Well-known Oakmark portfolio manager
is joining GuruFocus readers for a question and answer session. To
ask Bill a question, simply enter it in the comment section below.
We will publish his answers soon.
has been with Oakmark since 1983 and was named Morningstar's
Domestic Stock Manager of the Year for 2001. As a value-oriented
firm, Oakmark seeks stocks that are selling at a substantial
discount to their underlying business value, and sells holdings
when the price rises to meet the value. As of the start of the
year, Oakmark Fund has $9.7 billion in assets under management, and
Oakmark Select Fund has $3.8 billion.
In the second quarter, Nygren's Oakmark Fund beat the S&P 5% to
3%, and in the first half returned 15% compared to the index's 14%.
Over the longer-term - where his focus really lies - he has
returned 8.13% in 10 years and 11.9% in five years.
Bill added three new stocks to the fund in the second quarter as
well: Apache Corp. (
), General Motors (
) and National Oilwell Varco (
). He also added to his Apple (
His top holdings are Bank of America (
), American International Group (
), Capital One Financial Corp. (
), JPMorgan Chase & Co. (
) and DirecTV (
See his entire
long portfolio here
In his second quarter market commentary, Nygren talked at length
about the bond market. Though the Fed's decision to reduce its
bond-buying activity caused bond prices to decline, Nygren said, he
it did not change his opinion that equities are undervalued. From
"The bond market took quite a hit last quarter, but it would
require another big hit before it would potentially lower our
estimate of equity values. Rather than panicking about higher
interest rates, we are encouraged that investors, rather than
traders, are again buying bonds. And as investors regain control of
the bond market, we wouldn't be surprised to see rates continue to
rise somewhat. Actually, for some of our stocks - especially the
financials - we expect that their earnings will also increase as
rates rise. So, we continue to believe that equities are
attractively priced relative to both their own long-term history
and to the opportunities available in the bond market."
Don't forget to add your investing questions for Bill in the
comments box below. We look forward to reading them!
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