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Oakmark Opportunistic About Energy

Despite the drop in natural gas prices, certain firms in the energy sector are showing their value, says Oakmark manager Clyde McGregor.

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Shannon Zimmerman: So, let's talk about the equity part of Oakmark Equity in Income. We were talking before we began taping this segment, and the fund does have a pretty substantial exposure to industrials, overall more of a cyclical bent than a defensive cast right now.

I understand that shopwide Oakmark managers are not making any kind of top-down calls. They're not looking at sector allocations per se in the way you back in to your sector allocations through the bottom-up process, the stocks that you find most attractive. At the end of that process though, the result among many, one result is that you do have sector allocations that can be out of whack, or out of sync relative to the index.

Shannon Zimmerman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.