AAny investors hoping to find a mutual fund equity reporting fund might consider looking beyond Oakmark Select Investor (OAKLX). OAKLX has a Zacks Mutual Fund Rank of 5 (Strong Selling), which is based on nine predictor factors such as size, cost, and past performance.
Oakmark is based in Kansas City, MO, and is the director of OAKLX. Oakmark Select Investor debuted in November 1996. Since then, OAKLX has accumulated assets of approximately $1.63 billion, according to the most recent information available. The current fund manager, William C. Nygren, has been in charge of the fund since November 1996.
Of course, investors are looking for strong performance in funds. This particular fund has delivered a 5-year annualized total return of 7.35% and is in the bottom third of its peers in the category. If you’re interested in shorter timeframes, don’t discount the fund’s 3-year annualized total return of 15.26%, which puts it in the top third over that time frame.
When looking at a fund’s performance, it’s also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. OAKLX’s standard deviation over the past three years is 25.66% from the category average of 16.35%. Over the last 5 years, the fund’s standard deviation is 23.56% against a category average of 14.62%. This makes the fund more volatile than its peers over the past half-decade.
With a 5-year beta of 1.28, the fund should be more volatile than the market average. Alpha is an additional metric to consider, as it represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which in this case is the S&P 500. The 5-year performance of OAKLX produced a negative alpha of -7.35. , which means that the managers of this portfolio find it difficult to choose stocks that generate returns above the benchmark.
Examining the stock holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as whether there are any inherent biases in their approach. For this particular fund, the focus is largely on stocks that are traded in the United States.
The mutual fund currently holds 92% of its holdings in stocks, which have an average market capitalization of $275.01 billion. The fund has the highest exposure to the following market sectors:
- Not durable
For investors, it is essential to take a closer look at cost-related metrics, as costs are increasingly important for mutual fund investments. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, OAKLX is a no-load fund. It has an expense ratio of 0.98% compared to the category average of 1.10%. Looking at the fund from a cost perspective, OAKLX is actually cheaper than its peers.
Investors should be aware that with this product the minimum initial investment is $1,000; each subsequent investment has no minimum amount.
Overall, Oakmark Select Investor (OAKLX) has a low Zacks Mutual Fund ranking, and in conjunction with its relatively poor performance, worse downside risk, and lower fees, Oakmark Select Investor (OAKLX) seems like a top choice. somewhat weak for investors at the moment.
Don’t stop here for your fund research on the Mutual Fund Stock Report. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check www.zacks.com/funds/mutual-funds for more information on the world of funds, and feel free to compare OAKLX to its peers as well for more information. For analysis of the rest of your portfolio, be sure to visit Zacks.com for our comprehensive suite of tools that will help you investigate all of your stocks and funds in one place.
Zacks names ‘only one best choice for doubling up’
From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.
It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could step in at any time.
This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.