FANG - Oakmark Fund: Second Quarter 2019
The Oakmark Fund (OAKMX) increased 3.2% for the second quarter of 2019, which lagged slightly behind the 4.3% gain for the S&P 500, the Fund's benchmark. The Fund benefited from Occidental Petroleum's (OXY) acquisition offer for Anadarko Petroleum (APC) and we sold our Anadarko holding following an increase of over 50% for the quarter. A significant decline in oil prices allowed us to replace Anadarko with three new exploration and production (E&P) companies. U.S.-focused E&Ps have meaningfully improved their capital efficiency profile through the oil downturn. We expect them to generate excess returns given their