinsic value investing and willingness to buy at trough valuations suggests patience for thesis realization. However, some near-term catalysts are mentioned (merger closing, oil price movements), preventing a score above 0.75. The overall tone reflects a patient, multi-year approach typical of value investors.
Top Conviction Themes
Key Catalysts
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