This report provides a detailed overview of the Oakmark Global All Cap Strategy's performance during the fourth quarter of 2025, highlighting key drivers of returns, market conditions, and strategic portfolio adjustments. It aims to offer insights into how the strategy navigated global equity markets and achieved its strong results.
Navigating Global Markets: A Quarter of Outperformance
Exceptional Quarterly Performance
During the recent reporting period, the Oakmark Global All Cap Strategy achieved a notable net return of 4.99%. This figure significantly surpassed the 3.12% return posted by its benchmark, the MSCI World Index, underscoring the strategy's robust performance in a dynamic global market environment.
Broad Market Gains Across Sectors
The fourth quarter witnessed a widespread upward trend in global equities, with an impressive ten out of eleven GICS sectors recording positive returns. This broad-based market strength provided a favorable backdrop for the strategy's holdings. Leading the contributions to market performance were the healthcare and financial sectors, which demonstrated particular resilience and growth. Conversely, the real estate sector was the sole detractor, indicating specific challenges within that segment of the market.
Strategic Portfolio Adjustments
In line with its active management approach, the Oakmark Global All Cap Strategy made targeted adjustments to its portfolio during the quarter. Notably, positions in General Motors and Mercedes-Benz Group were divested. These decisions reflect the ongoing evaluation of holdings and a proactive stance in optimizing the portfolio for future growth and risk management.
Adapting to Market Dynamics
The successful navigation of diverse market conditions, characterized by broad sector gains and strategic divestitures, illustrates the strategy's adaptability. The management team's ability to identify and capitalize on opportunities while mitigating risks contributed to the overall outperformance, reinforcing the strategy's commitment to delivering superior returns for its investors.
