The Oakmark Global Fund delivered exceptional results in the final quarter of 2025, outperforming its benchmark, the MSCI World Index, across multiple timeframes, including the quarter, the entire calendar year, and since its establishment. This robust performance was largely fueled by strong showings in the healthcare and information technology sectors, although consumer staples presented a notable challenge. Geographically, the fund maintained a significant presence in the U.S. and Europe, with strategic investments reflecting its long-term value-oriented philosophy. New additions to the portfolio, such as Gartner and Mondelez International, underscore the fund's proactive approach to identifying and capitalizing on undervalued opportunities.
Oakmark Global Fund's Q4 2025 Investment Insight
In the fourth quarter of 2025, the Oakmark Global Fund (Investor Class) achieved impressive gains, surpassing the MSCI World Index for the quarter, the full year, and since its inception. This strong performance was primarily driven by the healthcare and information technology sectors, which proved to be the most significant contributors. Conversely, the consumer staples sector was the sole detractor from performance.
A detailed look at the fund's top contributors reveals Samsung Electronics, a South Korea-based technology giant, as a key driver of growth. Its stock price surged following a sharp recovery in earnings, propelled by robust performance in its core semiconductor business. The fund's managers expressed confidence in Samsung's High Bandwidth Memory product line, noting continuous improvements under new leadership and reaffirming their belief in the company's long-term growth potential as a global leader in semiconductors.
DSV and IQVIA Holdings also made substantial positive contributions to the fund's performance during this period.
On the detractor side, China-based technology conglomerate Alibaba Group experienced a stock price decline after reporting mixed results. While its core e-commerce and cloud businesses showed accelerating revenue growth, significant spending on subsidies for its Quick Commerce venture negatively impacted earnings. However, the fund maintains a positive long-term outlook, anticipating reduced losses from Quick Commerce and believing in Alibaba's strong positioning for future growth, particularly given its early investments in Chinese AI.
Other significant detractors included CNH Industrial and Charter Communications Class A.
During the quarter, the fund made new investments in Gartner and Mondelez International. Gartner, a leader in research services, was acquired amidst investor concerns about AI-related disruption, which the fund views as overstated. They believe Gartner's strong brand, customer engagement, and market opportunities will drive organic growth. Mondelez International, a global snacking powerhouse with iconic brands like Cadbury and Oreo, was added due to its strong market position, robust pricing power, and the expectation that easing commodity costs will improve margins, presenting a discounted valuation opportunity.
The fund also exited positions in General Motors and Mercedes-Benz Group.
Geographically, the fund's top allocations were 51.2% in the U.S., 39.0% in Europe excluding the U.K., and 5.6% in the U.K. For the quarter, the U.S., Switzerland, and South Korea were the largest regional contributors, while China, the Netherlands, and Sweden were the primary detractors. Emerging markets constituted 4.3% of the portfolio.
The fund's leadership includes portfolio managers David G. Herro, CFA (joined Harris in 1992), Tony Coniaris, CFA (1999), Eric Liu, CFA (2009), M. Colin Hudson, CFA (2005), and John A. Sitarz, CFA, CPA (2013).
The Oakmark Global Fund's continued outperformance underscores the value of diligent, fundamental research and a long-term investment horizon. Their ability to identify and invest in companies trading at a discount to their intrinsic value, even when facing short-term headwinds or market skepticism, has consistently yielded positive returns. The strategic emphasis on resilient sectors like healthcare and technology, combined with a willingness to capitalize on perceived mispricings in companies like Gartner and Mondelez, demonstrates a proactive and disciplined approach. This report serves as a valuable reminder that patient, research-driven investing can navigate market fluctuations and achieve sustained growth, offering a compelling blueprint for other investors seeking similar success.
