| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 0.120 | 0.084 | 0.143 |
| 2025 |
|---|
| 14.3% |
The Oakmark Select Fund delivered strong performance in Q4 2025, outperforming the S&P 500 with an 8.42% quarterly return driven by successful value investing in undervalued companies. Warner Bros Discovery was the top contributor as multiple acquisition offers created a bidding war, with Netflix acquiring the Streaming and Studios business while Paramount Skydance offered $30 per share for the entire company. The fund added Targa Resources, a leading midstream natural gas company controlling 90% of fractionation capacity at Mont Belvieu hub, purchasing shares at a discount despite Permian production uncertainty. Communication services and financials were the largest sector contributors while industrials detracted. Paycom Software declined alongside application software peers but management maintains conviction in the company's growth runway and AI resilience. The portfolio managers continue finding attractive opportunities in undervalued companies across various industries, particularly in areas left behind by the momentum rally, maintaining their disciplined value approach.
The Oakmark Select Fund focuses on investing in undervalued companies across various industries, seeking to capitalize on opportunities in areas overlooked by the broader momentum rally while maintaining a concentrated portfolio of high-conviction positions.
The fund maintains a constructive outlook on finding attractive investment opportunities in undervalued companies across various industries, particularly in areas that have been left behind in the recent momentum rally.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 13 2026 | 2025 Q4 | CHTR, EFX, GLIBA, GOOGL, IQV, LBRDK, NFLX, PAYC, TRGP, WBD | large cap, M&A, Media, Midstream, undervalued, value |
WBD PAYC TRGP |
Warner Bros Discovery was the top contributor as multiple parties submitted acquisition offers, with Netflix acquiring the Streaming and Studios business while Global Networks spins… |
| Oct 10 2025 | 2025 Q3 | KDP, WBD | Beverages, M&A, Media, Streaming, technology | - | The fund focuses on consolidation in media, beverage M&A, and technology efficiency themes. Warner Bros Discovery rose on acquisition speculation, while Keurig Dr Peppers strategic… |
| Jun 30 2025 | 2025 Q2 | - | financials, healthcare, technology, value | - | - |
| Mar 31 2025 | 2025 Q1 | GOOG, ICE, MOH | - | - | - |
| Dec 31 2024 | 2024 Q4 | ABNB, EFX, IQV, KDP, PAYC | - | - | - |
| Sep 30 2024 | 2024 Q3 | CBRE, GOOG | - | - | - |
| Jun 30 2024 | 2024 Q2 | CNC, GOOG, PAYC | - | - | - |
| Apr 15 2024 | 2024 Q1 | DE, LBRDA | - | - | - |
| Aug 1 2024 | 2023 Q4 | AXP, PAYC, PSX | - | - | - |
| Sep 30 2023 | 2023 Q3 | IQV | - | - | - |
| Jun 30 2023 | 2023 Q2 | COP | - | - | - |
| Mar 31 2023 | 2023 Q1 | FCNCA, SCHW | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
MediaWarner Bros Discovery was the top contributor as multiple parties submitted acquisition offers, with Netflix acquiring the Streaming and Studios business while Global Networks spins to shareholders. Paramount Skydance made a $30 per share offer for the entire company, creating a bidding war that unlocked shareholder value. |
Streaming M&A Content Entertainment Bidding |
MidstreamThe midstream energy industry is healthy with declining leverage, stronger balance sheets, and shareholders being rewarded through higher dividends and share buybacks. New tailwinds have developed including natural gas exports, data centers, and electrification trends driving demand growth. |
Pipelines Natural Gas LNG Cash Flow Infrastructure | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
BeveragesOlvi Oyj announced strategic acquisitions in Q1 2026, including Estonia's leading mineral water producer Värska Originaal, Bosnia's largest brewery Banjalucka Pivara, and a 51% acquisition of Brewery International. These transactions expand Olvi's non-alcoholic and alcoholic beverage portfolios, increase sales volumes, and strengthen production capabilities across the Baltics, Nordics, and Mediterranean markets. |
Water Alcohol Europe Nordics |
MediaEntravision was the fund's top performer in Q4, owning 49 television stations and 44 radio stations targeting Hispanic audiences. The company also operates a rapidly growing Advertising Technology & Services segment through Smadex subsidiary. Deregulation in broadcast television and radio should encourage industry consolidation. |
Advertising Media Broadcasting | |
Technology |
||
| 2025 Q2 |
FinancialsEuropean banks have been rehabilitated after years in purgatory, with returns of 77% in 2025. Return on equity has normalized above 12% following exit from ultra-low rates, while capital positions have been rebuilt. However, supportive factors are well-appreciated by markets, reflected in significant valuation re-rating. |
Banks Return On Equity Interest Rates Capital Valuations |
