Harris Associates L.P. is a

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...

-based

investment company An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under t ...

that manages $86 billion in assets as of September 30, 2022. Harris manages long-only U.S. equity, international equity, and global equity strategies which are offered through its mutual fund company, the Oakmark Funds, and other types of vehicles. Harris is wholly owned by

Natixis Investment Managers Natixis Investment Managers is an American French-based global asset management company that claims USD $1389.7 billion in assets under management as of December 31, 2020. The company has headquarters in Paris and Boston Boston (), offi ...

, an American-French financial services firm that is principally owned by

BPCE Groupe BPCE (for Banque Populaire Caisse d'Epargne) is a major French banking group formed by the 2009 merger of two major retail banking groups, Groupe Caisse d'Épargne and Groupe Banque Populaire. As of 2021, it was France's fourth largest ...

.Harris Associates retains full control of investment decisions, investment philosophy, and day-to-day operations.

History

Harris Associates was founded in 1976 by Victor Morgenstern, Myron Szold, Roger Brown, Ralph Wanger, Joe Braucher, Peter Foreman, Ed Neisser and Earl Rusnak, who had previously worked in the private investment office of Chicago entrepreneur

Irving Harris Irving B. Harris (August 4, 1910 – September 25, 2004) was an American businessman and philanthropist. With his brother Neison, he co-founded the Toni Home Permanent Company, which was sold to the Gillette Safety Razor Co. in January 1948 for $ ...

. Irving Harris was not directly related to the Norman Harris who established

Harris Bank BMO Harris Bank, N.A. is an American bank based in Chicago, Illinois. It is a member of the Federal Reserve System and operates branches in the states of Illinois, Indiana, Arizona, Missouri, Minnesota, Kansas, Florida, Wisconsin, and Californ ...

Investment philosophy

Harris Associates is considered to be a

value investor Value or values may refer to: Ethics and social * Value (ethics) wherein said concept may be construed as treating actions themselves as abstract objects, associating value to them ** Values (Western philosophy) expands the notion of value bey ...

. The investment process entails investing in businesses that are trading at a discount to intrinsic value. The intrinsic value is based on a discounted cash flow analysis that takes into account the quality of management and the company's ability to grow. According to research by Morningstar in April 2013 which analyzed the performance of the seven Oakmark funds over a five-year period, four were ranked in at least the top 2% in their relevant categories.

Investment managers

As of 2020, notable investment managers include Bill Nygren, who joined in 1983 is known for a value investing approach.

Supreme Court case

In 2009, the U.S. Supreme Court agreed to hear '' Jones v. Harris Associates'', a suit brought in federal court by a group of 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. The suit previously had been thrown out by the

United States Court of Appeals for the Seventh Circuit The United States Court of Appeals for the Seventh Circuit (in case citations, 7th Cir.) is the U.S. federal court with appellate jurisdiction over the courts in the following districts: * Central District of Illinois * Northern District of ...

in 2008, with a judge who is a noted free-market backer,

Richard Posner Richard Allen Posner (; born January 11, 1939) is an American jurist and legal scholar who served as a federal appellate judge on the U.S. Court of Appeals for the Seventh Circuit from 1981 to 2017. A senior lecturer at the University of Chic ...

arguing that sometimes marketplaces need to be reined in. In March 2010, the Supreme Court unanimously vacated the Seventh Circuit's ruling and remanded the case.

Investments

As of JANUARY 25, 2023, Harris Associates reported a holding of below 3 per cent in the

Credit Suisse Group Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global ...

References

External links

*{{Official website, http://www.harrisassoc.com Investment management companies of the United States Companies based in Chicago Financial services companies established in 1976 1976 establishments in Illinois