Oakmark Select Fund trailed the S&P 500 in Q2 as AI-led narrowness punished value strategies. Health care and staples helped; tech and energy hurt.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
The Oakmark Select Fund lagged the S&P 500 Index in the second quarter of 2026, hurt by its underweight in technology and energy stocks as the market's rally narrowed around AI beneficiaries.
Health care and consumer staples holdings were the fund's biggest contributors to relative performance for the three months ended June 30, according to the fund's quarterly commentary. Information technology and energy were the largest detractors.
The fund's investor class returned less than the benchmark during the period, though it has outperformed the S&P 500 since inception, Harris Associates said.
Harris Associates, the Chicago-based value shop founded in 1976, runs the fund with a philosophy of buying companies trading at discounts to their intrinsic value. The firm seeks businesses run by managers who think like owners and offers significant profit potential, the commentary said.
The market's narrow leadership persisted through the quarter, with investors continuing to favor companies seen as direct AI spending beneficiaries, the fund manager noted. That dynamic punished value-oriented funds like Oakmark Select that hold less exposure to the tech megacaps driving index returns.
Harris Associates' research process relies on a disciplined quantitative and qualitative screening, with analysts evaluating each company on its fundamental characteristics rather than Wall Street consensus, the firm said.
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