HealthcareHealthcare was the strongest relative contributor in the quarter with holdings increasing nearly +16% compared to benchmark returns of roughly +12%. Exact Sciences was acquired for a significant premium by Abbott Laboratories resulting in an +86% return, while other strong performers included Tarsus Pharmaceuticals, Glaukos following approval of a new product, Penumbra, and Repligen driven by strong earnings results. |
M&A Product Approval Earnings Biotech | |
Technology |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 13, 2026 | Fund Letters | William Nygren | WBD | Warner Bros. Discovery, Inc. | Communication Services | Media | Bull | NASDAQ | media, mergers, spin-off, Streaming, valuation | Login |
| Jan 13, 2026 | Fund Letters | William Nygren | PAYC | Paycom Software, Inc. | Information Technology | Application Software | Neutral | New York Stock Exchange | AI, buybacks, HR, Software, valuation | Login |
| Jan 13, 2026 | Fund Letters | William Nygren | TRGP | Targa Resources Corp. | Energy | Oil & Gas Midstream | Bull | New York Stock Exchange | Barriers, cashflow, infrastructure, midstream, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| CHTR | Weakest performers included Charter Communications (-24%) |
| EFX | We divested our position in Equifax during the quarter following a strategic shift by FICO, a leading provider of credit scores to the mortgage industry. FICO announced plans to sell its credit scores directly to mortgage underwriters, bypassing the credit bureaus and thereby pressuring the economics that EFX has historically captured in the credit-scoring value chain. |
| GLIBA | 95 percent of GLIBA right holders exercised their basic rights, and therefore our overallocation was relatively modest. The rights offering increased our weighting to the name at a highly attractive price that allows considerable upside to GLIBA's Alaska cable properties alone. At Liberty Media's analyst day this past November, Dr. Malone sounded bullish on GLIBA and expressed confidence that this company could evolve into the next Liberty Media vehicle. GLIBA has likely identified a couple of targets, but it is a crapshoot on when any acquisition closes. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| IQV | IQVIA contributed meaningfully as fears around biotech funding and clinical activity began to ease. While sentiment toward the sector remains fragile, the company's role as a mission-critical infrastructure to drug development remains unchallenged. The first leg of the industry's recent rally was sparked by stabilization, rewarding patience through a prolonged industry downturn. We expect the next leg to gain steam as the recovery accelerates. |
| LBRDK | Liberty Broadband was a detractor during the quarter. The U.S.-headquartered cable and satellite company's stock price declined as it is merging with Charter Communication in 2026 and its share-price now trades similarly to the Charter share-price. Charter reported weak earnings at the end of October. Broadband subscriber numbers and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) declined. Still, management is guiding to flat full-year EBITDA. Positively, broadband average revenue per user, free cash flow, and capital returns were strong. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| PAYC | Paycom Software was the top detractor during the quarter. The U.S.-headquartered human resources and employment services company's stock price declined alongside peers due to broad underperformance in the application software sector. We continue to believe Paycom has a long runway for future growth and that system-of-record software companies like Paycom will not be replaced by AI. We appreciate management's focus on ramping share repurchases, which we believe will add significant per-share value at today's stock price. |
| TRGP | Targa Resources is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region's unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates approximately 90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re-contracting. Uncertainty around Permian oil production growth has recently weighed on the share price. However, in our view, Targa remains well-positioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value. |
| WBD | Warner Bros Discovery (WBD) was the top contributor during the quarter. The U.S.-headquartered media company's stock price surged as multiple parties submitted offers to acquire all or part of the business. Following several rounds of bidding, WBD announced an agreement to sell its Streaming and Studios business to Netflix, while spinning the Global Networks business to shareholders. Paramount Skydance subsequently made a direct $30 per share offer to shareholders for the entire company. We are pleased with the steps the WBD board has taken thus far to unlock shareholder value. We will continue to closely monitor developments as this bidding war unfolds. |
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