Oakmark Equity & Income Favors Stocks as Bond Yields Remain Low

Clyde McGregor, manager of the Oakmark Equity & Income fund, provided his outlook on stocks and bonds in a note to shareholders this month.

The challenge for a fund that invests in both stocks and bonds is to strike the proper balance between the two. That's a tall order in today's low-interest environment. "On a risk-adjusted basis, bonds cannot compete with equities given current interest rates," McGregor noted. 

To compensate, the fund currently has 70 percent of its assets invested in stocks and the balance in short-duration bonds.

To learn more, read his full letter by clicking here.

Oakmark Equity & Income is a component of the Bradway Strategic Portfolio, which consists primarily of investments with top money managers.