David Herro — The Globe Trotter

Why limit yourself to just one stock market?
David Herro

David Herro

David Herro launched his $5.4 billion Oakmark International fund in September 1992 and since then has achieved strong performance in all market conditions. To maintain this record, David goes shopping for bargain stock wherever that may take him – anywhere in the world. "The best reason to invest overseas," he says, "is to have greater access to undervalued companies. Why limit yourself to just one stock market? When you buy anything from a car to a washing machine, rarely is just one retailer visited. The same should be true for your investments."

To minimize risk, David puts disciplined stock selection ahead of industry or country selection. "The best way to navigate is to know your course ahead of time. Know the risk factors of the markets, avoid fads or trends and never invest if there's a lack of proper investment or regulatory infrastructure."

David Herro, CFA, joined Harris Associates (Chicago) in 1992 as an experienced portfolio manager and is now a partner and CIO of international investments. Previously with the State of Wisconsin Investment Board, he has over 16 years of investment experience. David holds a B.Sc.(Business/Economics, ‘83) and an MA (Economics ‘85) from the University of Wisconsin, and is a member of the Financial Analysts Federation.

David Herro's Scorecard

These five criteria contribute to the selection process which helped us to choose David Herro as one of our select group of Money Masters.

1 Manager Tenure Check!
2 Performance Results Check!
3 Style Consistency Check!
4 Regulatory Compliance Check!
5 Availability Check!

The fund we are investing in to gain access to Money Master David Herro is:

Fund Name:Oakmark International
Fund Symbol:OAKIX
Fund Summary:

Oakmark International fund seeks long-term capital appreciation. The fund normally invests in at least five countries outside of the United States focusing on securities considered to be undervalued relative to their underlying economic value. The advisor assigns long-term value primarily on the basis of a company's ability to generate cash flow. Quality of management, market share, and degree of pricing power provide other parameters of value. It may not invest more than 35% of assets in securities of companies based in emerging markets.

Oakmark International
  • Harris Associates, adviser to The Oakmark Funds, was founded in 1976 to provide investment advice to wealthy individuals and institutions.
  • The Oakmark Funds were introduced in August 1991 to bring the Harris Associates' value philosophy to a direct mutual fund investment vehicle.
  • Harris Associates' investing philosophy - to invest in companies trading at a significant discount to estimated intrinsic business value; companies that consistently grow in value over time; that have shareholder-oriented management teams.
  • Harris Associates' total over $60 billion of assets under management (6/30/05).
  • From September 1995, Harris Associates became a wholly-owned subsidiary of Nvest Companies who were acquired in October 2000 by IXIS Asset Management, a leading French institutional money management company.
  • L.P. Harris Associates has remained autonomous, retaining full control of investment decisions, investment philosophy, and day-to-day operations. This relationship provides Harris Associates with additional resources for the distribution of mutual fund and separate account investment businesses.

* Notes: The 10-year average return shown for OAKIX is for the 10-year period 01/01/96 - 12/31/05. The average was calculated by adding the results for the 10 consecutive calendar years shown and dividing that result by 10.

The 10-year average return and 10 individual annual performance results are shown with all dividends and gains reinvested and are net of all fund fees. All fund expenses have already been deducted from the percentage results shown.

Source for calendar year results: The mutual fund company's own data.

Past performance is no guarantee of future results. Actual future results will vary.

The Retirement Corporation of America (RCA) is under no obligation to use featured managers or funds and will change managers should they fail to meet our selection criteria.

Information pertaining to RCA's advisory operations, services and fees is set forth in RCA's current disclosure statement (copy available upon request from RCA).