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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Oakmark Select Fund 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Oakmark Select Fund)

Primary Source Intelligence • Q3 2026 Letter Analysis

Oakmark Select Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Oakmark Select Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+11.5%

YTD+12.22%

Annualized+12.08%

Positioning StanceCONSTRUCTIVE

GeographyUS

Digest Analysis

Quick Take

"Oakmark Select Fund returned 11.50% net of fees in Q3 2026, driven by strong gains in information technology and health care holdings like Paycom Software, while initiating new positions in Meta Platforms and Rocket Companies."

Executive Summary

During the third quarter of 2026, the Oakmark Select Fund (Investor Class) returned 11.50% net of fees, outperforming the benchmark S&P 500 Index return of 2.30% and the Russell 1000 Value Index return of 2.61%. Year-to-date, the fund has generated a net return of 12.22%. Sector performance was propelled by robust contributions from information technology and health care holdings, whereas positions in consumer staples and real estate detracted from relative performance. From a macroeconomic perspective, the managers observe that overall equity index returns continue to be heavily dominated by a narrow cohort of mega-cap U.S. companies. However, this extreme market concentration creates attractive valuation dislocations across uncrowded areas of the broader market. Oakmark remains disciplined in underwriting high-quality franchises trading at meaningful discounts to intrinsic value, maintaining a constructive outlook as the pricing spread between underlying corporate value and market quotation narrows. Portfolio activity reflected selective capital redeployment into mispriced market leaders. Oakmark initiated new purchases in Meta Platforms (3.5% weighting) and Rocket Companies (2.2% weighting), capitalizing on sentiment-driven weakness surrounding artificial intelligence expenditures and cyclical trough mortgage originations, respectively. Simultaneously, the fund completely liquidated its position in Phillips 66.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

78%

CautiousHigh

High Conviction (78%)

Market Conviction

Oakmark Select maintains a concentrated portfolio where top positions such as Salesforce (7.4%) and IQVIA (6.2%) carry substantial capital commitments. The managers back their highest-conviction ideas through direct, sizing-oriented language and took advantage of multiple-compression to establish new multi-percent positions in Meta and Rocket.

65%

BearishBullish

Bullish (65%)

Growth Outlook

Management expresses measured optimism, noting that while broader indices remain heavily crowded in select mega-caps, high-quality opportunities outside the leaders trade at attractive discounts. The letter strikes a confident tone regarding the closing of the gap between price and intrinsic value over time.

72%

DefensiveAggressive

Aggressive (72%)

Risk Appetite

Capital positioning is decidedly risk-tolerant, deploying capital into cyclical and controversial franchises experiencing sentiment headwinds, such as mortgage originator Rocket Companies and digital auto lender Ally Financial. There is no indication of cash accumulation or defensive hedging.

60%

De-riskingDeploying

Net Neutral (60%)

Capital Deployment

Deployment was balanced to mildly active, characterized by two new additions (Meta and Rocket totaling 5.7% of fund assets) offset by the complete liquidation of Phillips 66, reflecting disciplined capital recycling rather than a massive net exposure shift.

70%

CautiousExpansionary

Expansionary (70%)

Forward Guidance

Action bias is oriented toward selective accumulation, evidenced by opening two new positions (Meta Platforms and Rocket Companies) at steep discounts to intrinsic value while entirely exiting Phillips 66 to redeploy capital into higher-return opportunities.

72%

BearishBullish

Bullish (72%)

Language Signal

The text employs predominantly bullish vocabulary emphasizing substantial earnings growth, accelerating revenues, attractive risk-reward profiles, and meaningful discounts to intrinsic value, balanced with standard discussions of macroeconomic caution.

42%

Low RiskElevated

Moderate Risk (42%)

Perceived Risk

The managers view broader economic risk as moderate and localized, highlighting investor caution regarding consumer credit and interest rate headwinds without warning of systemic credit collapse or broader financial crisis.

68%

ScarceAbundant

Abundant (68%)

Opportunity Density

Oakmark identifies ample idiosyncratic opportunities specifically outside the most crowded mega-cap equity leadership. The team successfully sourced and initiated two distinct new positions across disparate sectors during the quarter.

75%

Short-TermLong-Term

Decade+ (75%)

Time Horizon

The strategy explicitly stresses a patient, multi-year orientation, repeatedly emphasizing 'normalized' earnings power through cyclical downturns and waiting for the gap between price and intrinsic value to narrow.