Winnersrationale

“The Harris Associates U.S. Value Equity Fund seeks to invest in companies whose stocks are trading at a substantial discount to intrinsic value and have owner-oriented management teams. The fund follows a rigorous, independent fundamental research process that seeks to identify businesses with growing value. The portfolio is well-diversified across industries as a risk management tool without sacrificing stock selection,” said Twinkle Sparta, associate editor, Asian Private Banker.

“At the same time, the firm has a broader definition of value than many of its peers. A value investment to the firm is simply a business that trades below its estimate of intrinsic value, and the standard for that of around 60-65 cents on the dollar has been fairly consistent over time. Many of its holdings would profile as traditional value, trading at low multiples of reported earnings or book value.

“Relative to the S&P 500, the fund has outperformed over the 1- and 3-year time periods. However, the fund’s performance has been close to that of the S&P 500 over the 5-year period, despite the headwinds for value-oriented managers over this time period. The fund has outperformed the Russell 1000 Value Index over the 1-, 3-, and 5-year time periods.”