This document provides a comprehensive overview of the Oakmark International Strategy's investment performance during the fourth quarter of 2025, highlighting both successful investments and those that faced challenges, alongside the overarching investment philosophy guiding the strategy.
Navigating Global Markets: A Strategic Investment Review
Understanding the Fourth Quarter's Financial Landscape for Oakmark International
During the reporting period, the portfolio for Oakmark International Strategy achieved a net return of 4.93%. This figure is closely benchmarked against the MSCI World ex USA Index, which recorded a return of 5.20% over the same timeframe. These numbers offer a snapshot of the strategy's competitive positioning within the international market.
Key Drivers of Positive Performance
Several companies significantly bolstered the portfolio's performance. Among these, Bayer, DSV, and Samsung Electronics Pfd stood out as primary contributors, reflecting strategic selections that capitalized on market opportunities. Their positive impact helped mitigate challenges faced elsewhere within the portfolio.
Factors Impeding Portfolio Growth
Conversely, some investments acted as detractors from the overall performance. Alibaba Group, CNH Industrial, and Dassault Systemes were identified as the main companies that weighed down the portfolio's returns, indicating areas where market conditions or company-specific issues posed headwinds.
Introducing the Oakmark International Strategy: A Glimpse into Q4 2025
This analysis is drawn from the detailed Oakmark International Strategy Q4 2025 Commentary, offering an excerpt that focuses on the critical aspects of the quarter's financial outcomes and the factors influencing them. It provides an essential read for understanding the strategic decisions and market dynamics at play.
The Foundational Principles of Harris Associates L.P.
Established in 1976 by dedicated investment professionals, Harris Associates L.P. operates on the conviction that sustained investment success is rooted in a consistent philosophy, rigorous investment research, and exceptional client service. These core beliefs have remained steadfast, even as the client base has expanded over the decades.
Our Value-Oriented Investment Philosophy
As value investors, our firm believes that, over time, the intrinsic value of a company will ultimately be reflected in its stock price. Our approach to constructing client portfolios involves identifying companies whose market valuations appear significantly discounted relative to their underlying worth. We prioritize businesses with substantial profit potential and management teams that operate with an owner's mindset.
The Rigor of Our Investment Process
Our investment process is framed around the concept of owning a share of a business for the long term. This perspective underscores the importance of intensive, fundamental research. Our research methodology employs a disciplined quantitative and qualitative screening process. We pride ourselves on being independent thinkers, avoiding reliance on external market sentiment. Our experienced team of analysts adopts a generalist approach, meticulously evaluating each company based on its fundamental characteristics to uncover true value.
