"After tanking in 2007, Oakmark Select (OAKLX) is now riding at the top the pack in 2009," says fund expert Walter Frank in MoneyLetter. Here's his review of the value-focused fund.

"The fund languished within the bottom half of its peer group from 2003 to 2007. In part, it was the fund's avoidance of energy on the one hand, and its investment in financials, on the other, that held it back.

"The biggest contributor to its 14% loss i 2007 was Washington Mutual. Fund manager Bill Nygren was attracted by the bank's growing deposit base and over time the bank accounted for mor than 15% of assets. Utlimately, WaMu imploded under the burden of bad loans.

"In 2008, the fund lost 36%, which was less than the S&P. And through the end of November, the fund's more than 49% gain places it in the top 1% of its peers. As with many funds, some of 2008's worst performers are leading the way up this year.

"Oakmark is well known as a value shop. Its goal is to find companies that are selling at a signfiicant discount to Oakmark's estimate of underlying business value, but also have attractive free cash flows, invest excess cash intelligently, and have a high level of management ownership.

"Oakmark Select invests in a concentrated portfolio of generally around 20 companies. Top holdings can soak up a lot of assets; in this case, more than 50% of assets are in the top ten.

"The fund's largest holdings are media companies, including Discovery Communications, Liberty Entertainment, and Viacom. Other top holdings include H&R Block and Schering Plough.

"Despite the market's run-up, Nygren notes that the market is still significantly lower than it was a decade ago and believes there are still many undervalued stocks left."