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%.
Communication services and financials were the leading sectors contributing to the fund's results. Industrials, however, detracted from the overall performance. The fund's letter is available for download.
In the letter, the fund highlighted Targa Resources Corp. (NYSE:TRGP) as a holding. Targa Resources owns and develops domestic infrastructure assets. As of January 13, 2026, its stock closed at $180.28 per share, giving the company a market capitalization of $38.795 billion. Over the past month, the stock returned -1.15%, and it has lost 12.27% of its value over the last 52 weeks.
Regarding Targa Resources, Oakmark Select Fund stated: "Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region's unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates approximately 90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re-contracting. Uncertainty around Permian oil production growth has recently weighed on the share price. However, in our view, Targa remains well-positioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value."
According to database records, 50 hedge fund portfolios held Targa Resources at the end of the third quarter, an increase from 48 in the previous quarter. Oakmark Fund initiated a position in the company last quarter.