The Oakmark Select Fund, advised by Harris Associates, has released its investor letter for the fourth quarter of 2025. The non-diversified fund, which invests in mid and large-cap U.S. companies, posted a return of 8.42% for the period. This performance exceeded the S&P 500 Index, which returned 2.66%.
At the sector level, communication services and financials contributed most positively to the fund's results. Industrials, however, detracted from the overall performance.
In the letter, the fund specifically highlighted Paycom Software, Inc. (NYSE:PAYC), a cloud-based human capital management solution provider. The fund stated that Paycom Software was the top detractor during the quarter. It attributed the stock's price decline to broad underperformance in the application software sector, a trend affecting its peers.
"We continue to believe Paycom has a long runway for future growth and that system-of-record software companies like Paycom will not be replaced by AI," the fund's letter stated. It also expressed appreciation for management's focus on increasing share repurchases, believing this would add significant per-share value at the current stock price.
Paycom Software's stock closed at $157.50 per share on January 13, 2026. Over the preceding month, it recorded a return of -5.67%. Over the last 52 weeks, its shares lost 23.30% of their value. The company has a market capitalization of $8.86 billion.
According to database information cited in the original report, 35 hedge fund portfolios held Paycom Software at the end of the third quarter of 2025, an increase from 34 in the prior quarter. The company reported total revenues of $493 million for Q3 2025, a year-over-year increase of 9.1%.