Value versus growth – or cheap versus expensive? – Natixis – 9.16.24

Summary:

Now On Demand

Investors today seemingly have no shortage of headlines to digest with potential rate changes, disparity of economic growth, and the upcoming election cycle. While market timing may be top of mind for many, at Harris | Oakmark we don’t make our investment decisions based on short-term macro dynamics.

Join us as we share our perspectives on today’s market and how we steer our investment approach with a long-term view by identifying stocks priced below our estimate of intrinsic value. We’ll also uncover why market performance could shift from growth to value stocks and the implications to portfolios.

Key topics we’ll address:

• Evolving market dynamics: Interest rates, GDP growth, market uncertainty and an election – how investors can put short-term stock price volatility to work for long-term results.
• Understanding growth versus value: Today the style box lines have blurred; growth can be cheap or expensive and value is not the opposite of growth. We look across the P/E continuum to select stocks that meet our criteria.
• The value of intangible assets: Buying high-quality businesses requires a deeper evaluation beyond balance sheets. Examine the investing criteria for companies expected to grow per share value over time.
• Where to invest for value: Explore where we are seeing opportunity – and how we are positioning portfolios given today’s market environment.

Accepted for 1 CFP^® / IWI / CFA CE Credit

Speakers:

Bill Nygren has been a manager of the Oakmark Select Fund since 1996 and Oakmark Fund since 2000. He was a manager of the Oakmark Global Select Fund from 2006 to 2023. Mr. Nygren is also the chief investment officer-U.S. at Harris Associates, which he joined in 1983, and a vice president of the Oakmark Funds. He served as the firm’s director of U.S. research from 1990 to 1998.

Mr. Nygren has received many accolades during his investment career, including being named Morningstar’s Domestic Stock Manager of the Year for 2001.

He holds an M.S. in finance from the University of Wisconsin’s Applied Security Analysis Program (1981) and a B.S. in accounting from the University of Minnesota (1980).

Michael Nicolas has been a manager of the Oakmark Fund since 2020 and a manager of the Oakmark Equity and Income Fund since 2022. He is also an investment analyst at Harris Associates and a vice president of the Oakmark Funds.

He started at Harris Associates in 2013 after serving as a managing director at Lakeview Investment Group. Prior to that, he was a senior analyst at Stratford Advisory Group.

Mr. Nicolas earned a B.B.A. from the University of Wisconsin-Madison (2002).

Jebb Tether is a Senior Vice President and Investment Strategist at Natixis Investment Managers. He is primarily focused on the equity strategies of our affiliate firm Harris Associates, the investment advisor to the Oakmark Funds. In his role, Jebb supports client service and business development efforts. He helps clients and prospects understand the investment process and positioning of the strategies and the role they can play in portfolio construction.

He joined the firm in 2007, in both analyst and product specialist roles. With over 20 years in the industry, his previous experience includes time with Income Research and Management, the Bank of Hawaii, and Eaton Vance.

He holds a BA from Connecticut College, and an MS in Investment Management from Boston University.