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An Excellent World Fund Despite Manager Changes

Greg Carlson

Greg Carlson: Oakmark Global earns a Morningstar Analyst Rating of Gold. Although there have been some manager changes here, we still have a lot of confidence in the fund because of a deep, experienced team and a proven valuation-focused approach.

Clyde McGregor, who has led the U.S. side of this portfolio since 2003, is expected to retire in about five to six years. However, he has already got an experienced comanager on the fund.

What gives us a lot of comfort about this fund is that the firm employs the same valuation-focused approach across all of its strategies. They are looking for companies that trade at steep discounts to their estimate of private market value. The fund is concentrated with about 35 to 45 stocks. It's essentially a best ideas portfolio from across the firm. It's generated an excellent record during McGregor's 14-year tenure on the fund, both from a total return and risk-adjusted return perspective. Fees are only about average here, but we think it's an excellent long-term holding.