OAKI brings Oakmark's concentrated value approach to international large caps, targeting deeply discounted companies in developed markets outside the U.S. where management teams are actively working to close valuation gaps.
How It Works
The fund runs a concentrated portfolio of typically 30-60 stocks selected through bottom-up fundamental analysis, focusing on companies trading below intrinsic value with catalysts for revaluation. Holdings are weighted by conviction rather than market cap, with top positions often exceeding 5% of the portfolio. The managers look for quality businesses with sustainable competitive advantages trading at meaningful discounts to their assessment of fair value.
Key Features
- Active management at passive pricing — 0% expense ratio makes this cheaper than index funds
- Concentrated conviction plays with 30-60 holdings versus 600+ in typical international indices
- Oakmark's 30+ year value discipline applied to international markets with proven stock-picking heritage
Risks
- Concentration risk — top 10 holdings can exceed 50% of assets, magnifying single-stock blowups
- Value trap exposure — cheap stocks can stay cheap or get cheaper in 20-40% drawdowns
- Currency risk unhedged — dollar strength can erase 10-15% of returns in bad years
Who Should Own This
Best for investors who want active international exposure but balk at paying 0.75-1.25% fees for it. Works as a satellite holding alongside passive international exposure, or as a core position for those who believe in concentrated value investing. The zero fee structure makes it compelling for long-term holders who can stomach the volatility of a focused portfolio.