Harris Oakmark’s Oakmark Select Fund returned 11.50% in the third quarter of 2026, significantly outperforming the S&P 500 Index’s 2.30% gain. The fund’s strong results were driven primarily by positions in information technology and health care, while holdings in consumer staples and real estate weighed on performance. In its investor letter, the fund highlighted Paycom Software, Inc. (NYSE:PAYC) as a leading contributor to these gains.
Paycom Software is a cloud-based human capital management provider serving small to mid-sized companies. The stock closed at $239.00 on October 14, 2026, giving the company a market capitalization of $10.58 billion. Shares are up 53.94% year to date and trade within a 52-week range of $104.90 to $247.78.
The Oakmark Select Fund stated that Paycom shares rose sharply after the company reported accelerating revenue growth and significant margin expansion. The fund noted that the improved financials were the result of recent cost-reduction efforts that boosted earnings and cash flow. Additionally, the market reacted positively to Paycom’s aggressive share repurchase program and management’s suggestion that current profitability levels are sustainable, which supports a higher valuation of the company’s long-term earnings power.
According to data cited in the report, 37 hedge fund portfolios held Paycom Software shares at the end of the second quarter, the same number as in the previous quarter. The report notes that while Paycom is acknowledged as a potential investment, certain artificial intelligence stocks are viewed as offering greater upside potential and less downside risk.