Manager Change

We came in this morning to be greeted by this press release from the Oakmark Funds informing us that Chad Clark, the co-portfolio manager of the Oakmark International Small Cap Fund, has left the fund and firm. We take manager changes very seriously and prefer the managers of funds we use to stay around for a long, long time. At times, manager changes cause us to leave a fund, but we won’t be doing that in this case for two reasons. First, David Herro, who is the lead portfolio manager on this fund, is still in place. Second, Oakmark has a very clear philosophy of purchasing high quality companies trading at discounts to their intrinsic value that drives the investment process of all their funds. So we do not believe that Mr. Clark’s departure will lead to a fundamental change in the approach and performance of the Oakmark International Small Cap Fund. Still, while we monitor all the funds we use for client portfolios, we will be watching this one a little more closely.