Fund Manager - Clyde S. McGregor / Ed Studzinski
Fund Manager Tenure: 13.5 years [Other Funds: OAKGX]
Annual Operating expense: .81
This is our largest holdings and one such fund you can use to build your portfolio around it. The Oakmark Equity and Income Fund seeks income and preservation and growth of capital. It's designed for investors who want to tap into the potential of stocks, yet want the cushion bonds may provide. The Fund is primarily made up of U.S. equity and fixed-income securities. Truly, Kiplinger calls it one stop investing solution.
Oakmark, which is co-managed by Clyde McGregor and Ed Studzinski, was launched in November 1995. From then through March 6, it returned an annualized 10%, an average of seven percentage points per year better than Morningstar's benchmark of balanced funds and seven points more than Standard & Poor's 500-stock index. Over the past ten miserable years, the fund gained 8% a year, while a basket of balanced funds returned a shade above 0% on average.
And Oakmark Equity & Income has been remarkably consistent. In its 13 full years of operation, it has landed in the top 20% of balanced funds nine times and has never been in the bottom 40% of its peer group. In 2008, the fund lost 16%, compared with the S&P 500's decline of 37%
Top 10 Equity holdings as of March 31st, 2009 from Oakmark.com
Security Percent of Net Assets
XTO Energy, Inc. 3.64 %
EnCana Corp 2.73 %
Nestle SA 2.66 %
General Dynamics Corporation 2.59 %
ConAgra Foods, Inc. 2.45 %
Avon Products, Inc. 2.40 %
CVS Caremark Corporation 2.28 %
Diageo plc 2.21 %
Apache Corporation 2.13 %
Hospira, Inc. 2.05 %
As an investor in OAKBX, I love receiving quaterly newsletter and fund commentary from the managers. It offers some great insight into investing with broader macros economics. Perhaps the best fund for growth and capital preservation and with managers you can trust on.
Interesting comments from manager in one such commentary
"If we cannot explain a potential investment to our clients in a few simple declarative sentences, the investment is probably a bad idea. We also have an aversion to anything that smart salespeople are trying hard to sell to us. Mortgage-backed securities presented us with both complexity and the hard sell, and given our temperament, this made them easy for us to avoid."
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