Harris Associates
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages)
|
| Company type | Private (subsidiary) |
|---|---|
| Industry | Investment Management |
| Founded | 1976 |
| Founder | Victor Morgenstern |
| Headquarters | Chicago, Illinois, U.S. |
| Products | |
| AUM | US$96 billion (Q2 2025) |
Number of employees | 217 (July 2024) |
| Parent | Natixis Investment Managers (BPCE) |
| Website | www |
| Footnotes / references [1] | |
Harris Associates L.P. is a Chicago-based investment company with $96 billion under management[2] as of June 30, 2025. Harris manages long-only U.S. equity, international equity, and global equity strategies, offered through its mutual fund company, the Oakmark Funds, and other types of vehicles. Harris is owned by Natixis Investment Managers, an American-French financial services firm that BPCE owns. Harris Associates fully controls investment decisions, philosophy, and day-to-day operations.
History
[edit | edit source]Harris Associates was founded in 1976 by Victor Morgenstern,[3] Myron Szold, Roger Brown, Ralph Wanger,[4] Joe Braucher, Peter Foreman, Ed Neisser and Earl Rusnak, who had previously worked in the private investment office of Chicago entrepreneur Irving Harris. Irving Harris was unrelated to the Norman Harris who established Harris Bank.[citation needed].
Investment philosophy
[edit | edit source]Harris Associates is considered to be a value investor. The investment process entails investing in businesses trading at a discount to intrinsic value. The intrinsic value is based on a discounted cash flow analysis that considers the quality of management and the company's ability to grow.[5] According to research by Morningstar in April 2013. which analyzed the performance of the seven Oakmark funds over five years, four were ranked in at least the top 2% in their relevant categories.[6]
Investment managers
[edit | edit source]As of 2020, notable investment managers include Bill Nygren, who joined in 1983,[7] and is known for a value investing approach.[8]
Supreme Court case
[edit | edit source]In 2009, the U.S. Supreme Court agreed to hear Jones v. Harris Associates, a suit brought in federal court by mutual fund investors against the firm. The mutual fund investors, who are investors in the Oakmark funds, claimed that the funds have overpaid their advisor (Harris Associates), and that the fees that Harris Associates charges Oakmark investors are higher than the fees that Harris charges institutional clients.[9]
The suit was previously thrown out by the United States Court of Appeals for the Seventh Circuit in 2008, with a judge who is a noted free-market backer, Richard Posner, arguing that sometimes marketplaces need to be reined in.[10][11]
In March 2010, the Supreme Court unanimously vacated the Seventh Circuit's ruling and remanded the case.[12]
References
[edit | edit source]- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).[dead link]
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ http://analysis.morningstar.com/analystreport/far.aspx?t=OAKLX®ion=USA&culture=en-us
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
- ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).